A significant shift is occurring in the Middle East private label food and beverages market, with rapid growth anticipated by 2025. The increased acceptance of private label products in the region can be attributed to their growing popularity. Private label brands are being offered by an increasing number of online and offline retailers as consumers demand quality for their money. Retailers in the region are aggressively responding to the increase in demand by incorporating robust private label product strategies.
Primary Factors Supporting the Growth of Market Share
There are multiple drivers supporting the growth of the food and beverages sector in the Middle East .Middle East private label food and beverages market Most importantly, the evolving consumer demographics serve as the primary stimulus. In the past few years, there have been observable shifts in shopper behavior. Now, as opposed to decades older, buyers especially from the millennial and Gen Z demographic are no longer exclusively purchasing from global brands. They are more willing to use private served labels that are cheaper and offer reasonable value for money in comparison to the international brand. Moreover, this shift is being spearheaded by not only those looking for value. Even those wishing to acquire premium niche products from private labels are driving this change.
Retailers in the region have also contributed in a remarkable manner to the market penetration of private label products. Carrefour, Lulu and Spinneys are serving as primary purchasers of private labels and are seeking to expand the market by availing bespoke models to serve a wider customer base. These brands are directly responding to the shift towards more health conscious food consumption by providing organic, gluten free foods and beverages as well as other premium health brands. These retailers are gaining market share in the highly competitive food and beverages market by innovation and effective positioning or differentiation of their private label ranges.
Competition in the same field and distribution of market share.
The private label food and beverages market in the Middle East is poised to reach unprecedented levels of competition by 2025. To enhance their market position, retailers have been focusing on offering competitive prices, quality products, and a diverse range of items. The competitive landscape is further defined by a growing assortment of both local and foreign regional stakeholders in physical and online retail spaces.
With Carrefour expanding its private label segments, it is poised to capture a considerable portion of the market. Other large retailers, like Lulu Hypermarket, have also poured massive amounts of capital into developing new lines of products to serve better the ever-evolving demands of their customers. The growing number of eCommerce stores also serves as an immense opportunity for growth as private label goods can be marketed to a larger audience, especially those in remote or neglected regions.
Private label brands are gaining greater acceptance in the UAE, Saudi Arabia, and Qatar due to their large expatriate population and high standard of living. On the other hand, Egypt, Oman, and Lebanon are expected to see a higher demand for these products owing their relatively lower prices.
Price Sensitivity and Value Proposition
The importance of price sensitivity remains pronounced in the case of private label products in the Middle East. The region’s economic landscape has made value for money more important than ever. They seek substitutes for expensive branded products and are ready to switch to private labels if these meet the mark in terms of quality. This need for quality at budget prices resonates the most during periods of economic stress.
Retailers have responded by introducing a wide variety of private label goods, spanning from basic to mid-tier and even premium offerings that capture diverse consumer segments. From such retail chains, they stand to gain significantly as they can increase their market share while catering to several populations.
Challenges and Opportunities
Despite the share of market opportunity, there exist some challenges. The trust of consumers in private label goods is still archetypal. Trust and loyalty through different channels will be pivotal for retailers who aim to increase the adoption rate of their offerings. Strategies focusing on product quality, competitive pricing, and unambiguous marketing will be integral towards building consumer trust.
Fore More Info : - https://www.gmiresearch.com/report/middle-east-private-label-food-and-beverages-market/
Conclusion
The private label food and beverages market in the Middle East is projected to undergo rapid growth in the coming years. Increased market competition and innovation in private label offerings, as well as evolving shopper preferences are contributing to the growth of this market. Retailers in this region are beginning to stock a greater variety of goods to meet different consumer needs, which is expected to boost the private label segment further.
Company Name: GMI RESEARCH
Email: [email protected]
Address: Dublin, Ireland
Website: https://www.gmiresearch.com/
GMI Research – Consulting & Market Research
Comments