Middle East & Africa Confectionery Market - Segmented by Product Type, Distribution Channel, and Geography â€“ Growth, Trends, and Forecast (2018 - 2023)
The Middle East & Africa confectionery market is expected to reach USD 16,356 by 2023, witnessing a healthy CAGR of 5.1%, during the forecast period. Chocolate consumption volume in Middle-east experienced a steady growth despite of the declining volume sales in western countries. The Middle East & Africa offer the potential opportunity to confectionery manufacturers owing to increased demand, high population and purchasing power in the region. Confectionery sale in the region increased from 32 million Kg in 2012 to 34 million Kg in 2018.
Sugar confectionery accounts for over 52% of retail confectionery sale in the region. Confectionery consumption pattern varies from country to country. For example, sugar confectionery accounts for 24% of the retail sale in Saudi Arab while it only accounts for 12% of the sale in UAE.
Chocolate Craving Continue to Attract Sales
Chocolate accounts for about 30% of the confectionery market in Middle East & Africa, owing to consumer preference for healthy products, such as cocoa. The category registered the fastest growth rate in the confectionery value sales. Countlines is the most consumed chocolates in the region, which is growing at a more rapid rate of 6.8%. The demand for countline sales crossed USD 1,780 million in 2017, driven by on-the-go and convenient pack style of products. Countline that includes chocolate bars, wafers coated with chocolate, which are available in multi-packs, mini size, and various formats, eaten as snacks at multiple occasion. Countlines dominates the chocolate confectionery market with a volume share of 30.5% in 2016, which is followed by Softlines/Selflines. Boxed assortments sale is growing in developing region owing to seasonal chocolate gifting trend. The boxed chocolate market is expected to grow at a faster rate of 7.3%, during the forecast period, owing to increasing demand for premium chocolate and attractive packaging.
Sugar confectionery is the second largest segment which is followed by gum and snack bar. High sugar content related to obesity is a severe concern among consumers that affected the sugar confectionery sales. Introduction of healthier oral products formulated with mint accelerated the gum market growth. Growing health & wellness snacking options are expected to affect the confectionery market.
UAE Boosting Confectionery Sales
Saudi Arabia continues to dominate the market despite economic downturn, which affected the confectionery growth rate. However, UAE is growing at a much faster rate of 14% driven by rising in per capita income, young population fuel seasonal chocolate sales. Consumers are looking for healthier options, such as low calorie, high cocoa, and functional ingredients based confectionery. Functional claim on the confectionery products label is proliferating. In recent years, there has been a significant increase in the number of products launched in sugar-free gums, energy chews, and candy. Chocolate confectionery and gums are the more popular category in MNEA region as compared to sugar confectionery sale. The confectionery production industry in the Middle East has recorded a growth of 20% in annual turnover. Increased foreign working population, growing organized distribution channel and high per capita income is driving the confectionery market. Heavy price and discount offered at supermarkets/hypermarkets are another factor boosted the chocolate confectionery sale in the region.
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