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

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

The Middle East and African Premium Chocolate Market is projected to register a CAGR of 10.4% during the forecast period.

The rising popularity of premium chocolates as gifting items for special occasions is identified as a key market driver in the region. Further, this trend has created more opportunities and scope, which major market players, such as Mars Inc., Mondelez International, and Nestle, are addressing with increasing product launches and expansions. They are keen on rebranding or reformulating their mass-market chocolates to sell a more expensive premium experience and create a healthier image. Additionally, in line with this trend, consumers in the Middle East and Africa are looking out for more sophisticated tastes and different products from common brands found in the retail sector. This has created a surge in demand for high-quality premium chocolate products. For instance, Lindt and Ferrero were introduced a little over a decade ago, which has considerably raised the profile of premium chocolates in South Africa.

Moreover, attractive product offerings from regional and global brands are influencing consumer spending on premium chocolates. For instance, in Dubai, the chocolate producer Forrey and Galland offers a range of classic and Arabic fusion handmade chocolates. It also offers an option of personalization to its customers to get chocolates of their taste. Few other chocolate companies, such as Cacao Sampaka and Godiva, have an extensive catalog of corporate gift chocolate boxes. Such offerings with unique packaging and customization options from major companies in the region are also making premium chocolates a perfect gift for any occasion.

Over the years, several studies have pointed to the health benefits of eating dark chocolate, that is, chocolate with a high cocoa content (usually 65 to 80%). For starters, dark chocolate usually has less sugar and more cocoa solids, which is where beneficial flavonol compounds reside. Flavonols are thought to lower blood pressure and improve heart health. Raw cacao has many beneficial qualities: it is high in magnesium, which can curb sugar cravings, is high in fiber, and contains iron and protein, as well as antioxidants. Furthermore, a few recent research findings indicate that chocolate consumption aids in looking younger due to its anti-aging properties. It also relieves stress. This is expected to push the demand for chocolate in the Middle East and African countries. Moreover, the demand for fine flavor cocoa in regions such as Saudi Arabia and South Africa is experiencing substantial growth. Ultra- and high-end beans are used for gourmet chocolates and regular, and low-fine beans are used for regular premium chocolates. This development is driven by the health trend and the quest for more exclusive products.

The chocolate market in Saudi Arabia is driven by the rising consumer interest in premium chocolates and increasing disposable incomes among middle-income consumers, coupled with the manufacturers widening their distribution channels with the motto to reach a more extensive consumer base, thus capturing the market share. Additionally, most manufacturers offer unique packaging options and personalization into different sizes and shapes according to the consumers' convenience, which supports the growing demand for premium chocolates in the country. Premium chocolates are becoming more popular as a perfect gifting option owing to their packaging styles and multiple offerings. Artisan chocolates are made of natural ingredients with a lower carbon footprint than other chocolates available in the market. They are in demand among the consumers of the country. Moreover, in line with this growing demand, most companies in Saudi Arabia have an organized distribution channel. The supermarkets/hypermarkets offer discounts on heavy-priced premium chocolate products, which is expected to boost sales even further.

The Middle East and African premium chocolate market is highly competitive, with a significant presence of both global and regional players. Prominent players in the market studied are keen on building an appetite for higher-priced chocolates among young consumers by increasing accessibility and launching innovative products. Companies also focus on expanding their distribution channels to reach out to a larger consumer base. Tourists and travelers also contribute a larger share of the sales of premium chocolates across the region. Hence, players in the market studied have been expanding their presence and offerings in the travel retail sector. A few major players that held a prominent share in the market include Chocoladefabriken Lindt & Sprüngli AG, Al Nassma Chocolate LLC, Cocoa Sampaka, Mirzam, Al Quoz, and Godiva.

• The market estimate (ME) sheet in Excel format
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