Saudi Arabia Chocolate Market is Poised to Reach Valuation of USD 1,563.71 Million By 2032, at 4.86% CAGR: Astute Analytica

The Saudi Arabian chocolate market is experiencing significant growth, driven by rising disposable incomes and changing preferences. Consumers favor both affordable everyday treats and premium chocolates, especially during gifting seasons. While imported brands dominate, local production is increasing. Health trends are influencing demand for dark chocolate varieties.

New Delhi, April 15, 2024 (GLOBE NEWSWIRE) — According to the latest industry analysis research by Astute Analytica, the Saudi Arabia chocolate market is projected to reach US$ 1,563.71 million by 2032, up from US$ 1,020.16 million in 2023, at a CAGR of 4.86% during the forecast period 2024–2032.

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The Saudi Arabian chocolate market presents a landscape brimming with opportunity, demonstrating impressive growth potential. As the largest market in the MENA region, accounting for over 30% of consumption, Saudi Arabia is experiencing a 5.5% annual increase in chocolate demand. This growth, fueled by rising disposable incomes, rapid urbanization, and a heightened awareness of health benefits, signals significant expansion possibilities – particularly considering the current per capita consumption of 1.5kg annually leaves significant room for growth compared to the global average of 7kg.

Investors will find a dynamic market shaped by evolving preferences. The Saudi consumer demonstrates a clear predilection for premium and artisanal chocolate experiences, evidenced by a 15% growth in this segment. This trend, coupled with the 20% sales increase attributed to digital marketing campaigns, highlights a consumer base eager for innovation and receptive to sophisticated brand narratives. The surging popularity of dark chocolate (growing at 8% annually) further emphasizes a market seeking the intersection of indulgence and well-being.

While international giants like Mars, Mondelez, and Nestle hold substantial market share, the Saudi Arabian landscape is a competitive arena for ambitious local and international brands. Success rests upon differentiation, adaptability, and a deep understanding of the Saudi consumer’s evolving tastes. Players investing in tailored product offerings, localized marketing strategies, and expansive distribution networks stand to reap significant rewards in this rapidly transforming and undeniably lucrative market.

Key Findings in Saudi Arabia Chocolate Market

Market Forecast (2032) US$ 1,563.71 million
CAGR 4.86%
By Type  Milk Chocolate (38.9%)
By Category Conventional (67.5%)
By Ingredients Cocoa Beans (41.6%)
By Pricing Low-Priced Chocolate (48.5%)
Top Trends
  • Growing demand for premium and artisanal chocolates among urban millennials and Gen Z consumers
  • Increasing popularity of organic chocolates, signaling a gradual shift in consumer behavior
Top Drivers
  • Changing taste preferences and consumption patterns, driven by increasing disposable income
  • Cultural significance of chocolate in Saudi Arabia, associated with celebrations, hospitality, and gift-giving
  • Entry of foreign manufacturers, driving growth and competition in the market
Top Challenges
  • Economic fluctuations and their impact on consumer spending patterns
  • Intense competition among global and local chocolate brands

Chocolate Import in Saudi Arabia Exceeded $677 Million

Chocolate imports into Saudi Arabia chocolate market demonstrate a significant presence in the market, reaching 33,200 tons in recent years. This volume of imports translated to a value of $677 million in 2022, placing Saudi Arabia as the 13th largest chocolate importer globally. Imports of chocolate and other cocoa food preparations (HS code 1806) represented a striking 92% of total imports in this category to Saudi Arabia in 2022. Furthermore, chocolate imports showed a slight increase in their share of Saudi Arabia’s total imports in 2022, increasing by 0.004 percentage points to reach 0.322%.

Regarding import sources, the United Arab Emirates, Russia, and Turkey emerge as the primary suppliers of chocolate imports to Saudi Arabia. In 2022, the top sources of chocolate imports for Saudi Arabia were the United Arab Emirates ($179M), the Netherlands ($80.7M), the United Kingdom ($77.1M), Egypt ($59.4M), and Italy ($56.1M). While a relatively flat trend pattern has characterized chocolate imports into Saudi Arabia in recent years, the sheer volume and value of these imports highlight the strong demand for chocolate within the Kingdom.

Milk Chocolate: The Sweetheart of Saudi Arabia’s Confectionery Landscape, Contribute Over 38%

In the Saudi Arabian chocolate market, milk chocolate holds a significant position, capturing a substantial 38% of the market’s revenue share. This dominance stems in part from its perceived health benefits, as milk chocolate provides essential minerals like iron, copper, potassium, and manganese to Saudi consumers. Milk chocolate’s versatility contributes to its popularity; it’s widely used in applications such as biscuits, cakes, and confectioneries throughout Saudi Arabia, further fueling its market growth. Breaking down the milk market by category, Astute Analytica finds segments including molded, countlines, pouches & bags, and boxed & others.  The sheer variety of sizes available for milk chocolates acts as a key growth driver within the Saudi market, alongside the entry of foreign manufacturers who contribute to the dynamism of this segment. Looking ahead, the Saudi Arabia milk chocolate market, along with the broader market, is anticipated to experience a substantial CAGR through 2032.

Consumer trends reveal that millennial and Gen Z consumers in Saudi Arabia are driving demand for gourmet and artisanal milk chocolates, leading to a 15% growth in premium milk chocolate sales. Brands effectively leveraging digital platforms, especially Instagram, have witnessed a 20% surge in their milk chocolate sales within Saudi Arabia.  While giants like Mars, Mondelez, and Nestle dominate the Saudi Arabian milk chocolate market, it’s worth noting that a majority of the cocoa beans utilized in milk chocolate production within the Kingdom are sourced from West African nations.  Milk chocolate remains one of the most favored chocolate types in Saudi Arabia, sharing the spotlight with the ever-popular dark and white chocolate varieties.

Conventional Chocolate Claims 67.5% of Saudi Market: Here’s Why

Historically, conventional chocolate has been the undeniable leader of the Saudi chocolate market. These chocolates, manufactured without a focus on organic ingredients, currently hold a substantial 67.50% market share. This dominance stems from traditional Saudi chocolate production methods, where roasted whole cocoa beans form the product’s base. These beans, often sourced from West African nations, account for an impressive 41.61% of the market and are transformed into various chocolate types within the Kingdom.

The limited availability of organic chocolate has further cemented conventional chocolate’s dominance. Until recently, organic packaged foods, including chocolate, had limited distribution in Saudi Arabia.  A combination of price sensitivity (organic chocolates can be more expensive) and a potential lack of awareness regarding organic chocolate’s specific benefits may further explain the continued popularity of conventional options. This dominance is clear when examining the biggest players in the Saudi market. International giants like Mars, Mondelez, and Nestle, known primarily for conventional chocolates, have strong brand loyalty in the region. Additionally, fast-food chains like McDonald’s, Pizza Hut, and Burger King often feature conventional chocolate in desserts and enjoy significant popularity in Saudi Arabia.

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Low Priced Chocolate are Highly Popular in Saudi Arabia Chocolate Market

In 2023, low-priced chocolates held a significant 48.51% share of the Saudi Arabian chocolate market, highlighting the strong demand for affordable options within the mass market. This popularity stems from several factors, including Saudi Arabia’s high chocolate consumption rates, where affordable options enable regular enjoyment. Additionally, chocolate holds a place in gifting traditions, and low-priced alternatives make it an accessible choice for celebrations and expressions of hospitality.  These affordable chocolates allow consumers to enjoy a daily indulgence without significant expense. While low-priced chocolates reign, consumer preferences are shifting.  Milk chocolate remains the most popular, followed by dark and white varieties, while sugar-free options receive less favorable responses. Notably, younger, highly educated Saudi consumers demonstrate stronger brand loyalty.  Older and more educated consumers lean towards manufacturer brands over private labels.

Despite the dominance of affordable chocolate, a clear trend towards premiumization is emerging. Urban millennials and Gen Z consumers are driving the demand for premium and artisanal chocolates. This shift is reflected in projections that retail value growth will slightly outpace volume growth. It further indicates that Saudi consumers are becoming increasingly willing to pay more for chocolates with transparent sourcing and those that reflect positive social impact initiatives. The digital transformation has reshaped the Saudi chocolate market. A surge of over 50% in online chocolate sales within the past two years emphasizes how e-commerce platforms, digital payments, and targeted marketing fuel this change.  Saudi Arabia’s tech-savvy younger demographic, a significant portion of the chocolate consumer base, is at the forefront of this digital revolution in the chocolate market.

Saudi Arabia Chocolate Market Key Players

  • Local Players
    • Aani & Dani
    • Artisan du Chocolat
    • Bateel
    • Bostani Chocolate
    • Al Nassma
    • Said Dal 1923
    • Other Prominent Players
  • Global Players
    • Lindt & Sprüngli
    • Endangered Species Chocolate
    • Ferrero S.p.A.
    • Godiva Chocolatier
    • Ghirardelli Chocolate Company
    • Guylian Belgian Chocolates
    • La Maison du Chocolat
    • Läderach
    • Neuhaus Company
    • Patchi
    • Russell Stover Chocolates, Inc.
    • The Kroger Co.
    • Valrhona
    • Nestle S A
    • Barry Callebaut
    • The Hershey Company
    • Fazer Group
    • Meiji Co., Ltd
    • Mondelez International, Inc.
    • Saadeddin
    • Other Prominent Players

Key Segmentation:

By Type

  • Dark Chocolate
  • White Chocolate
  • Milk Chocolate
  • Filled Chocolate
  • Others

By Category

  • Organic
  • Conventional

By Ingredients

  • Cocoa Beans
  • Cocoa Butter
  • Sweeteners
  • Chocolate Liquor
  • Others

By Pricing

  • High
  • Medium
  • Low

By Distribution Channel

  • B2B (Direct Sales)
  • B2C (Indirect Sales)
    • Online
    • Offline
      • Supermarket/Hypermarket
      • Convenience/Retail Stores
      • Others

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About Astute Analytica

Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.

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