UAE Sugar Confectionery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

UAE Sugar Confectionery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The United Arab Emirates Sugar Confectionery Market was valued at USD 87.96 million in 2021, and it is estimated to be worth USD 123.67 million by 2027, registering a CAGR of 5.69% during the forecast period (2022-2027).

Businesses around the globe, including the confectionery industry, have suffered significant losses because of the COVID-19 outbreak and its complicated developments, including volatility in commodity costs, since the beginning of 2020. In the case of the United Arab Emirates (UAE), the government imposed a lockdown for around four weeks in the country, post which, malls and other retail outlets were allowed to reopen with a maximum capacity of 30%. Furthermore, the import of food and beverage products, including sugar confectionery, witnessed a major disruption given the pandemic. This situation encouraged a shift in focus toward local production.

Consumers in the country shifted their preferences toward essential goods, thereby resulting in an adverse impact on the chocolates, and sugar confectionery segments of the market studied, initially. For instance, Nestle SA reported a slightly negative growth in the confectionery segment in 2020, with a reduced demand for impulse and gifting products. Similarly, Mondelez International reported a decline of around 19.16% in its net revenues generated by its Gum & Candy operating segment in the Asia, Middle East, and Africa (AMEA) region in 2020.

The United Arab Emirates 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. During the forecast period, the market's growth is primarily attributed to the growing demand for premium confectionery with new and innovative flavors offered in attractive packaging as a gifting item for festivals and other occasions.

Key Market TrendsPastilles and Jellies Lead the Market Growth

• The increased consumption of pastilles in the country over the past few years may be primarily attributed to the increased consumption of medicinal or throat lozenges, a type of pastille that helps provide temporary relief from coughs and other throat problems. Lozenges also help soothe and lubricate the tissues of the throat that are affected by influenza or the common cold.
• The growing number of consumers who contract bacterial or viral infections in the country has led to the increased consumption of lozenges over the past few years, thereby leading to the growth of this segment of the market. Additionally, the availability of fruit-flavored pastilles containing ingredients, such as Zinc, Vitamin C, and honey, among others, have also become popular among health-conscious consumers focusing on preventive health care, which has become paramount considering the COVID-19 pandemic. This factor is projected to boost the growth of the market during the forecast period.
• Despite the growing awareness and concerns about calorie intake among health-conscious consumers, the lure of chocolates and candies has continually grown stronger in the country over the past few years. This factor has led to the increased consumption of jellies over the study period.

Presence of Large Supermarket/Hypermarket Chains Drives Sugar Confectionery Sales in the UAE

• The food retail sector in the United Arab Emirates is growing, especially in the supermarkets/ hypermarkets segment, as it is offering immense discounts attracting a larger consumer base in the country. Due to this, the supermarket chains are trying to expand their presence in the country.
• Aswaaq, a UAE-owned retail supermarket chain, has a number of outlets under franchise, which are often situated in shopping malls and frequently visited by the upper-class section in the country. As the consumer base for these retail chains grows, new enterprises are making their way into the market, and existing players are looking to expand in the country.
• The growing market share of the hypermarket segment can be attributed to consumers’ practice of purchasing products in bulk and family packs. Consumers prefer making fewer trips to the stores to receive more value for their money, which, in turn, is increasing the sales of sugar confectionery products in the overall market.​​ ​

Competitive Landscape

The UAE sugar confectionery market is fragmented and highly competitive, with major market share held by prominent players, such as Perfetti Van Melle, Mars Inc., and Storck KG. Multinational brands, such as Perfetti Van Melle and Mars Inc., continued to dominate the market in 2021, owing to their robust product offerings via their brands, coupled with a strong supply and distribution network in the country. While the key players in the market have enjoyed a dominant presence in the country over the study period, local and newer players have been giving the leading players stiff competition by focusing on pricing, the quality of products, the innovation of products catering to consumer tastes and preferences, and healthier alternatives to conventional confectionery products.

Additional Benefits:

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

Companies Mentioned

HARIBO GmbH & Co KG 
Perfetti Van Melle
August Storck KG
Nestle SA
Mondelez International Inc.
Mars Inc.
Adams and Brooks Candy
American Licorice
Ferrero Group
Al Seedawi Lebanese & Emirates Factory Co.