Why Sports Supplements Brands Thrive on Amazon in the Middle East
The Middle East has witnessed a surge in the popularity of sports supplements, with Amazon emerging as a key player in this burgeoning market. As fitness enthusiasts and health-conscious consumers seek ways to enhance their performance and well-being, products like whey protein, creatine, and multivitamins have gained significant traction. This trend has created a golden opportunity for sports supplement brands to thrive on Amazon's platform in the region.
Amazon's dominance in the Middle Eastern e-commerce landscape has paved the way for sports supplement companies to reach a wider audience. The platform's user-friendly interface, reliable delivery services, and vast product range have made it easier for consumers to access a variety of supplements, from protein powders to amino acids. Moreover, the growing demand for vitamins, omega-3, and pre-workout formulas has prompted brands to develop innovative products and marketing strategies to stand out in this competitive marketplace.
The Rise of E-commerce in the Middle East
The Middle East has experienced significant growth in e-commerce over the past decade, transforming the retail landscape across the region. Advancements in technology, changing consumer behaviour, and increased internet penetration have made e-commerce a key driver of economic growth 1.
Increased Internet Penetration
The rise of e-commerce in the Middle East has been fuelled by a substantial increase in internet penetration. According to the International Telecommunication Union (ITU) World Telecommunication/ICT Indicators Database, there has been a notable uptick in the percentage of individuals using the internet in the region 2. This growth in internet usage has paved the way for a thriving digital marketplace.
Smartphone Adoption
The shift towards a digital lifestyle in the Middle East has been largely driven by the widespread adoption of smartphones. The continual development of 5G technologies and increased use of mobile internet are anticipated to drive substantial demand for advanced smartphones 3. By 2028, the number of smartphone subscriptions in the Middle East and North Africa (MENA) region is expected to exceed three-quarter billion 3.
While 4G is currently the leading mobile technology in MENA, 5G technology is estimated to make up 17 percent of all connexions in the region by 2025 3. This technological advancement has led to a significant increase in mobile data traffic, with monthly mobile data usage per smartphone in the Middle East and North Africa projected to rise from 2011 to 2028 4.
Digital Payment Solutions
The growth of e-commerce has been accompanied by a surge in digital payment solutions. According to the World Bank's Global Findex Database, just over half the population over the age of 15 in the Middle East and North Africa reported having an account at a financial institution in 2021 5. However, there has been a significant uptick in the adoption of digital financial services, especially after the Covid-19 pandemic. In 2021, 45% of the population over the age of 15 in the Middle East and North Africa had made or received a digital payment, up from 34% in 2017 5.
Growing Demand for Sports Supplements
The Middle East has witnessed a significant surge in the demand for sports supplements, driven by various factors that reflect changing lifestyles and increasing health consciousness among the population.
Health and Fitness Trends
A growing awareness of the importance of physical fitness and overall well-being has become a major driver for the sports nutrition market in the Middle East. Consumers are increasingly seeking products that can support their fitness goals and complement their active lifestyles 6. This shift towards healthier living has expanded the target market for sports nutrition products beyond professional athletes to include a wider consumer base 7.
In the United Arab Emirates (UAE), the health and fitness sector has shown remarkable growth, with an increasing number of fitness facilities and members 8. Interestingly, approximately 45% of Europeans engage in intense sports activities at least once a week, indicating a similar trend in the region 7. This surge in sports participation has created a significant demand for sports nutrition products as individuals look to enhance their performance and achieve better results 6.
Urbanisation and Modern Lifestyles
Urbanisation in the Middle East has reshaped consumer lifestyles, leading to more sedentary habits and, consequently, an increased interest in fitness 9. As urban populations seek convenient ways to stay fit, there has been a heightened demand for sports nutrition products that aid in recovery, muscle development, and energy enhancement.
The prevalence of lifestyle-related health issues is rising at an alarming rate in the UAE, with approximately 77% of deaths attributed to non-communicable diseases 8. This has led to a growing awareness of the need to combat sedentary behaviour and excess weight, further driving the demand for fitness services and sports nutrition products 8.
Rising Disposable Income
The UAE's status as one of the world's wealthiest states, with one of the highest gross domestic products per capita worldwide, has contributed to the tremendous growth of the local fitness market over the past decade 8. This economic prosperity has attracted both residents and foreign entrepreneurs to the sports nutrition industry.
The health, fitness, and wellness sector in the UAE is expected to exceed USD 0.6 billion by 2025, showcasing its significant growth potential 8. This economic growth, coupled with increasing health consciousness, has created a fertile ground for sports supplement brands to thrive in the Middle Eastern market.
Amazon's Dominance in the Middle East Market
Acquisition of Souq.com
Amazon's journey to dominate the Middle Eastern market began with its acquisition of Souq.com, a leading e-commerce platform in the region. The deal, valued at $580 million in cash, was completed in 2017 10. This strategic move allowed Amazon to establish a strong foothold in the Middle East's growing e-commerce sector. Souq.com boasted an impressive reach of over 45 million visitors per month and offered a vast range of 8.4 million products across 31 categories 10.
Rebranding to Amazon.ae
In May 2019, Amazon officially launched its UAE operations as Amazon.ae, replacing the Souq.com platform. This rebranding effort was positively received by UAE residents, as evidenced by YouGov BrandIndex data. The launch campaign resulted in a significant increase in Amazon's Attention score, rising by 7.3 points in just one month 11. The transition also led to improvements in other brand metrics, including Reputation, Value, and Impression scores 11.
Investments in Logistics
To support its expansion in the Middle East, Amazon has made substantial investments in logistics infrastructure. In 2022, the company announced plans to establish an AWS Region in Saudi Arabia, demonstrating its commitment to the region's digital transformation 12. This investment aims to provide high levels of security and resilience for cloud services, catering to the growing demand across the Middle East 12.
Strategies for Sports Supplement Brands on Amazon.ae
Sports supplement brands can thrive on Amazon.ae by implementing effective strategies. Product localisation is crucial, as the Middle East and Southeast Asia sports nutrition market is expected to reach US$ 2,197.11 million by 2033, growing at a CAGR of 9.8% 13. Brands should tailor their products to meet the specific needs of the region's health-conscious consumers.
Influencer partnerships have become a powerful tool for reaching target audiences. Collaborating with nano and micro-influencers who have expertise in health and wellness can yield impactful results 14. These influencers can authentically connect with consumers and influence their opinions about sports supplements.
Targeted advertising on Amazon is essential for visibility. Sponsored Products help reach high-intent shoppers actively looking for related products 15. Sponsored Brands allow brands to grow consideration for their product collections among interested shoppers 15. Additionally, Sponsored Display ads can reach audiences beyond active Amazon shoppers, extending the brand's reach 15.
By optimising product listings, utilising Amazon's advertising tools, and leveraging social media, sports supplement brands can maximise their visibility and sales on Amazon.ae 16. Regular monitoring and adjustment of selling strategies based on customer behaviour are key to success in this competitive market 16.
Conclusion
The sports supplement industry in the Middle East has seen remarkable growth, with Amazon playing a pivotal role in its success. The platform's user-friendly interface, reliable delivery services, and wide product range have made it easier for health-conscious consumers to access a variety of supplements. This, coupled with the region's increasing internet penetration, smartphone adoption, and shift towards healthier lifestyles, has created a thriving marketplace for sports nutrition brands.
As the Middle Eastern e-commerce landscape continues to evolve, sports supplement brands have a golden opportunity to expand their reach and boost sales through Amazon. By focusing on product localisation, partnering with influencers, and using targeted advertising, these brands can tap into the region's growing demand for health and fitness products. To stay up-to-date with the latest trends and insights in this dynamic market, sign up for our weekly newsletter. The future looks bright for sports supplement brands willing to adapt and innovate in this exciting market.
FAQs
Who is the leading company in sports nutrition globally?
Glanbia Performance Nutrition holds the position as the world's leading sports nutrition company, boasting a portfolio of top brands in both performance and lifestyle nutrition sectors.
What proportion of the sports nutrition market is made up of sports supplements?
In 2023, sports supplements were the predominant category in the sports nutrition market, capturing the largest revenue share at 39.4%.
Why do individuals consume sports supplements?
Individuals use sports supplements for various reasons, including gaining a competitive advantage in sports by enhancing performance attributes such as endurance, focus, speed, and strength, or for aesthetic goals like weight management, muscle definition, and reducing body fat. Additionally, supplements offer a convenient alternative to the time-consuming tasks of meal planning, shopping, and preparation.
What is the current trend in the sports nutrition market?
The sports nutrition market is experiencing significant growth, with a forecasted Compound Annual Growth Rate (CAGR) of over 10% from 2024 to 2030. This expansion is primarily driven by increasing consumer awareness and interest in health and fitness.
References
[1] - https://www2.deloitte.com/xe/en/pages/about-deloitte/articles/swift-moves/thriving-e-commerce-landscape-in-the-middle-east.html
[2] - https://data.worldbank.org/indicator/IT.NET.USER.ZS?locations=ZQ
[3] - https://www.statista.com/topics/5338/smartphone-market-in-mena/
[4] - https://www.statista.com/topics/8159/online-shopping-in-the-middle-east-and-north-africa/
[5] - https://www.omfif.org/2024/02/how-the-middle-east-and-africa-are-transforming-digital-payments/
[6] - https://markwideresearch.com/europe-middle-east-and-africa-sports-nutrition-market/
[7] - https://www.grandviewresearch.com/industry-analysis/emea-sports-nutrition-market
[8] - https://www.aimspress.com/article/doi/10.3934/publichealth.2024044?viewType=HTML
[9] - https://www.linkedin.com/pulse/middle-east-africa-sports-nutrition-market-size-country-trushna-wani-e3nwf
[10] - https://techcrunch.com/2017/07/03/amazon-souq-com-completed/
[11] - https://business.yougov.com/content/25580-amazons-rebrand-souqcom-positively-received-uae-re
[12] - https://press.aboutamazon.com/2024/3/aws-to-launch-an-infrastructure-region-in-the-kingdom-of-saudi-arabia
[13] - https://www.theinsightpartners.com/reports/middle-east-and-southeast-asia-sports-nutrition-market
[14] - https://www.ceutagroup.com/blogs/unlocking-digital-success-influencer-marketing/
[15] - https://sell.amazon.ae/advertising
[16] - https://www.bebolddigital.com/blog/how-to-sell-supplements-on-amazon
