Middle East offers good opportunities for consumer goods, with residential water purifiers, electronics accessories, and OLED & LED displays witnessing strong demand, a report said.

Middle East remains a lucrative market for businesses that are willing to invest time and resources in studying the unique opportunities it has to offer, added the Middle East Consumer Goods Outlook from Future Market Insights, an award-winning global research and consulting firm.

According to IMF’s World Economic Outlook Database, Middle East’s accounted for over 6 per cent of the world’s total exports, representing an impressive $1.3 trillion in value (2012 figures), the report said.

Key findings

Residential water purifiers

Sales of residential water purifiers have skyrocketed, with urban centres accounting for bulk of the demand, the report said, noting that while sales are also growing steadily in Tier II cities, the rural area, where water quality is the poorest, still has low penetration of water purifiers.

According to the research, the Middle East residential water purifiers market was valued at $414 million in 2014, and is anticipated to increase at 6.8 per cent in the next decade. Demand is driven by Saudi Arabia and Turkey, which collectively account for over half of global sales of residential water purifiers in the Middle East.

Also, consumers have a favourable perception towards RO water purifiers, and this trend doesn’t seem to change anytime soon, the report noted.

Key players in the Middle East residential water purifiers market, including Kent, Eureka Forbes, Panasonic, and LG are sensitising consumers on the potential health impact of drinking contaminated water. Strengthening distribution networks remains a key challenge for businesses, and through strategic tie-ups, market leaders are engaged in consolidating their position.

LED & OLED displays

Governments in the Middle East, especially in GCC, have been encouraging foreign players to set up their offices in the region in bid to boost the services sector in the region. Middle East has been in the midst of a construction boom for a long time, with skyscrapers and colossal shopping malls becoming a ubiquity.

Use of lighting displays in shopping and business centres has also witnessed a robust increase, with LED & OLED displays being highly sought-after. According to the research, the Middle East LED market is anticipated to increase at 14.3 per cent CAGR through 2025, whereas the OLED segment will grow at 4.9 per cent CAGR.

As is the case in residential water purifier market, Saudi Arabia and Turkey will continue to lead sales, with GCC countries accounting for a significant share of the overall Middle East market.

Electronic accessories

The consumer electronics sector in the region is going through a period of growth, with strong smartphone sales ramping up demand for power banks, wireless earphones, and protective cases. The demand for electronic accessories is primarily driven by the mobile phone accessories segment, which accounted for over 60 per cent of total sales in 2015.

The electronics accessories segment is poised to increase at over 6 per cent CAGR, with bulk of the demand coming from GCC. The electronics accessories market in the Middle East is highly fragmented, with local players accounting for a significant share of the market.

Matching the low prices offered by local players is proving to be a challenge for major players, such as Samsung, Sony, Toshiba, and Panasonic. – TradeArabia News Service