Middle East & Africa Chocolate Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Middle East & Africa Chocolate Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Middle-East and African Chocolate Market is forecast to record a CAGR of 6.72% during the forecast period.

The COVID-19 pandemic had an unprecedented impact on the chocolate market in the region, as its ramification led to lower sales volumes, with other problems including supply-side issues linked to quality and certification. The United Arab Emirates and most Middle Eastern countries rely on imports from major foreign brands, such as Barry Callebaut, Ferrero, and Lindt, rather than domestic production. Chocolate and chocolate-based products have had most of their sales in the region through convenience stores and specialty outlets. Due to disruptions in imports, followed by lockdown, an increasing number of retail outlets remained closed for an extended period of time, resulting in lower volume consumption of premium chocolates.

Development in modern retailing also boosted the demand for chocolate in the Middle East. Furthermore, the large expatriate population in the Middle-East and African countries, such as United Arab Emirates, Saudi Arabia, and Nigeria, contributed to the increasing demand for chocolates in the region. For this reason, imported chocolates have a huge opportunity in this region, as a proper distribution network can help improve the addressable market in the Middle Eastern nations.

Growing demand for artisanal chocolates is driving demand in this region, with several companies starting their establishments and using them to promote their brand. With the trend moving towards quality, the inherent flavor of the cocoa beans is given a particular emphasis. The products in this segment are prepared using fresh cocoa beans and carved into chocolates by small-scale chocolatiers.

Countline chocolates are most popular among teenagers and consumers under 25 years of age, owing to their convenience factors as they are designed to be eaten as a snack and on the go. The rise in consumption of countline chocolates in the United Arab Emirate region has stimulated market growth, as the United Arab Emirates is emerging as one of the most potential markets for chocolates, due to the increase in the number of international chocolate companies, along with the domestic players, coupled with changing snacking preferences of customers. It also includes products sold in diverse formats, such as multipacks or mini-fun sizes.

South Africa is registering fast growth, contributing to the overall sales of the chocolate market in Middle-East and Africa. The majority of the sales growth in the chocolate market in South Africa is attributed to the mass merchandisers, such as hypermarkets and supermarkets. The rising consumer awareness and increasing disposable incomes among middle-income consumers, product innovation, as well as channel development by manufacturers to reach a wider consumer base are some of the major factors that are expected to boost the sales of the chocolate market in South Africa, during the forecast period.

The Middle-East and African Chocolate Market is highly fragmented, with various companies from around the world holding market share in the region. New product innovations, partnerships, mergers and acquisitions, and expansions are the major strategic approaches preferred by the companies in the market studied. New product innovations have become the most important strategy due to the rapidly developing market in the Middle East & Africa region. Mars Incorporated, Lindt & Sprungli AG, and Nestle are the most active companies in the Middle East & Africa chocolate market. Over the last few years, expanding market presence in emerging economies and product innovations have been a key growth strategy for major companies.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support