TREND WATCH MIDDLE EAST, AFRICA AND CIS
Five Beverage rising trends in the region
Words: Caroline Migiro
WHILE THE MIDDLE EAST, AFRICA & CIS REGION HAS TENDED TO BE SLOWER MOVING THAN MARKETS IN ASIA OR NORTH AMERICA, THINGS ARE NOW STARTING TO HEAT UP, WITH A FEW EXCITING TRENDS AND DYNAMICS THAT BRAND OWNERS COULD – AND SHOULD – BE LOOKING TO TAP INTO.
Insight: Launches of functional teas and infusions have increased +120% between 2019-2022 [Mintel GNPD, 2023]
Teas and herbal infusions are increasingly popular in the region as consumers consider health and fitness an essential part of their lives and are continuously seeking products with functionality. Teas that promise to increase immunity, relieve stress, and aid digestion are becoming more popular with our customers.
Insight: 85% of consumers in the Middle East & Africa are concerned about the impact of inflation on their household budget (58% are ‘extremely concerned). [GlobalData Plc, 2022]
With the unrelenting global cost of living crisis and forex challenges in many markets in the region, consumers are more aware of their spending habits and are looking for better value for their money in all areas of their lives. To appeal to these price-sensitive customers, our customers are expanding their retail brand line-up to offer a wider selection of teas. This enables consumers to find a balance between product quality and affordability, especially where budget constraints are a concern.
To appeal to these price-sensitive customers, our customers are expanding their retail brand line-up to offer a wider selection of teas
Insight: Google searches for ‘tea tourism’ and related terms increased +75% in between 2018-2022 [Google Trends, 2023]
The tea tourism trend started five years ago and continues to gain popularity among tea enthusiasts. Tea gardens in Turkey, Iran, Russia, India, and Kenya, are opening their doors to tourists offering the opportunity for them to witness the tea-making process from bush to cup.
Insight: the Dubai-based DMCC Coffee Centre recorded a 50% increase in the volume of green coffee traded over the past 18 months. [DMCC]
Despite the prevalence of tea in the region, coffee and coffee-based beverages have been gaining traction indicating a changing customer preference and a potential increase in the market share of coffee in the region.
Insight: 74% of consumers in the Middle East & Africa pay a very high/high amount of attention to the ingredients in the food and beverage products they purchase [GlobalData Plc, 2022]
Consumers in the region are becoming increasingly conscious about the products they are consuming, and companies are responding by providing more detailed information about their products.
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Caroline Migiro is Business Development Manager at Finlays MEAC
