According to a new report from global cheese and whey market analysts, Proteus Insight OF U.K., demand for processed cheese is as strong as ever and increasing in the Middle East.
In 2003, the region spanning Morocco in the West to Iran in the East consumed approximately 200,000 tonnes worth US$ 1.1 billion, claims the report that examined the following product sectors - spreads, slices, canned, blocks, snacks and others in more than nineteen markets.
Saudi Arabia, Egypt, Algeria and Morocco were the main markets in 2003, accounting for approximately 65% of volume in 2003, but the other markets have been increasing their share of consumption steadily since 2000.
"In Saudi Arabia, Almarai has made significant investments in its capacities over the past few years and a focused marketing strategy has seen them increasing their share in Saudi Arabia and the rest of the GCC." said Mr. John Meropoulos, Director of Proteus Insight.
Proteus appears certain that the future for processed cheese will see continued development and consumption increase further.
"The established markets such as Saudi Arabia, Morocco and others will continue to expand, but what will likely bring a further boost to the MENA region as a whole is the development of market such as Iraq, Yemen and even white cheese consuming nations such as Iran and Turkey over the next five years," concluded Mr. Meropoulos.
Spreads were by far the most popular sector, accounting for nearly 70% of volume, with portions and glass jars the main form of presentation. Consumption of sliced cheese has been increasing mainly as a result of further development of the food service sector within the region, while the sales of canned cheese is popular in Gulf countries where the severe climate and lack of chilled distribution network in some countries such as Yemen requires the issue of the perishability of the product to be addressed.
French companies like Fromageries Bel, Bongrain and Lactalis are important in the portion spread sector, while Australasian suppliers such as Kraft (Australia) and New Zealand Milk have wider breadth to their product offering including jar spreads, canned and slices. According to the report, local companies in the region are increasing capacity and are beginning to challenge the previously established multinationals.
For further information about Processed cheese MENA 2004 or other Proteus Insight reports visit www.proteusinsight.com
© Saudi Commerce and Economic Review 2004
