GCC FMCG and Healthcare market to hit $400bn by 2018

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GCC FMCG and Healthcare market to hit $400bn by 2018
GCC FMCG and Healthcare market to hit $400bn by 2018

The FMCG and Healthcare markets in the GCC (Gulf Cooperative Council) countries are projected to cross USD 400 billion by 2018. This provides huge opportunities for Jafza based companies said Jafza officials at a recently held Strategic Customer Forum organized by Jafza for the companies in the FMCG and Healthcare sector at the free zone.

This was latest in the series of sector specific forums held by Jafza as a part of its ongoing efforts to maintain strategic communications with its customers.   The forums provide an ideal platform to discuss global trends and opportunities while providing an opportunity to Jafza management and Jafza companies to enter into a comprehensive dialogue to find ways to take optimum advantages of emerging opportunities and also to understand how Jafza, as an enabler, can help the sector grow.

Ibrahim Mohamed Al Janahi, Deputy CEO of Jafza and Chief Commercial Officer of Economic Zones World (EZW), the parent company of the free zone, commenting on the promising FMCG market outlook said:

“The GCC retail market is poised to cross USD 270 billion mark in the next 5 years. The growth is largely driven by food and beverages sector, which accounted for almost half of the GCC’s retail market in 2012. The value of the GCC’s healthcare market during the same period is expected to cross USD 133 billion which will enable the FMCG and Healthcare market to exceed USD 400 billion. This provides huge opportunities for Jafza based companies in the sector. Since the growth in the sector is largely driven by fast-growing young population, increasing disposable income and per capita spending, as well as, the people’s changing consumption patterns, the growth momentum is expected to stay for a longer time. We must take maximum advantage of emerging opportunities in the region.”

Aljanahi’s observations were based on a recent forecast by Alpen Capital which noted that GCC retail industry is expected to cross the USD 270 billion mark by 2016. According to a recent Frost & Sullivan report the healthcare market in the GCC is to grow to over USD 133 billion by 2018. Frost & Sullivan said healthcare spending in the GCC is projected to grow at a compound annual growth rate of 10.3 per cent from 2010 to 2018 due to its expanding population, higher incidence of lifestyle diseases, and deeper insurance penetration.

Senior officials from Jafza and the top FMCG and Healthcare companies such as Al Ghurair Foods, Food Specialties Limited, Nestle, Wild Flavours, Colgate-Palmolive, Beirsdorf, Roche Diagnostics, Quest Vitamins and Pharmatrade among many others joined the discussions at the forum.

Jafza is currently home to more than 700 world’s finest companies in the FMCG and healthcare sectors which includes names such as Unilever, Proctor & Gambles, Nestle, Colgate Palmolive, FSL, Alokozay, Mars, Gulf Food Industries Company, Beiersdorf, Roche, Quest Vitamins and Pharmatrade among others. The sector has seen four-fold growth in the number of companies in the last 10 years growing from 175 companies in 2002 to 709 in 2012. The sector is estimated to have generated trade worth over USD 5 billion in 2012 posting a growth of over 50% in the last four years.

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