Rising consumer demand compels innovation in GCC food flavors market, finds Frost and Sullivan
- United Arab Emirates: Thursday, November 01 - 2012 at 13:17
- PRESS RELEASE
The food flavors market in the Middle East is expected to double in the next five years, driven by strong innovation in products and technology. Greater consumer awareness regarding flavors and their variants is compelling blenders and manufacturers to come up with unique variants.
Manufacturers are introducing many changes in terms of conventional and non-conventional variants. This steady stream of innovation is opening the market up for competition and higher revenue inflow.
"The higher revenues are mainly due to the increasing demand for flavorings by fast moving consumer goods companies," said Gayathry Ramachandran, Sr. Consulting Analyst, Food Practice, Frost & Sullivan. "Dairy and beverage are the other growing application sectors, owing to the increased domestic consumption and consumers' desire for novel flavors."
Confectionery and the bakery products containing advanced variants and other functional ingredients are considered premium and high-priced products.
However, revised regulations that are not favorable to the flavors market are squeezing manufacturers' profit margins. Flavor blenders can attempt to offset this challenge by developing new processes of manufacturing and developing flavors that will not be affected by regulations.
The higher purchasing power of citizens in the Middle East is another huge boost to the market. Despite the uneven distribution of wealth, the improved affordability has benefited the food and beverage market, which, in turn, has created opportunities for the flavors market.
The market has also gained significantly from a number of mergers and acquisitions and large investments in R&D. "Overall, new techniques that revamp flavoring applications, along with new product developments, are vital to maintain an advantage in this highly competitive market," noted Gayathry.
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