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The chocolate market in the GCC region is poised for solid growth over the next five years registering a CAGR (compound annual growth rate) of more than 12% during the 2018-23 period, said a report by 6Wresearch.
Growing demand for premium chocolate products, increasing consumption of chocolate confectionery among young population and companies expanding the brand portfolio of chocolate confectionery is expected to drive the GCC chocolate market.
Consumers in the age bracket of 5 to 24 years accounted for a revenue share of more than 73% in the overall chocolate market in the region last year, stated the recent ‘Voice of Customer’ survey published by TechSci Research.
Moreover, manufacturers are increasingly focusing on processing heat and moisture resistant chocolates, which would help to increase the product shelf life in the extreme climatic conditions of the Middle East, stated the report.
Among the GCC countries, Saudi Arabia dominated the market with a share of more than 45% in 2017.
The kingdom is expected to generate significant demand for chocolates and is anticipated to remain dominant in the region during the forecast period as well owing to high tourist footfall and the high expat population in the country.
GCC chocolate market can be broadly categorized into chocolate pouches and bags, boxed chocolates, countline, tablets and others.
Countline segment accounts for the majority share in the market as these products are high in demand and are relatively less expensive than other categories and are more of an impulse purchase.
Mars GCC, Mondelez Arabia for Trading, Nestle Middle East, Ferrero Trading Dubai, Chocoladefabriken Lindt & Sprüngli, Patchi SAL, Al Nassma Chocolate are some of the leading players operating n GCC chocolate market.
Additionally, a considerable demand for chocolate gift boxes, premium dark chocolates, etc., has been witnessed in GCC region on various festive occasions, particularly in countries like Qatar and Bahrain, where expenditure on chocolates has also been observed to be comparatively high.
Furthermore, the growing presence of chocolates across online portals would aid the growth of the GCC chocolate market in the coming years.
Source Credit: Trade Arabia