Middle east & Africa Organic Food & Beverages Market Outlook, 2029

Historically, organic agriculture in the MEA region has had its roots in traditional farming practices, where many communities adhered to organic principles without the use of synthetic pesticides or fertilizers. However, modern organic certification and farming practices started to gain momentum in the late 20th century as part of a global trend toward healthier food choices and sustainable agriculture. In the early 2000s, as global demand for organic products surged, countries in the MEA region began to invest more in organic farming and infrastructure to cater to both domestic and export markets. In countries like Egypt, Tunisia, and Morocco, organic farming has become a vital sector, with both governmental and private organizations recognizing the economic potential of organic agriculture. Egypt, for instance, has emerged as a significant producer of organic products, particularly in the agricultural sector, with exports to Europe and the Middle East. Similarly, Morocco has developed a robust organic certification process, with an emphasis on producing organic herbs, fruits, and vegetables. Over time, the demand for organic food has not only been driven by local consumer preferences but also by the need for export-oriented products to meet international organic certification standards. The regulatory environment in the MEA region for organic food and beverages varies widely across countries. In the Gulf Cooperation Council (GCC) countries such as the UAE, Saudi Arabia, and Qatar, the demand for organic products has been increasing as consumers seek healthier and more sustainable options.

According to the research report, “Middle East & Africa Organic Food and Beverage Market Outlook, 2029” published by Bonafide Research, the market is anticipated to add USD 10.7 Billion from 2024 to 2029. Consumers looking for organic alternatives are starting small and slowly expanding their shopping basket. Whether it is a lifestyle decision or an ethical commitment organic is just one aspect and is tied to what can be seen as a trend towards increased adoption of a plant-based or vegan diet. Even though the organic food segment has a clear dominance, the organic beverage segment is growing at a recommendable rate. Although organic packaged food products are slowly gaining traction within the region, most of the current sales come from foreign exports. Local consumers, on the other hand, are unaware of the benefits of organic products and thus are not keen on paying a premium for an organic product. There is a wide variety of organic beverages in varied packaging formats available across the region. This attracts consumers to buy them based on their taste preferences and convenience. The region is now seeing some categories that are dominated by organic ranges thanks to significant price reductions, making them more affordable. For example, dry goods, such as grains and pulses, were previously the segment where people simply wanted to buy the cheapest option, but with the entry of organic players, people are willing to pay a slightly higher amount for a better product. However, by the end of the forecast period, even though the modern retail segment is likely to lead, the online sales channel segment is likely to achieve higher market growth during the forecast period.

In 2018, there were more than 2 Million hectares of certified organic agricultural land in Africa. Compared to 2017, Africa reported an increase of 4,130 hectares, a 0.2% increase. The market is led by Saudi Arabia, which held a share of more than 10% in 2021 and was followed by South Africa. A significant proportion of organic food and beverages is imported from Europe, where organic farming is well established and both producers and consumers are attuned to the concept. The issue in this region is staying true to the essence of the organic lifestyle, which means buying in the locality and buying seasonal produce to consume fresh from the farm within a relatively short timeframe. Many of the African organic farmers are in a handful of countries like Uganda, followed by Tanzania, Ethiopia, Senegal, Madagascar, Kenya, Zambia, Togo, and Mali. African consumption of certified organic produce is relatively small or non-existent, and most organic goods there are produced for export. As global demand for organic products is continuing to grow, African farmers will have little trouble finding markets for their certified goods. There are, however, many challenges still standing in the way of the African organic farmer.

Higher prices are not necessarily enough, however, to convince farmers to convert to organic production in the region, as there are many more factors important in the determination of profitability. In addition, while some of these factors are shared by organic and conventional farmers, many differ. For example, while organic production means that farmers do not spend as much on synthetic fertilizers and pesticides, the lack of such inputs may leave their crops more vulnerable to pests and damage. On the other hand, the Middle East and Africa health and wellness food market is growing faster than the packaged food industry, owing to shifting customer tastes toward a more natural and functional offering to adopt a more holistic approach to a balanced diet. The growing number of individuals altering their eating habits and embracing a balanced nutritional diet and an active lifestyle is a major factor driving the growth of the health and wellness food industry. People worldwide are realizing the value of a healthy diet, exercise, and regular physical activity, which is critical for the market's growth. However, high prices of health and wellness foods and high maintenance costs may hamper the market's growth.

Plant-based or vegan food products are made from the extracts of plants such as almond, soy, pea, rice, and oat, among others. These products are a high source of proteins, minerals, and vitamins and are required by the body to promote a healthy lifestyle and reduce the risk of various diseases. The growing popularity of veganism and awareness about the health benefits of plant-based products has driven the demand for vegan nutritional foods and beverages across the Middle East and Africa region. Furthermore, technological advancement and the requirement for natural and clean-label products have urged manufacturers to develop gluten-free, high-fiber protein shakes and other products, which are expected to stimulate organic food product growth. There is a rapid demand for protein-based nutritional and healthy foods and beverages as consumers have become more health-conscious and prefer foods with more nutritional value and health benefits that will help them maintain a healthy diet. Nuts, cereals, grains, fruits, and vegetables are important protein sources and are used to produce protein-based food products. Thus, manufacturers focus on new product developments by bringing various blends of nuts, fruits, grains, cereal-based snacks, bars, beverages, and others high in protein to attract the consumer base. Moreover, protein is one of the major macronutrients our body needs in a very large quantity to function properly. Protein is an important substance that is needed by every body cell. Protein is the primary component of nails and hair, as well as skin and the body, as it builds and repairs tissues. It is also essential for bones, muscles, and blood. Thus, manufacturers are making efforts to introduce protein-rich foods into the market.



Moreover, many companies seek to provide products that satisfy the ever-growing consumer demand for healthy, convenient, and non-alcoholic options such as ready-to-drink (RTD) tea and coffee, sparkling herbal water, and low-sugar smoothies, shakes, and juices. These rapid innovations led to an increase in the demand for healthy drinks in the market. Consumers are becoming more health-conscious, increasing the demand for nutritious beverages and low-sugar non-alcoholic drinks, due to which sports and energy drinks are expanding into the market. In addition, consumers are shifting towards organic drinks that do not contain chemical ingredients, which can give them more nutrition and health benefits. The issue in this region is staying true to the essence of the organic lifestyle, which means buying in the locality and buying seasonal produce to consume fresh from the farm within a relatively short timeframe. In Africa, significant efforts have been made to mainstream organic agriculture into policy, national extension systems, marketing and value chain development, and the curricula of some academic institutions and research activities in the region. Advancements in technology and innovative products, along with the introduction of new flavors and products containing low fat, low sugar, and low sodium levels, are all factors that have gained the attention of consumers.

In the UAE, the major organic product suppliers have witnessed a spike of as much as 300–400% in their sales. This is because the residents have become highly conscious of their health amidst the COVID-19 pandemic. One of the manufacturers to have witnessed a major spike in their sales is Greenheart Organic Farms. There is a growing awareness of organic food and an increasing adoption of different cuisines due to the sizeable expatriate population. A shift toward domestic production will help achieve food sufficiency and security per Saudi Vision 2030 and the UAE National Food Security Strategy 2051. In South Africa, the organic sector pioneered private practices and systems in small informal groups to guide the public and private sectors on environmental and sustainability issues.

COVID-19 Impacts:
The COVID-19 pandemic has affected the Middle East & Africa's organic food & beverage markets significantly. The persistence of COVID-19 for a longer period has affected the supply chain as it got disrupted, and it became difficult to supply the food products to the consumers, initially decreasing the demand for food products. However, post COVID, the demand for health and wellness food products has increased significantly owing to increased awareness about the benefits of healthy and nutritious food in the long term, which in turn increases the demand for health and wellness food. Consumers are trying to lead a healthy lifestyle and are more inclined towards the healthiest food products such as plant-based, vegan, and nutritional foods and beverages. Thus, the trend of having healthy eating patterns has significantly affected the market, which is leading the market towards rapid growth in the coming years.

Major Companies considered in Report:
Danone - WhiteWave Foods, General Mills, Hain Celestial Group

Considered In the Report
• Geography: Middle East & Africa
• Historical year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecasted year: 2029

Countries covered:
• Saudi Arabia
• Qatar
• South Africa
• UAE

Aspects Covered In the Report
• Market Size By Value for the time period (2018-2029F)
• Market Share by Type (Food & Beverage)
• Market Share by Food (Fruits & Vegetables, Meat, Fish & Poultry, Dairy Products, Frozen & processed Food)
• Market Share by Beverage (Non-Dairy, Coffee & Tea, Beer & Wine)
• Market Share by Sales Channel (Convenience Store, Modern Retail, Online Retail)
• Market Share by Country

The approach of the report:
We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

Intended Audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the organic food and beverage companies, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.