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Top Growth Opportunities: Confectionery in the UAE

Top Growth Opportunities: Confectionery in the UAE

Summary

Confectionery sector witnessed consistent growth between 2011 and 2016 and this is set to continue in the next five years to 2021, with an estimated CAGR of about 7.5%. This growth is due to a range of economic and political adjustments. Investment in oilfield development has led to the rise in oil production, thus allowing economic growth to slowly recover, projected to reach 3% in 2018. More importantly, the rise in oil prices has caused confidence and financial conditions to pick up, meaning the effects of fiscal consolidation are reduced and non-oil growth is boosted. Yet, society demands further economic diversification, meaning the UAE now considers implementing higher taxation and announced a nuclear energy project.UAE ranks seventh among the top 10 confectionery markets in terms of per capita expenditure (in US dollar terms), higher than Saudi Arabia, China, and Malaysia. The per capita expenditure on confectionery products is expected to grow at a high CAGR of close to 6% during 2016-2021. This growth during the forecast period is primarily attributed to the growing demand for premium confectionery with new and innovative flavours offered in attractive packaging as a gifting item for festivals and other occasions.Chocolate is the most valuable category in the UAE’s confectionery market, which recorded high growth at a CAGR of about 5.5% during 2011-2016. Furthermore, it is expected to record strong growth at a CAGR of around 6% in the next five years and will be worth just over US$400 million in 2021. Sugar confectionery, the second largest category in the market, is expected to record the fastest growth at a CAGR of almost 11% during 2016-2021 and will reach around US$150 million in 2021. It is followed by gum, the smallest value category, which is forecast to record a CAGR of over 8% in the next five years and will be worth over US$75 million in 2021.The report Top Growth Opportunities: Confectionery in the UAE, provides recommended actions and detailed analysis of how to target the best growth opportunities for confectionery producers and retailers. Readers can understand what categories, channels, companies, and consumers will drive the success of confectionery food markets in the UAE through our detailed and robust data, expert insight, and case studies.Furthermore, this report allows accessing the following -

  • Key consumer demographic groups driving consumption within the UAE market. Improve your consumer targeting by understanding who’s driving the market, what they want, and why.
  • A study of market value and volumes over 2011-2016 for the UAE supplemented with category, brand and packaging analysis that shows the current state of the market, and how it will evolve over the 2016-2021 period.
  • White space analysis, to pinpoint attractive spaces in the market and the key actions to take.
  • Insight into the implications behind the data, and analysis of how the consumer needs will evolve in the short-to-medium term future.
  • Examples of international and regional product innovation targeting key consumer needs.
Companies mentioned in this report: LuLu, Carrefour, Co-op, Circle K, LuLu Express, 7-Eleven, Al Maya, Baqer Mohebi, Mars, Nestle, Mondelez, Cadbury, Milka, Galaxy, Maltesers, Kinder, Betty Crocker, Lindt, Mentos, Nugali, Kizandy, Hershey's, Kinnerton.

Scope
  • The UAE confectionery market is one of the largest globally, worth an excess of US$437.0 million.
  • Despite the country's dependency on commodities and contracted economic growth, the UAE confectionery market experienced healthy growth during the period 2011-2016, and is set to expand further in the next five years, with a CAGR of 7.4%.
  • Confectionery consumption is centered around urban-living consumers; time-pressed consumers value convenience and products that facilitate on-the-go use, thus maximizing utility.
  • Over 2016-2021, hard boiled sweets reveals key opportunities, being the highest value sub-category. Whilst, caramel/toffees are expected to record the second-fastest value growth at a GACR of 11.3%.
Reasons to buy
  • This report brings together consumer analysis and market data to provide actionable insight into the behavior of UAE's confectionery consumers.
  • This is based on GlobalData's unique consumer data, developed from extensive consumption surveys and consumer group tracking, which quantifies the influence of 20 consumption motivations in the confectionery sector.
  • Category, brand, and packaging dynamics are also examined. This allows product and marketing strategies to be better aligned with the leading trends in the market.


  • Introducing a top growth market for confectionery
    • Top opportunity markets
    • GlobalData Consumer's opportunity scoring methodology
    • Top 10 global growth opportunities scores
    • Top global issues
    • Assessment against global strategic issues
    • GlobalData's strategic issues map
    • Predicted future issues for the Global Confectionery sector
    • United Arab Emirates reward and risk assessment
    • Opportunity score - United Arab Emirates overview
    • Consumer Confectionery spending trends - peer group comparisons
    • Political, economic, social, and technological: analysis
    • Enablers and inhibitors of growth
    • Confectionery - rewards and opportunities for growth
      • Table Market value of the UAE's confectionery market, 2011-2021
    • Summary of the Confectionery market in United Arab Emirates
  • Market insight - identifying the opportunities to move into
    • Market growth by category
    • Value growth of the UAE's Confectionery market by category
    • Contribution to change by value
      • Table Category values (US$ million)
    • Volume growth of the UAE's Confectionery market by category
    • Contribution to change by volume
      • Table Category volumes (kg million)
    • Level of premiumization by category
    • Category analysis - key drivers of change in Confectionery
  • Retail and distribution insight - key channels and retailers driving growth
    • Confectionery retail channel share - The UAE
    • Key retail channel trends
    • Routes to market - retail overview
    • Routes to market - key retailers
    • Drivers of change in the Confectionery sector
  • Company and brand insight - the competitive landscape defined
    • Confectionery category fragmentation
    • Company and brand strength
    • Private label penetration
      • Table Private label growth compared to brands by category (in value terms), in the UAE's confectionery market, 2011-2016
    • Brand share by leading supplier for total confectionery
    • International and domestic brand analysis
      • Table Top five international confectionery brands
      • Table Top five domestic confectionery brands
    • Company and brand strength
  • Consumer insight - who, what, when, where, and why
    • Strategic issues map - pitfalls and opportunities
    • Key consumer drivers for Confectionery
    • Key consumers trends in UAE Confectionery
    • Consumer groups - key consumer targets
      • Table 2016 Consumption volume shares by consumer group
    • Key health & wellness trends
    • How health & wellness benefits will contribute to growth
    • Penetration of health & wellness claims by category
    • Consumer trends summary
  • Product and packaging insights -
    • Key product insights in Confectionery
    • Trends and strategic issues - other notable product trends
    • Product & packaging insights - key product innovation case studies
    • Key product innovation case study: Nugali Banana Dark Chocolate
    • Key packaging insights
    • Trends and strategic issues - package material trends
    • Trends and strategic issues - packaging closure
    • Product launch key takeouts
  • White spaces and innovation opportunities - space to move into
    • Highest growth segments to target when entering the UAE Confectionery sector
    • Consumer spaces to target when entering the UAE confectionery market
      • Table Top volume CAGR categories 2011-2016
    • Segment focus - opportunities
    • Price change by category in the UAE Confectionery sector
    • Pricing strategies - movements in average prices for leading brands
      • Table Monthly average unit price point, AED
    • Product launch key takeouts
    • Recommendations for new ways to enter the confectionery market in the UAE
  • Appendix
    • Definitions
      • Category definitions
      • Channel definitions
    • Research Methodology
      • Market data - 50 country methodology
      • Market data - additional 152 country methodology
      • Consumer graphics methodology
      • Health & wellness methodology
      • Online price intelligence methodology

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