United Arab Emirates Chocolate Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

United Arab Emirates Chocolate Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The UAE Chocolate Market size is expected to grow from USD 525.00 million in 2023 to USD 732.90 million by 2028, at a CAGR of 6.90% during the forecast period (2023-2028).

Due to the rising popularity of confectionery snack types, chocolates are rising in demand among consumers. Moreover, premium brands have an affluent consumer base and are well-placed to maintain or increase their retail value shares, supporting market growth. Additionally, consumers in the United Arab Emirates prefer to gift premium boxed chocolates, which are available in varied shapes and sizes and attractive packaging, over traditional sweets. This further elevates the influx of premium chocolate global brands, such as Godiva, in the country. One of the trends in the chocolate market is the increase in demand for artisanal chocolates, with some companies opening their own shops and using them to promote their brands.

The tourism industry has also expanded tremendously in Dubai and Abu Dhabi and Tier-1 cities in the United Arab Emirates are cementing their positions as luxury tourism destinations. Due to the United Arab Emirates' expanding tourism industry, tourists frequently bring back some regional confectionery such as chocolates as gifts for their friends and family. In response to the propelling demand, manufacturers are introducing their single-origin and premium chocolate line-ups. These strategies are helping brands gain more profit margins and grow with a more positive brand image and thus, act as major market drivers in this region.

UAE Chocolate Market Trends

Rising Expenditure on Sugar Confectionery Products in the Country

The United Arab Emirates market witnessed a consistent rise in the consumption of chocolates and 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 purposes of gifting and personal/individual consumption.

In 2021, according to UN Comtrade, the major exporters of Chocolates to the United Arab Emirates includes countries such as the Netherlands, Russian Federation, Italy, Switzerland, and the United Kingdom, while the major importers of chocolates from the United Arab Emirates include countries such as Saudi Arabia, Kuwait, Oman, Jordan, and India.

Furthermore, the premium packaging of chocolates opened new avenues for products under the luxury gifting categories. Chocolate producers focus on manufacturing new flavors that cater to changing consumer demands. Thus, premiumization followed by strong gifting culture and sweet indulgence is one of the major factors driving the market's growth. The innovative packaging and flavors in the premium chocolate segment with clean label claims hold potential and a promising market during the forecast period. Manufacturers are also developing creative packaging and marketing techniques that distinguish products by their wrappings, such as 3D wrapping, placing a QR code on the wrapper for an online game, and contests to engage customers, taking into consideration the largest and fastest-growing consumer segment. Despite the growing awareness and concerns about calorie intake among health-conscious consumers, the lure of chocolates and sugar confectionery has grown stronger in the country over the past few years. This factor has led to increased consumption of chocolates and sugar confectionery over the review period.

Box Assortments Fastest-growing Product Category

Gift-giving is customary in the United Arab Emirates and regarded highly in business dealings, as well as 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 the country's gifting culture, followed by consumers' indulgence in sugar confectionery products, is one of the major factors driving the segment in the country.

Furthermore, the key players in the market have been observed to introduce unique products to meet this seasonal demand. It plays an essential role in the segment's growth and is anticipated to aid the market's growth over the forecast period. For instance, in October 2022, m cacao introduced a customized video experience inside a box of chocolates with a gourmet theme named Customizable Chocolate Video Box. Therefore, such factors are supporting the chocolate market in the United Arab Emirates.

UAE Chocolate Industry Overview

The UAE chocolate market is fragmented and comprises numerous regional and international competitors. Prominent market players include Mars Incorporated, Mondelez International, Ferrero Group, Lindt & Sprungli AG, and Nestle, among others. With a vast global presence and wide distribution networks, these players try to retain their position within the market or gain an advantage over their competitors and are focused on research and development.​ New and evolving domestic companies are trying to increase their productivity and overall sales by extensively marketing these products in newer markets.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
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Please note: The report will take approximately 2 business days to prepare and deliver.

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 By Product Type
5.1.1 Softlines/Selflines
5.1.2 Boxed Assortments
5.1.3 Countlines
5.1.4 Molded Chocolates
5.1.5 Other Product Types
5.2 By Distribution Channel
5.2.1 Supermarkets/Hypermarkets
5.2.2 Convenience/Grocery Stores
5.2.3 Specialty Stores
5.2.4 Online Retail Stores
5.2.5 Other Distribution Channels
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Nestle SA
6.3.2 Mondelez International
6.3.3 Mars Incorporated
6.3.4 Ferrero Group
6.3.5 Chocoladefabriken Lindt & Sprungli AG
6.3.6 Notions Group
6.3.7 IFFCO Group
6.3.8 Al Nassma
6.3.9 Patchi
6.3.10 Al Nassma
6.3.11 Barry Callebaut
6.3.12 Made By Two

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