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United Arab Emirates Chocolate Market - Growth, Trends, and Forecasts (2021-2026)

United Arab Emirates Chocolate Market - Growth, Trends, and Forecasts (2021-2026)

  • January 2021
  • 135 pages
  • ID: 6020234
  • Format: PDF
  • Mordor Intelligence LLP
Up to $650 off Until Apr 10th 2021


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The United Arab Emirates chocolate market was valued at USD 425.8 million in 2020 and is projected to grow at CAGR of 6.6% during the forecast period (2021-2026).

- Due to the popularity of confectionery snack types and relatively high unit prices, chocolates are likely to become more of a premium snack option than an everyday snack option. However, premium brands have an affluent consumer base and are well placed to maintain or increase their retail value shares, which is supporting market growth.
- The rise in consumption for countline chocolates in the country has stimulated market growth. The United Arab Emirates is emerging as one of the potential markets for chocolates, due to the increase in international chocolate companies and domestic players, and the changing snacking preferences of customers.
- Additionally, the consumers in the United Arab Emirates are preferring to gift premium boxed chocolates, which are available in varied shapes and sizes and in attractive packaging, over traditional sweets. This is further elevating the influx of premium chocolate global brands, such as Godiva, in the country.
- The UAE chocolate market was severely affected by the low sales volume due to the COVID-19 pandemic, including supply-side issues linked to quality and certification. The public sector is providing support to the strengthening partnership relationships between fine cocoa producers and premium chocolate companies to enhance the resilience of marketing infrastructure. This is expected to provide an important means of assistance to the recovery of this sub-sector.
- However, as the supply chain of raw materials required for the production of chocolates is improving, the market is expected to flourish during the forecast period with no further negative impact of the COVID-19, with online channels remaining the fastest-growing distribution channel.

Key Market Trends
Rising Expenditure on Sugar Confectionery Products In The Country

The UAE market witnessed a consistent rise in the consumption of sugar confectionery over the past few years, and the industry is predominantly driven by the consumption of chocolate products in the country. Due to international companies setting up factories in the country, to the emergence of local small-scale organizations, there is an awareness of an expanding market and demand for standard and luxury chocolate, that serves the gifting purpose as well as for personal/individual consumption. The premium packaging of chocolates opened new avenues for products under the luxury gifting categories. Chocolate producers are focusing on manufacturing new chocolate flavours that cater to changing consumer demands. For instance: In 2019, Nestle has launched a limited edition green tea matcha KitKat in selected GCC markets including United Arab Emirates, Saudi Arabia and Kuwait. The product is combined with white chocolate to provide a sweet and fragrant flavour without artificial colour, flavours or preservatives. Such product launches are not just supporting the consumer’s demand for premium chocolates but are also meeting the on-going trend of organic/chocolates with no artificial food ingredients.

Box Assortments Fastest Growing Product Category

Gift giving is customary in the United Arab Emirates and regarded highly in business dealings, as well in festivals and family gatherings. Many occasions have incorporated chocolate as part of the festivities. These include the Holy month of Ramadan, Eid, weddings, births, and social gatherings. Thus, the association of box assortment chocolates with country’s gifting culture, followed by consumer’s indulgence in sugar confectionery products, is one of the major factors driving the segment in the country. Key players in the market have been observed to introduce unique products in the market to meet this seasonal demand. It plays an essential role in the growth of the segment and is anticipated to aid in the market’s growth over the forecast period. For instance, Forrey & Galland introduced a premium range of Ramadan gift boxes, whose design was inspired by the Sheikh Zayed Grand Mosque in Abu Dhabi. Notably, box assortment chocolate category is projected to witness growth rate greater than 8% during the forecast period.

Competitive Landscape
The UAE chocolate market is fragmented and comprises numerous regional and international competitors. Mars Inc. is the market leader in this market study, capturing more than one-third share of the market. With a huge global presence and wide distribution networks, key players, such as Mars Incorporated, Mondelez International, Ferrero Group, Lindt & Sprungli AG, and Nestle, hold prominent shares in the UAE chocolate market. Major players, in order to retain their position within the market or gain an advantage over their competitors, have set their focus upon R&D.? Furthermore, the market for artisanal chocolate is expected to grow, particularly in some regions. Thus, new and evolving domestic companies are trying to increase their production and the overall sales by extensively marketing these products in newer markets.

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