Flavour forecasts in the GCC

IN RECENT times, flavours have gone through considerable changes in terms of innovation and variation. The food industry within the GCC is opening up to new technologies and concepts, and this is helping the flavours market develop new varieties. At the same time it is intensifying competition.

According to the new analysis Strategic Assessment of the GCC Food Flavours Market from Frost & Sullivan, the food flavours market in the region is expected to double in the next five years, prompted by strong developments in products and technology. Greater consumer awareness in flavours and variants is also forcing manufacturers and producers to be innovative and tap the ever-demanding market. As per Frost & Sullivan’s analysis, the market earned revenues of USD145.6 million in 2011 and is estimated to reach USD 298.9 million in 2017.

“The higher revenues are mainly due to increasing demand for flavourings by fast-moving consumer goods companies. Dairy and beverage are the other growing application sectors, owing to the increased domestic consumption and consumers’ desire for novel flavours,” said Gayathry Ramachandran, senior consulting analyst, Food Practice at Frost & Sullivan. “Overall, new techniques that revamp flavouring applications, along with new product developments, are vital to maintain an advantage in this highly competitive market, ” Mr Ramachandran said.

The higher purchasing power of the regional residents coupled with mergers and acquisitions/large investments in R&D have been a huge boost to the market. Despite the uneven distribution of wealth, the overall improvement in the economy and general lifestyle has benefitted the food and beverages market which has automatically created opportunities for the flavours market. However, few subsectors such as confectionery and bakery products containing advanced variants and other functional ingredients are still considered premium and high-priced.

Demographics impact changing flavours
The change in flavour variants and preferences over the years is triggered by a number of factors. Subsectors within the food and beverage industry are influenced by different factors, but one that has played an integral role is demographics. The diversity in preferences amongst the indigenous and expatriate populations within the region, for example, has prompted companies to cater to all sorts of customers.

National Food Industries LLC understands this. The company deals in fresh potato chips, potato-based pellets, cheese corn balls, cheese tortilla chips, cheese corn curls and fruit cup drinks under the brands Mr. Krisps, Emirates Pofaki, PufakAbusaa, Bakeman’s and Sindbad, products that may use several kinds of flavours and flavourings.

“Flavour preferences are mainly based on demographics,” explains said Piyush Mahesh, administration and sales director at National Food.“They are not a major health concern due to the relatively inert nature of savoury flavours we use and the small percentage that actually gets applied on the product. It is mainly a sensory ingredient.”

Mr Ma h e s h adds,“Ta s t e and preferences have a natural tendency to evolve over time; we have seen this happen at many times in our 35-year history. The indigenous population has adapted to these changes to quite an extent. In the snacking sub-segment, the region has very subtle preferences wherein natural (plain salted), curry (spicy) and cheese flavours tend to move quite well.”

Another company that has seen demographics influence flavours is Al Islami Foods.This company is a foods conglomerate entailing Al Islami Foods International, Al Islami Foods UAE, Al Farooj Fresh (a fNike Roshe