Food Tech - Industry - MEA Market, Share and Trends 2023-2028

Summary of Food Tech

The Middle East and Africa (MEA) region has seen growing investment and startup activity in the agrifood tech space in recent years. Driven by large populations of young consumers seeking healthier and more sustainable food options– companies are developing solutions across alternative proteins, precision fermentation, supply chain platforms and indoor farming. Countries like the UAE, Saudi Arabia, Egypt, Nigeria and South Africa have emerged as top markets attracting venture capital.

Middle East & Africa’s food market is growing faster than the packaged food industry– owing to shifting customer tastes toward a more natural and functional offering to adopt a more holistic approach to a balanced diet. The growing number of individuals altering their eating habits and embracing a balanced nutritional diet and active lifestyle is a major element driving the growth of this food technology market.

People worldwide are realizing the value of a healthy diet, exercise, and regular physical activity–which is critical for the market’s growth. However, high prices of health and wellness foods high maintenance cost may hamper the market’s growth. Based on our estimates, we can say that the Middle East and Africa’s FoodTech industry is forecasted to be a $27.74 billion industry in 2029 from $19.6 billion in 2023 with a CAGR of 6.53%.

With a young population expected to reach over 1.3 billion by 2050– the MEA food tech industry is well-positioned for strong continued growth if current investment and innovation trends continue. The alternative protein sector in particular shows significant potential.

Recent Trends and Insights

Food tech investment in MEA reached over $300 million in 2022 according to recent reports, up significantly from previous years. The UAE received the bulk of funding with startups there raising over $150 million across 30+ deals. Saudi Arabia also saw major funding rounds, including a $35 million raise by cultivated meat startup Qlimate.

Cultivated meat and plant-based companies are attracting interest due to religious restrictions in many Muslim-majority nations. Egyptian startup Mushroom Labs raised $10 million for its mycoprotein products. UAE’s Lulu Group launched an R&D center to develop cultured meat.

Blockchain platforms are gaining traction to provide traceability into fragmented agricultural supply chains across Africa. Nigeria’s Farmcrowdy raised $33 million to connect smallholder farmers to buyers.

Countries are launching initiatives to boost the agrifood sector through technology. Egypt’s National Food Safety Authority aims to invest $1 billion in agrifood tech parks and R&D centers over the next 5 years.

Product Insights

Many companies are dwelling and experimenting with Alternative proteins. Companies are developing cultivated meat, fermented dairy, egg and seafood products to meet demand from health-conscious consumers and those with religious restrictions. Egyptian startup Mushroom Labs produces mycoprotein products.

Companies are using fermentation to produce novel ingredients like non-dairy casein, whey and egg proteins. Controlled environment agriculture is gaining interest due to scarce land and water resources. UAE-based Indoor Farmers specializes in hydroponic and aeroponic greenhouses.

The rising consumption of organic food made from natural ingredients over inorganic food products are opening up new chances for the Middle East & Africa’s food market– whereas high competition among market players may create a challenge for the market’s growth.

Blockchain and IoT solutions provide traceability across fragmented agricultural supply chains in Africa and the Middle East. This helps connect smallholder farmers to new markets.

Key Companies

Some major players within this vast domain of industry are

• Maspex
• PepsiCo
• General Mills Inc.
• Mars, Incorporated
• Nestlé
• Danone
• Abbott
• Huel Inc.
• GSK Group of Companies
• Clif Bar & Company
• Yoplait USA, Inc.

Regional Analysis

Founded in 2022 by Salman Attieh, Yassir El Ismaili El Idrissi, Shehab Mokhtar, and Ahmed Eldemerdash, NOMU has rapidly expanded and now operates in four countries, including the Kingdom of Saudi Arabia, Egypt, Tunisia and Morocco. The startup has ambitious intentions to grow to 50 cities by 2025.

Dubai is emerging as a hub for food tech startups and investment in the region. Companies are testing new technologies like cultivated meat. The government is supporting development of alternative proteins and precision fermentation to meet future food security needs. Local startup Qlimate raised $35M for its cultivated meat R&D.

Egypt has a large population and is focusing on developing its agrifood industry through new technologies. Companies like Mushroom Labs are commercializing alternative proteins. As the largest economy in Africa– Nigeria has seen growth in agrifood startups applying blockchain and IoT to improve supply chain transparency and connectivity for smallholder farmers.

South Africa’s developed markets and research institutions also make it well-positioned for food innovation in areas like plant-based and fermentation technologies.

Market Segmentation

By Type:

• Traceability/supply chain management technologies
• Food safety and quality inspection systems
• Industrial IoT solutions for monitoring and control
• Farm management software
• Manufacturing execution systems
• Industrial controls and automation equipment

By End user:

• Restaurants, Caterers, Meal Prep Companies and Packaged Food Producers
• Food and beverage
• Agriculture and livestock
• Food processing and manufacturing
• Packaging
• Logistics and distribution

By Enterprise Size:

• Large food and beverage companies
• Small and medium food producers
• Startups and emerging foodtech firms

By Country:

• Saudi Arabia
• Iran
• United Arab Emirates
• Israel
• Egypt
• Iraq
• Qatar

Our Methodology

We have offered a well-founded review of the Middle East and Africa’s regional foodtech market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.