This report shows the landscape of yoghurt and sour milk in MEA and highlights the key growth drivers. This category saw marginal growth driven by product innovation, rising awareness of digestive health and healthy living. Manufacturers navigate difficult trading environments by offering value for money and regular promotions to maintain their volume sales. MEA has a high potential for growth in the forthcoming years as this category combines traditional products with the latest trends.
The implementation of 5% VAT in the Middle East, notably Saudi Arabia and the United Arab Emirates has put strain on consumers which now are opting for more affordable products that offer value for money. Devaluation of currencies in Africa, for example Nigeria and the 1% increase in VAT in South Africa have decreased spending power and consumers cut out non-essential products. Rising electricity and fuel cost, fluctuation in oil prices and rising cost of imports further reduce the spending power of consumers in the Middle East and Africa; therefore, value for money is key.
What is perceived as healthy varies across the MEA region. Yoghurt in South Africa has a higher fat content compared to yoghurt in other regional markets. Conversely, reduced fat yoghurt is more popular in Egypt. Israel has seen rising demand for protein-enriched products where fat content is negligible. Morocco sees a drive towards dairy-free yoghurt as Moroccans become more knowledgeable about the effects of dairy on their health. In Kenya, plain yoghurt is perceived as healthy because it is free from artificial additives and preservatives.
Across the region, consumers have become more aware with a healthy gut diet. Manufacturers are adding pre- and probiotics to yoghurt and further fortify yoghurt to meat consumers health and wellness needs. Products to improve gut health have been seen in Morocco, Saudi Arabia, South Africa, Algeria and the United Arab Emirates.
Consumers’ busy lifestyles are ever increasing and they have a need for nutritious on-the-go snacks or meals. Drinking yoghurt is a popular format to provide convenience and nutrition. Hence, its popularity has increased in Algeria, the United Arab Emirates, Nigeria, South Africa, Saudi Arabia and Israel.
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