Juice in the Middle East and Africa

September 2020

Juice in the Middle East and Africa Juice is evolving rapidly, with distribution metrics becoming a key differentiator within the competitive landscape. This report aims to evaluate the key local soft drinks markets in the fastest growing region in the world. The region boasts some of the most well-developed consumer markets but is also home to developing frontier markets where key drivers such as sugar tax, competitive consolidation and distribution are discussed.

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Key findings

Legislation to impact sales of juices

   Regulation around taxing beverages with added sugar has increased across the region. Some members of the Gulf Cooperation Council (GCC) rolled out selective taxes on carbonates and energy drinks in October 2017. Juices with added sugars have now been added to the tax remit as of December 2019. Taxation has been agreed by member states, currently implemented in Saudi Arabia and United Arab Emirates. South Africa has had a sugar tax in place since mid 2018.

Juices in the developing markets perceived as a healthier alternative to carbonates

Juices are considered to be a healthier alternative in markets where safe drinking water isn’t available. Consumer awareness of juice content in developing markets across the region is gaining significance. Taste, texture and mouth feel are increasingly important and a challenge to those manufacturers looking for alternatives to replace added sugar.

Highly consolidated industry in the Middle East and Africa

The juice industry is highly consolidated. In most markets, the top five players dominate with 60% of sales. Strong domestic players dominate individual markets, such as Almarai in Saudi Arabia and NCA Rouiba in Algeria. These companies are highly localised, competitive and responsive.

Pandemic prompts surge in demand in 2020

The spread of COVID-19 and accordant lockdown measures have resulted in stockpiling of food and beverages across the region, directly benefiting sales of juices. 100% juice in particular is valued more than ever as a healthy alternative, against the backdrop of new and acute health concerns. This spike in demand is expected to level out in 2021 but the accentuated importance of health positioning can be expected to continue over the coming years.

Scope
Key findings
Middle East and Africa leads global growth
Demand for juice boosted by health concerns
Juice drinks, the highest volume driver in the region
100% juices see growth across the board
100% juice driving absolute value growth
Demand for nectars declines in Saudi Arabia; regional boost for juice drinks
Major volume gains in Algeria and Nigeria
The imperative of winning distribution within independent small grocers
Traditional trade remains key despite growth in modern trade
Entry barriers high due to a consolidated environment
Coca-Cola Co leads through strategic foothold
Opportunity for new market frontiers exists despite protectionist policies
Top brands reliant on home territory
Juice sales in developed markets impacted by regulation
Emerging markets, Nigeria and Algeria showing phenomenal growth
Population and GDP per capita key forecast drivers
Regulation, demographics and distribution trifecta to impact future performance
Algeria: Market Context
Algeria: Competitive and Retail Landscape
Cameroon: Market Context
Cameroon: Competitive and Retail Landscape
Egypt: Market Context
Egypt: Competitive and Retail Landscape
Israel: Market Context
Israel: Competitive and Retail Landscape
Kenya: Market Context
Kenya: Competitive and Retail Landscape
Morocco: Market Context
Morocco: Competitive and Retail Landscape
Nigeria: Market Context
Nigeria: Competitive and Retail Landscape
Saudi Arabia: Market Context
Saudi Arabia: Competitive and Retail Landscape
South Africa: Market Context
South Africa: Competitive and Retail Landscape
Tunisia: Market Context
Tunisia: Competitive and Retail Landscape
United Arab Emirates: Market Context
United Arab Emirates: Competitive and Retail Landscape

Soft Drinks

This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.

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