HOW
NUTRITIONAL SUPPLEMENT MARKET IS POSITIONED IN THE UAE?
A shift in consumption trend was observed
in the UAE health and wellness industry wherein the consumers have shifted from
the consumption of pharmaceuticals for the treatment of chronic type diseases
to preventing chronic diseases at the first place, thereby reducing people’s
dependency on various pharmaceutical drugs. Nutritional supplements have
positioned themselves as an alternative for the traditional medicine in the
country. The Nutritional
Supplements market in the UAE was observed in the late growth stage
during the study period. UAE Nutritional Supplement market size was evaluated
at AED ~ million in 2013 which grew at a CAGR of ~% in the five year review
period 2013 - 2018.
However, the Nutritional Supplement Market observed to be AED
~ million in 2018. The UAE market is being driven by various factors such as
increase in awareness about health and wellness through government initiatives,
change in lifestyle of the consumers, more people becoming active by joining
gyms and participating in sports and others. This has led to inclusion of
nutritional supplements in their diet for improvement of overall health.
The UAE Nutritional Supplements market is largely dominated
by the sales of Functional Foods which includes Dairy products, Baby Food,
Breakfast Cereals and other categories.
New channels of retail such as Internet
retailing, opening of chained convenience stores and others are emerging in the
market and have helped in facilitating the sales.
UAE
NUTRITIONAL SUPPLEMENT MARKET SEGMENTATION
Functional
Foods: The functional foods segment is the leading product segment in the
UAE Nutritional Supplement market with a revenue share of ~% in 2018. The
market for functional food has increased as consumers are becoming more aware
about the adulterated chemicals and preservatives used in their food products,
the consumers are shifting to products made from natural ingredients,
containing added nutrients in order to support the hectic and stressful fast
paced lifestyle of the consumers. Dairy based products are the leading product
category in the functional food market. These are highly consumer during the
Ramazan season. In this the major demand is for dairy based yogurts as these
products enhance the digestive system by maintaining good gut health. In
Yogurts, Reduced Fat products are gaining traction in the market due to the
increase in the health awareness. Dairy products are followed by baby food
products as the second most contributing category in the market.
Functional
Beverages: The UAE Functional Beverage market revenues declined over the
years as revenue from AED ~ Million in the year 2013 to AED ~ in 2018, thereby
displaying a five year CAGR of ~% over the review period 2013-2018. This
decline in the market has happen due to introduction of new taxes by the
government. In October 2017, the UAE government implemented ~% Excise Duty on
the energy drinks. In addition to this, the government introduced a nationwide
VAT of ~% on different products in January 2018.
This declined the market for the Energy
Drinks which is the biggest product category for the UAE Functional Beverages.
Vitamins
and Dietary Supplements: Vitamins and dietary supplements was the least
revenue contributing product segment with a share of ~% in the UAE Nutritional
Supplement market in 2018.The market was valued at AED ~ Million in 2013 and
reached to a value of AED ~ Million in 2018 and registered a five year CAGR of
~% during the period 2013-2018. The market has developed due to various factors
such as change in the lifestyle of the consumers and more people becoming
active by joining gyms and participating in sports, filling the gaps created
due to lack of nutrients consumed in a regular diet through these products,
adoption of preventive ideology wherein the consumers starts consuming nutritional
supplements in order to avoid getting ill and to avoid various other diseases.
The market is currently in the early growth stage in the UAE and expected to
develop more in the upcoming years.
UAE
FUNCTIONAL FOODS MARKET SEGMENTATION
By
Type of Functional Foods: The Dairy products were the most revenue
contributing segment in the UAE functional food market with a share of ~% in
2018. Dairy products are mostly consumed during the Ramazan period as people
fast during that period; they consume high dairy products in order to maintain
good gut health. It is followed by Baby Food in terms of revenue contribution
with contribution of ~% in 2018, which is followed by breakfast cereals with
contribution of ~% in 2018.
In the Dairy market, the biggest
contribution was made by the Dairy Based yogurt category. These yogurts are
consumed almost five times of the normal consumption during the month of Ramazan.
For more information on the research
report, refer to below link:
Related reports
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Ankur Gupta, Head Marketing & Communications
+91-9015378249
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