Mansci Update 2013 – High Expectations from 2014!

After an exciting 2013 we at ManSci are really looking forward to what 2014 will bring to the Dairy and Beverage Industries in our dynamic region.

2013 was indeed an interesting year. The UAE sawinnovative changes in packing with Al Ain Dairy moving to tetra tops for both 500ml and 1litre chilled milk at the end of 2013. The new packaging, which is widespread in Europe, has the advantage for the consumer of having a tamper-evident opening and benefits everyone by being more environmentally friendly with 60% of the packaging being made from renewable sources. The cost savings over using PET preforms will be significant…who will be the next to follow suit?

The UAE also saw its first exports of Camelicious milk leave its shores in 2013. The health benefits of Camelicious milk could appeal to the market and certainly the novelty factor associated with camel milk could lead to interesting feedback from the European market. The move from being an import only dairy country to having some exports to Europe could be a turning point for the local dairy industry – we look forward to 2014 interviews with the people who know!

The awarding of Expo 2020 to UAE has already started to impact the mind-set of businesses here and is expected to bring an influx of expats – if not directly involved in developing the food and beverage market, certainly consuming products from it. This growth factor will be interesting to watch as it develops – leading to new innovations and increased competition across the region. 2013 also saw Sidel opening a new office in Dubai, offering greater after-sales support for customers in the region and sure sign of continued strong growth for them in the region.

Nestle’s investment in a new ice cream facility in Egypt in 2013, costing €21million, is further evidence of the attractiveness of this market. Production is increasing to supply a growing Middle Eastern market, with exports increasing year on year. Egypt also saw the launch of the“Beyti Tropicana” dual branded juice in single-serve SIG packaging. Tetra Pak in Egypt are also pioneering a recycling plant. In a part of the world where waste management receives little attention, much of the population will have to be educated to waste separation and disposal and an entire waste collection stream will have to be built and managed to allow Tetra Pak to launch the first Used Beverage Can (UBC) recycling plant in Egypt. Strong growth in the milk, juice and cheese sectors will also lead to a growth in materials to be recycled…. We look forward to seeing how this innovation progresses. Tetra Pak’s UBC recycling plant is due to begin operating in the later part of 2014.

Saudi Arabian company Al Wazeen Trading announced a joint venture with Irish Dairy Board for a cheese factory in Riyadh. As the fifth largest dairy importer in the world, local production of cheese should certainly go well for both Al Wazeen and IDB and we look forward to seeing growth in the entire GCC market from this enterprise.

The emergence of Iraq as a more stable and growing market (with a population of 33million!!) will continue to provide plenty of opportunities for growth, both for dairy and beverage companies.Concerns continue around the quality of drinking water in Iraq, leading to strong growth in most areas of packaged beverages. The government are making a concerted effort to attract foreign investors, especially to help boost the small private sector. While red tape and headaches are all but guaranteed for anyone looking to grow in this market, the size of the opportunity (did we mention the population is bigger than Saudi Arabia??) as well as the expected rate of growth make this a country worth stopping for.

Oman too is seeing strong growth. With another rise in minimum wage and further implementation of the Omanisation program there are many changes afoot for local businesses. Strong population growth with a large influx of foreign workers, due to the heavy investment in infrastructure, is leading to much better roads all across the country making it easier to transport goods. Further investment in heavy industrial projects too has gotten underway, with a new port being recently completed and the establishment of a dry dock. The growing population, as well as the improved ease of transport around the country, will make this dairy hub ‘one to watch’ for 2014.

Algeria sees the continuance of subsidies in the dairy industry. While the market is changing, with a long term view to increase local production, imports still dominate this market. We look forward to seeing how Elopak have impacted local consumers. Their entry to the market, with LaiterieBetouche, is the first move away from plastic pouches traditionally used by liquid milk manufacturers and heavily subsidised by the government. The convenience of cartons, along with growing consumer spending power and increasing demand for value added products, will surely see an increase in the range of products available, as well as an increase in the level of competition in the market from new and expanding entrants.

 

The Tunisian market is reaching saturation point and with the local dairy market continuing expansion amid generous subsidies by the government, disposal of excess milk is a new issue facing local producers. We look forward to our 2014 liquid data showing changing trends in this market and the certain innovation that will emerge in it.

 

Iran will be a country to watch in 2014. The interim deal reached between Iran and the Superpowers in November last year is expected to open an investment floodgate of international businesses seeking to capitalise on a new market whose population is the 17th largest in the world. Will 2014 be the year this happens? We are holding our breath…..

 

We are also really excited about the imminent publication of our Yemen2014 report – a market in turmoil that has seen vast political changes over the last number of years. The country is displaying a very positive mood and the economy is showing signs of growth. Yemen still has a long way to go to reach stability. The draft constitution is under construction and elections later this year will test the mettle of the nation. We are seeing growth in both the dairy and non-alcoholic beverage sectors – and we look forward to publishing a detailed analysis of our data shortly.

 

As Comblibloc see strong growth in their African markets, where many consumers don’t have the luxury of refrigeration devices, UHT milk in particular, is doing very well. Combibloc expect exponential growth of their aseptic packaging in this exciting market.

 

At ManSci we’re also looking to new African markets – with brand new reports coming in 2014 as we venture into East Africa….it promises to be quite a year!

 

Happy New Year everyone.
ManSci TEAM

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