Europe Hummus Market Analysis

Europe Hummus Market (Global, 2024)

Introduction

During the past few years, the hummus market in Europe has been transformed, with consumers’ preference for vegetarian diets and healthy snacking options. The nutritional benefits of hummus have increased the popularity of this versatile dip. Tastes and dietary needs are catered for, with organic, gluten-free and low-fat products available. Also, the growing interest in Mediterranean cuisine and the rise in popularity of veganism have further increased the demand for hummus, making it a key player in the wider healthy-eating sector. The increasing number of products and manufacturers are resulting in a dynamic market with the presence of both established and new players. The trends, developments and competition in the hummus market in Europe are covered in this report, which provides valuable insights for companies looking to operate in this fast-moving and rapidly growing sector.

PESTLE Analysis

Political

In 2024 the European Union imposes new regulations on food products, including hummus, requiring that they all be labeled with a new system of stricter labelling. Allergen and nutrient information is to be clearly stated, and it affects more than 500 food manufacturers across the European Union. The European Union’s Common Agricultural Policy allocates some fifty-eight billion dollars annually to support sustainable agriculture, which in turn can benefit the chickpea farmers, whose product is the primary ingredient in hummus.

Economic

In 2024 the average price of chick-peas in Europe rose to one thousand two hundred francs a ton, owing to the greater demand and the lack of supplies. The hummus market also saw a change in the way consumers spent their money. Forty-five per cent of consumers said they were prepared to pay more for organic and local products. Brands of hummus with special characteristics grew in popularity, and the sale of these increased by twenty per cent compared with ordinary brands.

Social

In Europe, health consciousness continues to grow, with 65% of 18-34 year olds identifying themselves as health-conscious consumers by 2024. This has resulted in a 30% increase in the consumption of plant-based foods, including hummus, as consumers seek healthier snack alternatives. In addition, social media platforms are reporting a 50% increase in hummus-related content, which is a reflection of the increasing popularity of Mediterranean cuisine and the trend towards plant-based diets.

Technological

In recent years, hummus has been the subject of a new type of food technology, which has been able to develop a new type of packaging, with about 70 per cent of manufacturers opting for vacuum-packed containers to increase the shelf life of the product. In addition, the use of artificial intelligence in the supply chain has improved the efficiency of the system, and by 2024 waste has been reduced by some 15 per cent. The integration of this technology is essential to ensure the quality of the product and to satisfy the growing demand for fresh hummus.

Legal

In 2024, the European Food and Safety Authority (EFSA) introduced a new set of regulations on the use of additives in food products, including hummus. This restricted the use of certain preservatives. Around 200 hummus brands were obliged to rework their products to meet the new regulations. Moreover, the General Data Protection Regulation (GDPR) continues to place strict requirements on the way companies market their products and handle consumers’ data.

Environmental

Production of hummus is being examined, and the European Commission has recently estimated that the agricultural sector is responsible for 10 per cent of the greenhouse gases emitted by the European Union. To counteract this, initiatives are being developed to promote sustainable farming practices, with a view to ensuring that by 2024 25 per cent of hummus producers will have converted to organic methods. Also, by 2030 the European Union aims to reduce food waste by 50 per cent, and this is to be achieved by encouraging hummus manufacturers to adopt more sustainable practices in their sourcing and production.

Porter's Five Forces

Threat of New Entrants

The hummus market in Europe in 2024 faces a moderate threat from new entrants. The market has been growing and has benefited from a greater interest in plant-based foods, but established brands have a significant share of the market and consumers are loyal to them. In order to compete effectively, new entrants may face difficulties with distribution and marketing costs.

Bargaining Power of Suppliers

The bargaining power of the suppliers in the hummus market is generally weak. There are many suppliers of the basic ingredients, such as chickpeas, tahini, and spices. Suppliers can easily change suppliers, which limits the power of a single supplier.

Bargaining Power of Buyers

High - The buyers in the European hummus market have high bargaining power, owing to the wide availability of brands and products. The consumers can easily change from one hummus product to another based on the price, taste, and quality. Competition in the market forces the manufacturers to keep their prices low and innovate to retain the customer base.

Threat of Substitutes

The threat of substitutes in the hummus market is moderate. Guacamole, bean dips and other plant-based spreads can be substituted for hummus. However, hummus has a unique flavor profile and health benefits that set it apart from many substitutes.

Competitive Rivalry

The competitive rivalry in the European hummus market is high, with many established brands and new entrants competing for the same market share. In order to win over consumers, the companies have resorted to aggressive marketing, product innovation and the expansion of their distribution networks. The fierce competition has led to price wars and increased marketing costs.

SWOT Analysis

Strengths

• Growing consumer awareness of health benefits associated with hummus, such as high protein and fiber content.
• Diverse flavor offerings catering to various consumer preferences, enhancing market appeal.
• Strong presence of established brands with loyal customer bases, ensuring market stability.

Weaknesses

• Higher price point compared to traditional spreads, which may limit accessibility for price-sensitive consumers.
• Limited shelf life of fresh hummus products, leading to potential waste and inventory challenges.
• Perception of hummus as a niche product, which may restrict broader market penetration.

Opportunities

• Increasing demand for plant-based and vegan products, positioning hummus as a key player in this trend.
• Expansion into new distribution channels, including online retail and food service sectors.
• Potential for product innovation, such as organic or fortified hummus, to attract health-conscious consumers.

Threats

• Intense competition from both established brands and new entrants in the hummus market.
• Economic fluctuations that could impact consumer spending on premium food products.
• Potential supply chain disruptions affecting ingredient availability and pricing.

Summary

The European hummus market in 2024 is characterized by a strong trend towards health-oriented products, a wide range of flavors and established brand loyalty. Despite these advantages, however, higher prices and a shorter shelf life may hinder broader uptake. Competition and economic factors represent a significant threat. Opportunities for growth are a growing demand for plant-based foods and new product developments. Strategic emphasis is on the expansion of distribution and the improvement of product quality.