June 18, 2024

The Middle East Bio-chemicals Market is Driven by Increasing Food Processing Industry

The bio-chemicals industry in the Middle East region primarily comprises food additives and enzymes that are widely used across various applications such as pharmaceuticals, food processing, nutraceuticals, and personal care. Bio-chemicals provide better properties and functional benefits compared to conventional chemicals. They offer advantages such as eco-friendliness, sustainability, and biodegradability. Bio-chemicals play a key role in improving food quality, shelf-life, safety, and nutrition. The increasing demand for processed and packaged food coupled with rising health-conscious population in the Middle East is driving the growth of the regional food processing industry. The global Middle East Bio-chemicals Market is estimated to be valued at US$1,998.5 KT in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends

One of the key trends witnessed in the Middle East bio-chemicals market is growing focus on R&D activities. Manufacturers are investing heavily in upgrading technologies to develop new and innovative bio-based products. They are also establishing partnerships and collaboration with research institutes to expedite product development. For instance, in 2019, Evonik Industries partnered with King Abdullah University of Science and Technology (KAUST) to conduct joint R&D for developing sustainable products from renewable resources. Another key trend is shifting preference towards natural and eco-friendly ingredients in various industries such as food processing, personal care, and pharmaceuticals. Stringent regulations regarding the use of hazardous chemicals is also encouraging end-users to replace petrochemicals-derived products with bio-based alternatives.

Porter’s Analysis

  • Threat of new entrants: The threat of new entrants in the Middle East bio-chemicals market is moderate owing to the requirements for high capital investments and established distribution networks of existing players.
  • Bargaining power of buyers: The bargaining power of buyers is high due to the presence of many established buyers and the fragmented nature of the market.
  • Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials can be easily sourced from different regions and there are no major dependencies on a specific type of raw material.
  • Threat of new substitutes: The threat of substitutes is low as bio-chemicals have limited substitutes and switching costs for buyers are relatively high.
  • Competitive rivalry: Competition in the Middle East bio-chemicals market is high among existing players.

Key Takeaways

The global Middle East bio-chemicals market is expected to witness high growth during the forecast period of 2023 to 2030.

Regional analysis – The Middle East region is expected to be the fastest growing market for bio-chemicals during the forecast period. Saudi Arabia dominates the bio-chemicals market in the Middle East region holding around 30% of the total market share owing to the presence of manufacturing facilities of major players in the country.

Key players operating in the Middle East bio-chemicals market are BASF SE, Clariant A.G., Evonik Industries A.G., Total S.A., Cargill Inc., Biolive, Saudi Biodiesel, Saudi Bio-Acid Company, Sain Bag, and Neutral Fuels.