Ta'aheel reveals new high-growth areas in Arab beverage industry as consumers focus on health benefits

One of the key indicators of a shift in consumer preference has been the increase in incidence of consumption of plain milk, which doubled from 16% in 2003 to 33% in 2005; and flavoured milk, which increased to 10 % in 2005 from just 3% in 2003. Moreover, studies have shown that milk consumption among children has registered the biggest increase at 56%, while adult consumption went up 24% in 2005.

"The last couple of years have shown a gradual transition in beverage consumption habits of consumers in the Gulf market. Research shows that more and more consumers are taking into account the health effects of the beverages that they buy. This is understandable, considering the intensified campaign by both the public and private sectors to promote a healthy lifestyle," said Sharaf Dabbagh, President, Ta'aheel.

In 2007, Ta'aheel organised the inaugural Arab Beverage Forum wherein key industry players were able to focus on the emerging trends of the Arab market and formulate strategies to capitalise on the new growth opportunities in the beverage industry. The four-day conference also served as a first-of-its-kind high-level networking platform among the MENA region's industry leaders along with renowned international and regional beverage industry executives and consultants.

Drawing strength from the success of the 2007 edition, Ta'aheel is organising the 2nd Arab Beverages Forum on June 15, 2008, aiming to discuss the latest market trends, strategies and best practices, and a range of critical issues that affect suppliers, retailers, creative marketers, managers and consumers in the beverage industry.

The Forum will be held concurrently with both the first Bottled Water Forum and the first Flavours and Food Additives Exhibition at the Dubai International Convention and Exhibition Centre.

Health-related issues are again expected to be among the critical topics in the upcoming Forum, particularly in view of rising incidence of various diseases. In the UAE for instance, it has been reported that around 30% of children have been diagnosed with diabetes, prompting many parents to be more selective on the beverages they buy for their children. The current focus on health benefits has also helped increase the demand for fruit juices, which have achieved an annual growth rate of 10-12%.

"The Arab World's beverage industry offers huge growth potential for both local and international players. Accordingly, Ta'aheel has participated in various initiatives such as the Arab Beverage Forum and the Arab Beverage Association designed to help consolidate the region's booming beverage industry. We believe that it is important to create a platform that promotes quality, innovation and dynamism to ensure high consumer satisfaction and to address new market requirements; the Forum and the ABA have been established primarily to serve this purpose," said Dabbagh.

The Arab Beverage Association (ABA) is an alliance comprising top-level executives from the beverage industry in the Arab World that promotes advanced innovation, packaging, flavouring, retail strategies, trends, new products and technology, market and consumer studies. In addition, the Association offers specialised studies and consultancies to the beverage industry.