GCC Vinegar Market Size, Share & COVID-19 Impact Analysis, By Type (Red Wine Vinegar, Rice Vinegar, Balsamic Vinegar, White Vinegar, Apple Vinegar, and Others), By Distribution Channel (Hypermarkets/Supermarkets, Online Channel, Wholesalers/Direct-from-Manufacturers, and Others), By Application (Food and Beverages, Pharmaceuticals, Agriculture, and Others), and Regional Forecast, 2022-2029

The GCC vinegar market size was valued at USD 16.81 million in 2021. The market is projected to grow from USD 17.20 million in 2022 to USD 22.13 million by 2029, exhibiting a CAGR of 3.67% during the forecast period. Based on our analysis, the market exhibited an average growth of 1.02% in 2020 as compared to 2019. 

Vinegar is produced naturally by fermenting ethanol with acetic acid bacteria. It is largely consumed in numerous food products across households, the HoReCa sector, and the food processing industries. Rising demand for the product from food & beverages supports the GCC vinegar market growth. Furthermore, the consumption of the product in pharmaceutical and personal care products supports product sales. In addition, the demand for the product in the agriculture sector, especially in organic farming as environment-friendly fertilizers and pesticides, is increasing steadily, which pushes the product demand.

COVID-19 IMPACT

Disturbances in Supply Chain Management amid Pandemic Hindered Performance

The COVID-19 pandemic has considerably affected the processed food industry across GCC countries. The socioeconomic situation has affected the consumption patterns of particular products negatively. However, the demand for certain types of vinegar has increased since the pandemic as consumers are requested to home quarantine, which has given them a platform to cook fresh at home. On the other hand, people are requested to stock up packaged food products, which can have a positive impact on the market. However, raw materials shortage and worker scarcity negatively affected the market growth in the initial few months. Since the lockdown imposition, most of the production houses remained closed and a few companies lacked manpower to help produce any newer products.

Vinegar as a food ingredient witnessed a steady spike as people went swish with their culinary experiments to bring home the joys of dining out as many restaurants, cafes, and pubs remained shut to curb the spread of coronavirus. Despite the strong demand for the product, supply chain disruptions led to delays in the product, processing, manufacturing, and demand-supply volatility.

LATEST TRENDS

New Product Launch with Different Flavors to Augment Market Growth

The increase in demand for the product is mainly due to its multiple benefits, which has encouraged local manufacturers to invest in the market with product differentiations in terms of flavor, format, packaging, and others. These condiments are designed to enrich salads and enhance meat and fish flavors. Therefore, the industry players are focusing on new product launches. Furthermore, it also helps to reduce dandruff to improve hair growth and skin lightening. Thus, several personal care manufacturers are introducing hair care and skin care products by adding apple cider vinegar or ACV. For instance, in April 2022, OGX Beauty, an American company, introduced ACV-based hair care products in Saudi Arabia. The inclusion of the product in personal care products is likely to support the GCC vinegar market share expansion.

DRIVING FACTORS

Increasing Applications in Several Industries to Fuel Product Demand

Vinegar has been used for many years as a cooking additive. The acetic acid in the product kills off the microorganisms in several foods, including fruits and vegetables; hence, preserving the food from spoiling. Thus, it is used as a preservative in food and beverage applications. Vinegar is also used directly or added to salads or cooked vegetables, which enhances the taste of the food. ACV assists in improving athletic performance and treating stomachaches. Furthermore, the product has been used to treat wounds, inflammations, coughs, ulcers, and infectious diseases. In addition, the utilization of the product in formulating skin toners and exfoliants is one of the key factors significantly influencing the market. ACV is widely used in pharmaceutical and personal care industries to develop novel health supplements, skin care, and hair care products. It creates a positive outlook for the market. The product also has been used as a corrosive agent, preservative, and herbicide for killing weeds. Furthermore, the wide application of the product in manufacturing disinfectants, stain removers and antiperspirants is contributing positively in enhancing the product demand. Therefore, the increasing demand for the product from multiple end-use applications propels the industry growth.

Rising Health Consciousness among GCC Consumers to Drive Market Growth

Vinegar has been used medically for several years as medical practitioners found natural remedies for various health problems associated with digestion. ACV is majorly used in supporting the digestion system and also helps in controlling or monitoring blood sugar levels. The product has gained high popularity in recent years due to its benefits in weight loss. The product’s antiseptic property makes it a powerful defense against bacteria, viruses, and fungus. Its antifungal properties can help to treat several scalp problems, including itching and dandruff. Furthermore, it is a pain reliever believed to reduce high blood pressure and lower bad cholesterol. The product also aids in flushing toxins from the body and eliminating digestive yeast. Growing health consciousness of consumers along with additional health benefits of natural ingredient-based vinegar is supporting the increased usage.

RESTRAINING FACTORS

High Dependency on Imports to Meet Regional Demand to Impede Growth

GCC countries are highly dependent on international markets to meet the regional demand for the product, primarily on account of limited technological advancements, presence of a few market players, and raw materials inadequacies. Higher dependence on imports has exposed the region to product price fluctuations. The unstable and volatile import price has several widespread implications on vinegar end-users in the GCC marketplace. The international player’s stronghold on the market creates a huge competition for regional key players to penetrate the market. Furthermore, poor infrastructure facility, inadequacy in raw materials supply, and lack in technology advancements restrict the new entrants to the industry. High price volatility of the product and a few regional players’ presence in the regional market may restrict the industry growth in the coming years.

SEGMENTATION

By Type Analysis

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Balsamic Vinegar Segment to Hold Major Share Backed by Availability of Premium Quality Products

By type, the market is divided into red wine, rice, balsamic, white, apple, and others.

Balsamic vinegar is commonly used as a food additive in numerous foods, including salads, fish, and chicken due to its distinct and bold flavor. Owing to a distinct zesty and sweet flavor, balsamic vinegar has been used for drizzling over sweet and savory dishes to enhance the food’s taste. Moreover, it can be mixed with olive oil for a classic balsamic vinaigrette dressing. Moreover, numerous Italian vinegar manufacturers, such as Ponti Spa and Di Nigris Group, offer premium quality vinegar products, including balsamic, rice, and apple cider, through different suppliers across GCC countries. Thus, the abundant availability of the product across several distribution channels in GCC countries is helping the product to expand with a notable growth rate.

Apple vinegar is one of the most widely used ingredients in the food & beverage and pharmaceutical industries. It is used for flavor and preserving food. It has a golden hue and can add a tart and subtle fruity flavor to marinades, salad dressings, tea, coleslaw, and chutneys. It is significantly consumed in the pharmaceutical field due to its antimicrobial properties. It also helps to improve skin tones and prevent infections. Thus, it is becoming popular in personal care applications. The segment is expected to grow at a noticeable pace during the forecast years.

By Application Analysis

High Demand from Food and Beverages Segment due to Multiple Applications of Vinegar in Food

By application, the market is divided into food and beverages, pharmaceuticals, agriculture, and others.

The strong demand from food and beverage applications positively impacts the expanding this market. The product is largely used in food applications globally, including in GCC countries. It may be defined as a condiment made from various sugary and starchy materials by alcoholic and subsequent acetic fermentation. The product helps to improve flavor and to preserve food. The acidity of vinegar enhances the flavor of food. Thus, it is used in several food products such as salad dressings, marinades, sauces, mayonnaise, and ketchup. It also breaks down the chemical structure of protein and may help to change the texture of foods. Thus, it is used as a marinade to tenderize meats and fish. Therefore, it is significantly used across food applications.

Over centuries, it has been used medicinally to treat diseases, including the healing of wounds, poison, croup, stomachache, high fever, edema, infections, ulcerations, and others. Several researchers suggested that regular consumption of vinegar has some beneficial effects on digestion, appetite stimulation, weight management, antimicrobial, recovery from exhaustion, cardiovascular disease, regulating blood pressure, and antidiabetic. Thus, the application of the product in pharmaceutical products is predicted to expand significantly in the coming years.

By Distribution Channel Analysis

Rising Demand from Food Services Elevates Wholesales/Direct-from-Manufacturers Segment to Exhibit Highest CAGR in the Forthcoming Years

By distribution channel, the market is divided into hypermarkets/supermarkets, online channel, wholesalers/direct-from-manufacturers, and others.

The wholesalers/direct-from-manufacturers segment was the leading distribution channel for vinegar in 2021. Importers dominating the market partner with regional suppliers to cater to their customer's requirements. They tie up or partner with large-scale food processors and pharmaceutical product manufacturers to sell the products in bulk. The manufacturers also provide customized product quality and quantity to meet their customer's needs. Thus, the segment holds the largest share in the market. Hypermarkets/supermarkets held the second largest share in the segment. The large space in hypermarkets/supermarkets allows different promotional displays to attract customers' attention. This format also offers convenience in shopping to the consumers.

The online channel segment in GCC countries has been continuously growing, with Noon and Amazon as some of the major players recently entering the market. There has been a strong trend toward buying food ingredients online more recently, especially among youth, as the sector has developed with app-based online shopping and delivery services.

REGIONAL INSIGHTS

The increasing popularity of fast food, rising disposable income, rapid urbanization, and the impact of western cuisine and culture have supported the consumption of the product in GCC countries. Presently, Saudi Arabia holds the major share and is projected to grow at a CAGR of 4.25% during the forecast period. The growing product acceptability, change in consumers’ interest in food consumption, and investment by international food companies, coupled with changes in consumer taste due to western influences, contribute to the development of authentic cuisines in the region. Therefore, numerous leading food service providers use vinegar as a taste enhancer in their products to accommodate changing consumer tastes. This will allow more manufacturers to enter the Middle East & Africa market and offer vinegar products for food and beverage usage, thereby contributing to the market growth.

The UAE holds a prominent GCC vinegar market share. Vinegar is commonly and traditionally used as a medicine for burns and skin inflammation in the country. As it helps to maintain blood sugar levels and assists in reducing body weight, the consumption of the product witnessed a surge among health and fitness-conscious consumer groups in the UAE. The increasing utilization of natural ingredients in the production of several food products is driving the consumption of the product within the country.

The strongly evolving retail sector across Oman and other GCC countries is assisting the market growth. Global players, such as Kraft Heinz, De Nigris Group, and Ponti SpA, focus on penetrating the market through suppliers and retailers. The increasing retailers' focus on expanding geographical presence additionally helps these global and regional players to reach a larger consumer base. For instance, in October 2020, Lulu Group International, a UAE-based multinational hypermarket chain, opened its new hypermarket at Markaz Al Bahja, a shopping mall in Muscat, Oman.

KEY INDUSTRY PLAYERS

Focusing on Novel Product Launches to Help Companies Expand their Product Lines

The market exhibits a fragmented structure with the presence of numerous small and medium enterprises. However, a few players in the industry are embarking on expanding their footprint in the market by utilizing their huge clientele base, unique product offerings, strong brand loyalty, and distribution network. In some GCC countries, consumers are more conscious of the quality of the product. Therefore, they prefer known brands over new or cheaper products. This is the major factor assisting well-known brands in expanding their business within the marketplace. The industry growth will be driven by several strategies adopted by the companies such as strengthening distribution channels, emphasizing promotional activities, and strengthening e-commerce presence to achieve a competitive edge.

LIST OF KEY COMPANIES PROFILED:

• Al Faris Food Industries Ltd (Saudi Arabia)


• Bafarat Industrial Group (Saudi Arabia)


• Corex S.p.A. (Italy)


• De Nigris Group (Italy)


• Goodyco (Saudi Arabia)


• MR Food Industries LLC (UAE)


• Ponti SPA (Italy)


• Pure Food Processing Industries (PFPI) LLC (UAE)


• The Kraft Heinz Company (U.S.)


• Yamama (Lebanon)

KEY INDUSTRY DEVELOPMENTS:

• June 2022: Ponti S.p.A., one of the leading Italian manufacturers and distributors of vinegar, invested nearly USD 21.35 million to upgrade its production plant. The company also planned to install novel machinery in 4.0 technologies in its two sites in Ghemme and in the factories of Paesana (Cuneo), Dosson di Casier (Treviso), Vignola (Modena), and Anagni (Frosinone). The company focuses on expanding its production plant to meet increasing vinegar and other culinary condiments demand globally, including GCC countries, South Africa, and Latin American countries.


• September 2021: Al Faris Food Industries Ltd., one of the leading culinary condiments producing companies, signed a partnership agreement with Dubai’s private-equity vehicle, the Gulf Japan Food Fund (GJFF). The partnership with the Gulf Japan Food Fund helps to scale up the company’s business to the next level and expand its footprint across Saudi Arabia and the wider MENA region.


• September 2020: The Kraft Heinz Company, one of the leading food and beverage manufacturers, selected Carat, U.S.-based global advertising and integrated marketing agency, to develop media planning and advertisement content for the company across Canada and international zones, including the MENA region.


• February 2020: Corex S.p.A, an Italian company involved in the production, promotion, and distribution of Italian food, participated in the Gulfood trade event. The Gulfood is one of the world’s largest annual food and beverage trade exhibitions, attracting more than 98,000 visitors from over 190 countries around the world.


• January 2020: The Kraft Heinz, a U.S.-based multinational company specializing in manufacturing and marketing culinary condiments, signed an agreement with the UAE distributor, BidFood, to distribute the company’s food service products, including ketchup, vinegar, and mayonnaise across the UAE.

REPORT COVERAGE

An Infographic Representation of GCC Vinegar Market

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The research report includes quantitative and qualitative insights into the market. It also offers a detailed regional analysis of the market size and growth rate for all possible market segments. The report provides various key insights on market, an overview of related markets, competitive landscape, recent industry developments such as mergers & acquisitions, regulatory scenario in critical countries, and key trends in the industry

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