Market Scenario
Middle East savory snacks market was valued at US$ 2,350.0 million in 2023 and is projected to hit the market valuation of US$ 3,729.1 million by 2032 at a CAGR of 5.46% during the forecast period 2024–2032.
The Middle East savory snacks market is witnessing robust growth, driven by a combination of cultural practices, rising incomes, and increasing urbanization. Consumers in the region are showing a heightened preference for convenient and ready-to-eat savory snacks that fit into their fast-paced lifestyles. In 2023, the market size reached a valuation of $2.35 billion, reflecting a significant surge from previous years. This growth is underpinned by a youthful population, with over 60 million individuals below the age of 30 who are key consumers of snack products. Wherein, the target consumers are predominantly millennials and Gen Z, who make up approximately 50% of the Middle East population. This demographic is tech-savvy, brand-conscious, and open to experimenting with new flavors and formats. Popular brands such as PepsiCo's Lay's, local brand Al Rifai, and Mondelez International's Chips Ahoy have a significant market share. In 2023, Lay's reported sales exceeding $1 billion in the region. Additionally, local brands are gaining traction; Al Rifai expanded its product line by introducing 20 new snack varieties this year.
One of the notable consumption patterns in the savory snacks market is the preference for traditional flavors infused with modern twists. For instance, snacks incorporating za'atar, sumac, and other regional spices are gaining popularity. In Saudi Arabia alone, it's reported that households spend an average of $250 annually on savory snacks. The United Arab Emirates (UAE) also shows a high consumption rate, with over 150 million snack units sold in the first half of 2023. This inclination towards snacking is further amplified during festive seasons, where sales can increase by up to 30%.
Trends in the savory snacks market indicate a growing demand for healthier snack options. There's a significant shift towards baked snacks over fried ones, with sales of baked savory snacks reaching 1 billion units in 2023. Additionally, gluten-free and vegan snack options have entered the mainstream market, catering to the 10% of the population seeking alternative dietary choices. The push for healthier options is also evident in the introduction of snacks with reduced sodium and artificial additives, aligning with the health objectives of regional governments.
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Market Dynamics
Driver: Rapid Urbanization Leading to Increased Demand for Convenient Snack Options
The Middle East savory snacks market has been experiencing rapid urbanization, with over 70% of its population now residing in urban areas as of 2023. This shift has significantly impacted lifestyle and consumption habits, leading to a surge in demand for convenient snack options. Cities like Dubai, Riyadh, and Doha have become melting pots of culture and commerce, with bustling populations that require quick and accessible food solutions. The average working individual in these cities spends approximately 10 hours outside the home daily, heightening the need for on-the-go snacks. This urban expansion correlates with the increase in single-person households, which reached 15 million across the region in 2023. These households tend to prefer smaller packaging sizes and ready-to-eat savory snacks that don't require preparation.
The snack industry has responded by introducing over 500 new single-serve products this year alone. Moreover, convenience stores in urban savory snacks market have reported a 20% increase in snack sales, indicating a direct link between urban living and snack consumption. The infrastructure development accompanying urbanization, such as the proliferation of supermarkets, malls, and vending machines, has made snacks more accessible than ever. In 2023, there were over 10,000 new retail outlets opened across the Middle East, many stocking an extensive range of savory snacks. Additionally, public transportation hubs have become prime locations for snack vending, with over 2,000 new vending machines installed in metro stations and bus terminals this year.
Trend: Rising Preference for Healthier and Functional Savory Snacks with Natural Ingredients
In 2023, there has been a notable shift among Middle Eastern consumers towards healthier and functional savory snacks in the savory snacks market. This trend is driven by increased health awareness and government initiatives promoting better nutrition. The market saw the introduction of over 300 new snack products boasting natural and organic ingredients. For example, quinoa chips, kale crisps, and roasted chickpeas have gained popularity, with sales of these snacks reaching $500 million in 2023. Consumers are seeking snacks that not only satisfy hunger but also provide nutritional benefits. This has led to a rise in high-protein, high-fiber, and fortified snack options.
Snack bars enriched with dates and nuts have become staples, especially during Ramadan when energy-sustaining foods are in demand in the savory snacks market. A survey conducted in 2023 found that 40% of consumers are willing to pay a premium for snacks with added health benefits. Manufacturers are responding by reducing artificial additives and incorporating superfoods into their products. For instance, beetroot and turmeric-infused crackers entered the market this year, tapping into the demand for antioxidant-rich foods. The trend extends to packaging, with clear labeling of nutritional information becoming a mandatory requirement in several countries as of 2023, aiding consumers in making informed choices.
Challenge: Supply Chain Disruptions Affecting the Availability of Raw Materials
Supply chain disruptions have emerged as a significant challenge for the savory snacks market in the Middle East in 2023. Factors such as geopolitical tensions, port congestions, and fluctuating trade policies have led to inconsistencies in the availability of key raw materials like potatoes, corn, and wheat. The import dependency for certain ingredients has made the market vulnerable, with import delays averaging two weeks longer than in previous years. For instance, the potato harvest in some exporting countries was affected by climate anomalies in 2023, leading to a shortage that impacted chip production in the region. This shortage forced manufacturers to seek alternative suppliers, resulting in increased costs. The price of imported potatoes rose to $600 per metric ton in 2023, up from $400 in the previous year, squeezing profit margins for snack producers in the Middle East savory snacks market.
Additionally, logistical challenges such as limited container availability and increased freight costs have disrupted the supply chain. Freight costs from Europe to the Middle East escalated by 15% in 2023. These disruptions have compelled companies to consider local sourcing solutions. As a result, there has been a 10% increase in the investment in domestic agriculture projects aimed at securing a stable supply of raw materials for snack production.
Segmental Analysis
By Product Type
Potato chips have established themselves as the frontrunner in the Middle East's savory snacks market, controlling over 32% of the market share across several countries in the region. One of the primary reasons for this dominance is the universal appeal of potato chips as a convenient and satisfying snack. In 2023, the Middle East consumed approximately 1.2 million metric tons of potato chips, reflecting a strong preference for this product over other snacks. The portability and long shelf life of potato chips make them a staple in households and a popular choice for on-the-go consumption. The strong growth momentum of potato chips in the Middle East can be attributed the significant increase in urbanization, with over 65 million people now living in urban areas, leading to a higher demand for ready-to-eat snacks like potato chips. It is followed by the introduction of new flavors tailored to local tastes, such as chili, lemon, and spices unique to Middle Eastern cuisine, has bolstered consumer interest. In fact, in 2023, sales of locally flavored potato chips reached an all-time high of $850 million. Additionally, aggressive marketing campaigns and strategic partnerships with local retailers have expanded the availability of potato chips across various distribution channels.
End-users in the savory snacks market are particularly drawn to potato chips over other savory snacks due to their crispy texture and variety of flavors. The snack's affordability also plays a crucial role; the average price of a standard pack of potato chips remains accessible at around $1.50 in 2023. Furthermore, the rise of e-commerce in the Middle East has made purchasing potato chips more convenient, with online snack sales accounting for $500 million in revenue this year. Healthier versions of potato chips, such as baked or low-sodium options, have also gained popularity, aligning with the growing health consciousness among consumers—sales of these healthier options increased by 15% compared to the previous year.
By Flavor
Salt has emerged as the most popular and preferred flavor among all the flavors available in the Middle East savory snacks market, including barbeque, spice, plain/unflavored, and other flavors like cheese, butter, smoky, and umami. One primary reason for the dominance of the salt flavor is its universal appeal and ability to enhance the natural taste of snacks without overpowering them. In 2023, the consumption of salty snacks in the Middle East reached an estimated 1.5 million metric tons, indicating the strong preference for this flavor profile among consumers.
Several key products heavily utilize the salt flavor in the savory snacks market, contributing to its popularity in the region. Potato chips, for instance, have a significant market presence and a substantial portion of these sales comes from salted varieties. Similarly, salted nuts and seeds have seen increased demand, with the market value reaching $700 million this year. The simplicity and familiarity of the salt flavor make it a go-to choice for snack manufacturers aiming to cater to a broad audience. Salted popcorn has also gained traction, especially in urban areas, with sales hitting $150 million in 2023.
The preference for salty flavors in the savory snacks market can be attributed to cultural taste preferences in the Middle East, where savory and subtly seasoned foods are highly valued. The salt flavor enhances the eating experience without introducing unfamiliar tastes, making it appealing across different age groups and demographics. Additionally, the busy lifestyles of consumers have led to a surge in demand for convenient snack options like salted crackers and pretzels, with these segments experiencing a 10% growth in sales compared to the previous year. The affordability of salt-flavored snacks also contributes to their high consumption rates, with average prices remaining stable despite inflationary pressures.
Manufacturers are capitalizing on the popularity of salt by introducing new products and variations. For example, in 2023, several leading snack companies launched low-sodium versions of their salted snacks to cater to health-conscious consumers. These products have already generated $100 million in sales within the first six months of their release. The ongoing innovation in the salty snacks segment is expected to drive further growth, with projections indicating a 5% annual increase in market value over the next five years.
By Category
Fried savory snacks are currently leading the Middle East savory snacks market, outpacing baked alternatives by capturing over 625 market share. This dominance is evident with fried snack sales reaching approximately $1.46 billion in 2023. Popular fried snacks in the region include samosas, falafel bites, and fried potato chips, all of which hold significant cultural and traditional value. For instance, the sale of samosas alone accounted for $200 million in 2023, highlighting their popularity during festive seasons and daily consumption.
The preference for fried snacks over baked ones can be attributed to the unique taste and texture that frying imparts. Consumers in the Middle East savory snacks market often find fried snacks more flavorful and satisfying due to the crispy texture and rich taste resulting from the frying process. Additionally, traditional Middle Eastern cuisine has a long history of frying as a cooking method, which influences snack choices. Fried nuts and seeds, another staple in the region, saw sales of $350 million in 2023, indicating a strong preference for fried over baked processing methods.
However, the growing awareness among consumers about health issues is starting to impact the demand for fried products. The prevalence of obesity in Middle Eastern countries has been on the rise, with the World Health Organization reporting that over 40% of adults in the region are overweight or obese as of 2023. This has led to an increased demand for healthier snack options. Sales of baked savory snacks, though still lower than fried snacks, have grown by 12% compared to the previous year, reaching $1.2 billion in 2023.
The impact of health awareness is prompting manufacturers to innovate and offer healthier fried snack options. For example, the use of healthier oils, such as olive oil, in frying processes has become more common. In 2023, snacks fried in healthier oils accounted for $300 million in sales, reflecting consumer demand for better alternatives. Additionally, portion-controlled packaging has been introduced to help consumers moderate their intake of fried snacks, with sales of these products reaching $200 million this year.
By Packaging Type
Based on packaging type, pouches have flooded supermarkets and general stores in the Middle East savory snacks market, capturing more than 48.8% market share as of 2023. This dominance is primarily due to the convenience, cost-effectiveness, and attractiveness of pouch packaging. The pouch packaging segment in the Middle East savory snacks market was valued at $2.5 billion in 2023, indicating its significant role in the distribution and consumption of snacks in the region. Pouches are lightweight, portable, and easy to handle, making them the go-to packaging type for consumers on the move. The flexibility of pouches allows for various sizes, catering to different consumption needs—from single servings to family-sized packs. In 2023, sales of single-serving snack pouches alone reached $800 million, reflecting the demand for convenience among urban consumers with busy lifestyles. Additionally, resealable pouches have gained popularity, with sales increasing by 15% compared to the previous year, totaling $600 million, as they help in maintaining product freshness and offer prolonged usability.
The cost-effectiveness of pouch packaging in the savory snacks market is another driving factor. Pouches typically require less material to produce compared to rigid packaging options like boxes or cans, resulting in lower production costs. This cost-saving is often passed on to consumers, making snacks in pouch packaging more affordable. In 2023, the average price of snacks in pouch packaging remained competitive at around $1.20 per unit. Manufacturers are also focusing on sustainable packaging solutions, introducing recyclable and biodegradable pouches, which have garnered $150 million in sales, aligning with global environmental concerns and consumer preferences.
Attractiveness and customer appeal play a significant role in the widespread adoption of pouches. The ample surface area of pouches allows for vibrant graphics and marketing messages that capture consumer attention on retail shelves. Snack brands have invested heavily in packaging design, with marketing expenditures on packaging design reaching $100 million in 2023. Eye-catching designs and clear branding on pouches have been effective in influencing purchasing decisions, contributing to increased sales and market share.
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Country Analysis
Saudi Arabia has solidified its position as the largest savory snacks market in the Middle East in 2023, generating over 46% of the region's market share. This dominance is primarily due to country’s largest population in the Gulf Cooperation Council (GCC), with approximately 33 million people as of 2023. Of this population, over 60% are under the age of 30, translating to around 20 million young consumers who are major drivers of snack consumption. Additionally, the country's GDP per capita reached approximately $33,040 in 2023, indicating a robust purchasing power that fuels spending on discretionary items like savory snacks.
Urbanization also plays a significant role in Saudi Arabia's market leadership. As of 2023, about 84% of the population resides in urban areas, equating to nearly 29.4 million urban dwellers with greater access to retail outlets. The expansion of retail infrastructure is evident with over 50,000 retail stores nationwide, including supermarkets, hypermarkets, and convenience stores that stock a wide variety of snack products. Furthermore, the rise of e-commerce has enhanced accessibility, with the number of retail e-commerce users expected to reach 21.5 million by the end of 2023. The presence of over 5,000 fast-food outlets across the country also contributes to the popularity of savory snacks as part of the casual dining culture.
Following Saudi Arabia, the United Arab Emirates (UAE) stands as the second-largest savory snacks market in the Middle East. With a population of around 11.13 million in 2023, the UAE's market is significantly influenced by its expatriate community, which makes up about 88% of the population—approximately 8.8 million people from diverse cultural backgrounds. This multicultural demographic fuels demand for a variety of international snack products. The UAE's GDP per capita is among the highest in the region, at about $52,977 in 2023, reflecting strong consumer spending power. The country is also a major tourist destination, projected to receive over 15 million tourists in 2023, which boosts snack sales. The retail sector is well-developed, with over 7,000 modern retail outlets providing widespread availability of savory snacks.
Qatar, ranking third in the region's savory snacks market, has a smaller population of around 3.07 million as of 2023. However, it boasts the highest GDP per capita globally, estimated at $83,441 in 2023, indicating exceptional consumer purchasing power. Qatar has invested heavily in infrastructure, allocating $200 billion towards the Qatar National Vision 2030 plan, which includes the development of retail spaces. By 2023, the country has over 1.5 million square meters of retail space, including malls and shopping centers that enhance the distribution of snack products. Anticipating major events like the Asian Games in 2030, Qatar expects an influx of over 2 million visitors in 2023, further driving the demand for savory snacks among tourists and residents alike.
Top Players in Middle East Savory Snacks Market
Market Segmentation Overview:
By Product Type
By Flavor
By Category
By Specialty
By Packaging Type
By Packaging Size
By Price Range
By Age Group
By Distribution Channel
By Country
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