MEA Packaged Vegan Food Market Outlook to 2030

MEA Packaged Vegan Food Market Overview

• The MEA Packaged Vegan Food market is valued at USD 915 million, based on a five-year historical analysis. The market is primarily driven by a shift in consumer preferences toward plant-based diets, motivated by health, environmental concerns, and ethical considerations. Additionally, advancements in food processing and an increase in the availability of vegan options across retail and e-commerce platforms have contributed to this growth.

• Countries such as the United Arab Emirates and South Africa dominate the market due to their growing urban populations, higher disposable incomes, and well-established retail infrastructure. The UAEs rapid adoption of sustainable lifestyles and South Africas increasing awareness of plant-based diets among health-conscious consumers position them as key players in the regions market landscape.
• As part of its Vision 2030 initiative, the Saudi government is promoting healthier lifestyles among its citizens. The Ministry of Health has launched campaigns encouraging the consumption of plant-based foods to combat rising obesity rates, which stood at 28.7% in 2023. These initiatives are expected to boost the vegan food market.

MEA Packaged Vegan Food Market Segmentation

By Product Type: The market is segmented by product type into dairy alternatives, meat substitutes, vegan bakery and confectionery, and ready-to-eat meals. Recently, dairy alternatives have a dominant market share under this segmentation. This is largely attributed to the increasing prevalence of lactose intolerance, alongside consumer demand for almond, soy, and oat-based milk products. The growing influence of international brands and their innovative product launches also bolster this segments dominance.

By Distribution Channel: The market is segmented by distribution channels into supermarkets/hypermarkets, online stores, and specialty vegan outlets. Supermarkets and hypermarkets dominate this segmentation due to their widespread availability, convenience, and ability to showcase a variety of packaged vegan products. Retailers like Carrefour and Spinneys have incorporated vegan sections to cater to this growing demand.

MEA Packaged Vegan Food Market Competitive Landscape

The market is characterized by a blend of regional and global players who focus on product innovation and strategic collaborations to capture market share. The market is dominated by companies like Beyond Meat and Alpro, which offer extensive product portfolios and leverage global branding strategies.

MEA Packaged Vegan Food Market Analysis

Market Growth Drivers

• Increasing Health Awareness: The Middle East and Africa (MEA) region has witnessed a significant rise in health consciousness among consumers. For instance, a survey by the International Food Information Council found that 63% of consumers in the UAE are actively seeking healthier food options, leading to a surge in demand for plant-based and vegan products.
• Environmental Concerns: Environmental sustainability has become a pressing issue in the MEA region. The United Nations Environment Programme reported that the region faces significant environmental challenges, including water scarcity and land degradation. As a result, consumers are increasingly turning to vegan diets, which have a lower environmental footprint compared to animal-based diets.
• Cultural Shifts and Influences: The MEA region is experiencing cultural shifts influenced by globalization and exposure to Western lifestyles. This has led to a growing acceptance of veganism, especially among younger populations. In Saudi Arabia, for example, the Saudi Gazette reported a 40% increase in vegan restaurant openings in major cities over the past two years, indicating a growing acceptance and demand for vegan options.

Market Challenges

• High Product Costs: Vegan products in the MEA region often come with a premium price tag. For instance, a market analysis by Euromonitor International found that plant-based meat alternatives in South Africa are priced 30% higher than their animal-based counterparts. This price disparity can deter price-sensitive consumers from adopting vegan products.
• Limited Consumer Awareness: Despite growing interest, there remains a lack of awareness about vegan diets and products in certain parts of the MEA region. A survey by Nielsen in 2023 revealed that 45% of consumers in Egypt are unfamiliar with vegan food options, indicating a need for increased education and marketing efforts.

MEA Packaged Vegan Food Market Future Outlook

Over the next five years, the MEA Packaged Vegan Food industry is anticipated to witness growth due to increasing awareness about plant-based diets, evolving consumer preferences, and government-led sustainability initiatives.

Market Opportunities: 

• Increased Localization of Vegan Products: Over the next five years, the MEA Packaged Vegan Food market is expected to witness increased localization, with regional companies establishing production facilities. This shift aims to reduce reliance on imports, which accounted for 70% of the market in 2023, as reported by the African Development Bank.
• Technological Advancements in Plant-Based Foods: The adoption of advanced food processing technologies will enable the development of innovative plant-based products with improved taste and texture. For example, extrusion technology is expected to gain prominence, facilitating the production of meat substitutes that mimic the consistency and flavor of traditional meat.