Yoghurt and Sour Milk Products in Middle East and Africa

October 2019

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.

USD 1,325
Request More Information

Key Findings

Value for money

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.

Health and wellness needs look different for each country in MEA

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.

Increased awareness of gut health

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.

Demand for convenience fuels future growth

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.

Introduction

Scope
Key findings

Regional Overview

MEA records lowest per capita spend on yoghurt and sour milk products
Yoghurt and sour milk products recovering, as consumers adapt to rising costs
Strong price promotion makes yoghurt an affordable staple in Egypt
Drinking yoghurt the fastest growing category in Algeria
Flavoured yoghurt leading across the MEA region
Convenience, health and wellness drive product innovation in MEA
Supermarkets and hypermarkets gain share from independent small grocers
Modern retailing expanding in MEA at the expense of traditional retailing

Leading Companies and Brands

Leading players under pressure as consumers seek value for money
Danone remains clear leading player despite decline in value share
Algeria’s yoghurt culture strengthens Soummam SpA and Hodna Lait
Market leaders remains unchanged for five years

Forecast Projections

Algeria leads growth, followed by Morocco and Saudi Arabia
Health and wellness and product innovation assist category recovery
GDP per capita expected to positively affect future growth
Population growth helps sustain growth in yoghurt and sour milk products

Country Snapshots

Algeria: market context
Algeria: competitive and retail landscape
Egypt: market context
Egypt: competitive and retail landscape
Israel: market context
Israel: competitive and retail landscape
Morocco: market context
Morocco: competitive and retail landscape
South Africa: market context
South Africa: competitive and retail landscape
United Arab Emirates: market context
United Arab Emirates: competitive and retail landscape
Share:

NEW REPORT GUARANTEE

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page