Report Overview

The increasing demand for natural sweeteners, flavoring agents, and natural colorants in the food industry has stimulated the growth of the Middle East and Africa fruit concentrate market. Moreover, over the last couple of years, health food fads, along with the increasing obesity and diabetes rates nationwide, have led to a marked increase in natural and healthy food consumption. products, which is powering the market growth.

The Middle East and Africa Fruit Concentrate Market was worth USD2.5 Billion in 2020 and is further projected to reach USD3.9 Billion by 2027, at a CAGR of 6.5% during 2021-2027 (forecast period). The increasing demand for natural sweeteners, flavoring agents, and natural colorants in the food industry has stimulated the growth of the fruit concentrates market. Moreover, over the last couple of years, health food fads, along with the increasing obesity and diabetes rates nationwide, have led to a marked increase in natural and healthy food consumption. As a result, fruit concentrates are becoming an increasingly popular substitute for refined sugar, used in preparing juices, puddings, cakes, chocolates, and other confectionery products. Additionally, because of fruit concentrates, consumers can taste seasonal fruits during the off-seasons even when they are not available. These are some of the factors driving the growth of the Middle East and Africa Fruit Concentrate Market.

Source: BlueWeave Consulting

The Middle East and Africa Fruit Concentrate Market Overview

Fruit concentrates are created by removing water from fruits. Fruit concentrates help in reducing the weight and volume of juices in fruit. The growth of the fruit concentrate market is being fueled by rising consumer health consciousness and an increase in demand for organic food items. According to the World Diabetes Foundation, around 35.4 million people, or 9.1% of adults aged 20 to 79, were diagnosed with diabetes in the Middle East and North Africa Region in 2015. Moreover, according to the Centers for Disease Control and Prevention, drinking sugary drinks frequently can lead to serious health problems such as weight gain, non-alcoholic liver disease, type 2 diabetes, obesity, kidney disease, gout, and cavities.

In comparison to sucrose, fructose in fruit concentrate has a lower glycemic index, making it a healthier option for diabetics. Moreover, Fructose is a great hydrator, thus baked goods cooked with it will be not only sweetbut puffy and moist as well because it absorbs more water than granulated sugar. Fruit concentration also extends the shelf life of the product, thereby making transportation and storage simple and cost-effective.

Growth Drivers

Increasing Innovation has led to Greater Brand Penetration

Many fruit and vegetable juices are available in different packaging formats across the region. Consumers are drawn to purchase fruits and vegetable juices based on flavor preferences and convenience. The increased per capita consumption of juices, especially fruit juices, has given a significant platform for foreign manufacturers to enter the regional markets of the Middle East and Africa. New flavors made by the companies are vying with conventional flavors such as peach, pomegranate, pink guava, and lemon, which are at the top of the list. However, the most preferred juices among the consumers in the region are orange, mango, apple, guava, and strawberry.

Less Consumption of High Sugar Content

Soft drinks are composed of high sugar content, artificial colors, artificial sweeteners, and caffeine, which can cause adverse effects on the human body. This includes pop, soda, cola, tonic, lemonade, fruit punch, sweetened powdered drinks, as well as sports and energy drinks. However, soft drink consumption, such as colas and flavored sodas, is declining because of their adverse effects. Dr. Douglas Bettcher, WHO's Director for the Prevention of NCDs, says free sugars including sugary drinks are a major contributor to obesity and diabetes around the world. Because of the harmful health effects of carbonated drinks, a huge portion of the population is currently switching to fruit juices. Moreover, people's lifestyles and eating patterns have changed in recent years, resulting in increased consumption of affordable, healthy, and quick sources of nutrition, such as packaged fruit juices and thisare catalyzing the growth of the fruit concentrate market.

Restraints

The awareness of the side-effects of excessive fructose consumption is one of the primary restraints impeding the growth of the Middle East and Africa Fruit Concentrate Market. Several symptoms, including chronic diarrhea or functional bowel disturbances, have been seen in some patients due to fructose consumption.There are also several diseases associated with excessive fructose consumption such as the prevalence of obesity, type 2 diabetes, and non-alcoholic fatty liver disease.In turn, these factors limit the market's growth.Also, post-harvest losses, such as those associated with fruit transportation, processing, and storage, can hamper the industry's ability to import products.

Impact of COVID-19 in the Industry

The outbreak of COVID-19 has affected almost every industry worldwide. The food &beverages industry has also been affected by the pandemic to some extent. Among the effects of COVID-19, the supply chain disruptions have severely affected the market, stifling the supply of fruit for fruit concentrates. To tackle the situation, companies in the Fruit Concentrate Market have been devising strategies that include demonstrating their contactless manufacturing and delivery techniques, accentuating USP statements, focusing on packaging, and enhancing product visibility on internet platforms.However, with a swift and sustained recovery in most developing nations, the Fruit Concentrate Market is quickly returning to its pre-COVID levels and is expected to grow at a healthy rate over the forecast period.

The Middle East and Africa Fruit Concentrate Market: By Fruit Type

Based on fruit types, the Middle East and Africa Fruit Concentrate Market has been segmented into Orange, Apple, Pineapple, Banana, and others.  Out of these, the orange segment is leading the market share in terms of revenue. Its domination is due to the fact that it contains more fiber, which is low in calories and rich in vitamins. Citrus fruits such as oranges are also beneficial in terms of preventing kidney stones, and cancer, which in turn drives the market growth.Moreover, citrus fruits are rich in Vitamin C, which helps prevent wrinkles besides reducing cholesterol levels.

The Middle East and Africa Fruit Concentrate Market– ByApplication

Based on applications, the Middle East and Africa Fruit Concentrate Market isdivided into Beverages, Soups & Sauces, Dairy, Bakery & Confectionery, and others. The beverages segment accounted for the maximum share of the Middle East and Africa fruit concentrate market in 2020. Fruit concentrates act as natural sweeteners; thus, the beverage sector of Middle East and Africa relies heavily on fruit concentrates.Fruit concentrates in the beverage industry are mainly used for producing energy drinks, juices, tea, and smoothies. Moreover, the beverage industry is growing substantially in the Middle East and Africa region, contributing to the growth of the fruit concentrate market.

The Middle East and Africa Fruit Concentrate Market–Country Insights

Based on the countries, the Middle East and Africa Fruit Concentrate Market is categorized into South Africa, Saudi Arabia, and the Rest of the Middle East. Saudi Arabia’s fruit concentrate market is likely to see growth in demand during the forecast period. As consumers switch away from carbonated energy drinks to healthier options, this dominance is mainly the result of consumers' preferences for healthy alternatives. With the rise in health awareness and increase in beverage consumption, consumers in Saudi Arabia are becoming more aware of the ingredients used in preparing juices.Consequently, consumers are more likely to favor beverages with no-added-sugar, added vitamins, minerals, and super fruits.

Recent Developments

In January 2021, Rani, Aujan Coca-Cola Beverages Company’s first homegrown beverage brand, has launched 100% juice for the first time in SIG’s combiblocMini carton packs, 200ml and 125ml in Dubai.

In March 2021, Pure Harvest, an Abu Dhabi-based agriculture technology start-up announced it has secured $60 million in funding to expand its Middle East operations, but said it has been an uphill task trying to raise capital.

Competitive Landscape

The key players in the Middle East and Africa Fruit Concentrate Market areIngredion Incorporated, SkyPeople Fruit Juice Inc., Archer Daniels Midland Co., Dohler Company, Diana Food, Argana Group, SVZ International B.V, SunOpata Inc., The Ciatti Company and Kanegrade Limited, Capricorn, Oceanaa, Acerola, Cherimoya, Lychee, Star Fruits, Coca-Cola’s minute maid, Almarai company, Del-Monte foods Inc., Alsafi Farm, and other prominent players.

The Middle East and Africa fruit concentrate market involve many prominent players. These players are capturing major market share by utilizing their extensive distribution channels in the country. New product launches, partnerships, growths, and acquisitions are the major policies adopted by prominent players in the fruit concentrate market.

Scope of the Report:

• By Fruit Type

• Orange
• Apple
• Pineapple
• Banana
• Others

• By Application

• Beverages
• Soups & Sauces
• Dairy
• Bakery & Confectionery
• Others

• By Country

• South Africa
• Saudi Arabia
• Rest of Middle East