Middle East & Africa bakery product market projected to hit US$2B by 2030

MIDDLE EAST & AFRICA – The Middle East and Africa bakery product market is projected to reach US$2 billion by 2030, up from US$1.5 billion in 2024, achieving a compound annual growth rate (CAGR) of 4.5%, according to a report by Virtue Market Research, an Indian strategic management firm.

The report highlights that South Africa held the largest market share last year and is expected to maintain its dominance throughout the forecast period. Other significant players in the market include the UAE, Saudi Arabia, Qatar, Israel, Nigeria, Kenya, and Egypt.

Notably, Turkey plays a crucial role in the region, driven by strong domestic and international demand for bakery products due to its strategic location and rich culinary heritage.

The report outlined that the top five companies significantly influencing this sector are: Bimbo QSR, Modern Bakery LLC, Agthia, Anat Foods, and Almarai Group.

According to the report, growth in the bakery product market can be attributed to an increasing preference for healthy lifestyles, rapid urbanization, and a burgeoning middle class in the region.

Bread remains a dietary staple, with flatbreads being particularly popular in Africa and leavened varieties more common in the Middle East. The rise of specialty bakeries offering unique products also enhances market diversity.

The report also revealed that the sector for packaged bakery products is undergoing rapid growth, primarily fueled by the expansion of modern retail stores and improved access to packaging options.

This trend reflects consumers’ increasing demand for convenience and longer shelf life in their food choices.

Despite this growth, the report highlighted several challenges that the industry faces. Large-scale production in the bakery sector encounters significant barriers to entry.

Established brands enjoy strong consumer loyalty, making it difficult for new bakeries to find their niche. Additionally, the substantial capital investment required for equipment, facilities, and ingredients presents a significant hurdle for aspiring businesses.

Fluctuating raw material prices, especially for essential ingredients like flour, sugar, and oils, also pose challenges. These fluctuations can be influenced by various external factors, including political instability and global market trends.

According to the report, a significant market opportunity lies in the changing consumer preferences towards healthier options. There is a growing demand for bakery products that offer nutritional benefits, such as those enriched with whole grains, nuts, seeds, and protein.

Furthermore, catering to specific dietary needs, such as gluten-free or sugar-free options, can create niche market segments.

Overall, the bakery product market in the Middle East and Africa reflects the interplay of historical heritage, evolving consumer tastes, and emerging market forces.

As the region adapts to urbanization, shifting consumer demands, and a competitive business environment, the bakery industry continues to evolve, innovate, and seize new growth opportunities.

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