Middle East And Africa Confectionery Market Size (2024-2030)

The Middle East And Africa Confectionery Market was valued at USD 95 billion in 2023. Over the forecast period of 2024-2030, it is projected to reach USD 141.90 billion by 2030, growing at a CAGR of 5.90%.

Confectionery refers to the method of combining or processing ingredients to create a sweet or flavorful treat, typically foods rich in sugar and carbohydrates. Consequently, confectionery processing equipment pertains to the machinery employed to manufacture confectionery items such as chewing gum, gummies, jellies, hard candies, and soft confections.

Consumer habits, tastes, and preferences continue to evolve, stimulating innovation in the confectionery sector and driving market growth. Manufacturers are expanding their product offerings by incorporating functional ingredients, organic herbal fillings, tropical fruits, and nut-based exotic flavors to meet shifting consumer demands. Additionally, the trend of gifting confectionery items like cookies, chocolates, and bakery goods has significantly contributed to market expansion in recent years. Brands are deploying unique and engaging strategies to capture consumer attention, as many confectionery purchases are driven by impulse buying.

Key Market Insights:

Urbanization and globalization have expanded the availability and accessibility of confectionery products through supermarkets, convenience stores, online retail platforms, and specialty shops. The convenience-oriented lifestyles of urban consumers contribute to increased impulse purchases and on-the-go snacking behaviors. Modern urban lifestyles and a preference for convenience drive impulse purchases and on-the-go snacking among consumers.

Middle East And Africa Confectionery Market Drivers:

Product Innovation drives market growth.

Innovation, processing, and packaging are the key drivers of market growth in the confectionery industry. Health awareness, consumer consciousness, and diverse eating habits stimulate innovation. Manufacturers expand their product lines by incorporating functional ingredients, organic herbal fillings, tropical fruits, and nut-based or exotic flavors to meet evolving consumer demands. Innovative packaging, such as attractive jars, family-sized packs, resealable options, and bags and tubs, also boost product sales.

Retail Market Expansion increases market growth.

The retail industry encompasses companies and individuals who sell finished products to end users. Confectionery products are extensively available through various retail channels including hypermarkets, supermarkets, convenience stores, discounters, forecourt retailers, and grocery stores. Among these channels, internet retailing, discounters, and convenience stores are the sectors experiencing the most rapid growth in the confectionery industry. These retail outlets serve as effective marketing tools, enhancing brand exposure and creating a premium image for various confectionery products.

Middle East And Africa Confectionery Market Restraints and Challenges:

An increase in Health Awareness hinders market growth.

Sugar is widely recognized as a major contributor to the rising rates of obesity and diabetes. A survey by Credit Suisse Equity Research revealed that 86% of medical professionals associate obesity with high sugar consumption. Consequently, growing health awareness among consumers has led to a decline in the sales volume of sugar confectionery products.

Middle East And Africa Confectionery Market Opportunities:

An increase in Demand for Organic and Premium Candies creates opportunities.

The trend towards organic and premium candies has drawn a broader consumer base. Many consumers are willing to pay a premium for organic candies, perceiving them as having added benefits. The high acceptance of organic chocolates, which are rich in antioxidants, has also been noted. The market for dark and organic sweets is experiencing significant growth, driven by the health benefits associated with dark chocolate and its pure ingredients.

MIDDLE EAST AND AFRICA CONFECTIONERY MARKET REPORT COVERAGE:

Middle East And Africa Confectionery Market Segmentation:

Middle East And Africa Confectionery Market Segmentation- By Product:

• Hard Candies
• Chocolates
• Soft Confectionery
• medicated confectionery
• Chewing Gums
• Gummies and Jellies
• Others

The chocolate segment was the largest contributor to the market during the forecast period. Chocolate is classified based on its cocoa content. Milk chocolate, containing 10% cocoa, makes up over 50% of all chocolate consumption. Dark chocolate has more than 60% cocoa. Chocolate confectionery includes boxed assortments, tablets, seasonal chocolates, countlines, alfajores, bagged soft lines, chocolates with toys, and others. Key raw materials in chocolate confections are cocoa butter, milk, lecithin, and flavorings such as vanillin. The production process involves four steps: roasting, grinding, mixing/refining, and conching. Critical factors for manufacturers during processing include gloss retention, bloom stability, flavor, ideal viscosity, and cost. Dark chocolate is rich in antioxidants, helping to prevent cardiac diseases, control blood pressure, and reduce wrinkles.

However, the medicated confectionery segment is expected to experience rapid growth during the forecast period. The growing incidence of minor ailments and the rising consumer demand for over-the-counter medications and dietary supplements have led to an increased incorporation of active ingredients such as antacids, vitamins, and herbal extracts in confectionery products. These factors significantly contribute to the expansion of the medicated confectionery segment.

Middle East And Africa Confectionery Market Segmentation- By Age Group:

• Children
• Adult
• Geriatric

The adult segment led the market during the forecast period. The demand for sugar-free gum has increased due to health concerns about snacking calories and sugar intake. Consequently, gum marketers are developing fun and flavorful products using non-caloric sweeteners. Additionally, the rising trend of veganism among adults has increased the demand for plant-based milk alternatives in bakery confections, including milk from oats, almonds, coconut, flax, and cashews. Manufacturers can view this as an opportunity to create lucrative growth prospects in the fine bakery wares segment.

Middle East And Africa Confectionery Market Segmentation- By Price Point:

• Economy
• Mid-range
•  Luxury

The economy segment led the market during the forecast period. Value is a significant trend in most markets. Confectionery products in this category are commonly sold in distribution outlets like supermarkets and hypermarkets, offering various options and multiple purchase deals. These factors collectively create lucrative opportunities for the economy segment.

Nevertheless, the mid-range segment is anticipated to experience a higher Compound Annual Growth Rate (CAGR) throughout the forecast period. Factors driving this growth include increasing disposable incomes, product innovations, evolving consumer preferences and lifestyles, and intensified marketing and promotional efforts. These elements collectively contribute to the expansion of the confectionery market within the mid-range product segment.

Middle East And Africa Confectionery Market Segmentation-  By Distribution Channel:

• Supermarket/hypermarket
• Convenience stores
• Pharmaceutical & drug stores
• Food services
• Duty-free outlets
• E-commerce
• Others

The supermarket/hypermarket segment was the largest contributor to the market during the forecast period. The growth of these retail formats in both developed and developing economies has driven the segment's rise in the confectionery market. The one-stop shopping experience provided by supermarkets and hypermarkets is highly popular among consumers. These stores are typically located in easily accessible areas and offer a wide variety of products at competitive prices. This convenience allows customers to fulfill all their shopping needs in one place, saving time and increasing the appeal of this market segment.

The emergence of online portals for confectionery products, particularly in developing countries with large internet user bases, is driving market growth. These platforms offer various discounts and incentives to attract customers to purchase confectionery items online. The advancement of technology further enhances the growth of online businesses, facilitating easier access and convenience for consumers to shop for confectionery products from their homes.

Middle East And Africa Confectionery Market Segmentation- by Region

• United Arab Emirates
• Saudi Arabia
• Israel
• South Africa
• Egypt
• Rest of the Middle East and Africa

Saudi Arabia, UAE, and Qatar are among the most lucrative markets due to their high disposable incomes and substantial expatriate populations. These markets exhibit a strong preference for premium and innovative confectionery products, fueled by affluent consumers and exposure to trends.

Egypt and Morocco present significant opportunities driven by large, youthful populations and rapid urbanization. These markets feature a blend of traditional and modern confectionery products, with consumers increasingly interested in premium and healthier options.

COVID-19 Pandemic: Impact Analysis

The COVID-19 outbreak had a profound impact on the confectionery market. Stringent regulations and lockdown measures throughout 2020 disrupted various aspects of the confectionery business, including raw material supplies (such as agricultural produce, food ingredients, and intermediate food products), trade and logistics, demand-supply fluctuations, uncertain consumer demand, and workforce issues at industrial levels. One significant effect was a decline in confectionery sales due to reduced gifting and impulse buying behaviors among consumers during the lockdown period.

Latest Trends/ Developments:

June 2024 - The Functional Chocolate Company has enhanced its market presence by securing a prominent listing with Target and its affiliated online platforms. The US-based company offers a unique blend of rich dark chocolate that is naturally gluten-free and vegan, infused with a specialized mix of nutraceuticals. These formulations are tailored to address specific health needs, incorporating vitamins, minerals, botanicals, and amino acids. There is a growing demand for these specialized combinations due to their efficacy in addressing various common health concerns such as energy, focus, sleep, stress, and more.

February 2024 - Ravalgaon Sugar Farm Ltd. announced that Reliance Consumer Products (RCPL) has acquired all intellectual property rights, including recipes and trademarks, from Ravalgaon, the renowned maker of sugar-boiled sweets, for Rs 27 crore. This acquisition is part of RCPL's strategy to revive historic Indian brands, similar to their previous successful acquisition of the Campa soft drink brand. Ravalgaon holds ownership of nine confectionery brands, including well-known names like Pan Pasand and Coffee Break.

Key Players:

These are the top 10 players in the Middle East And Africa Confectionery Market: -

1. Ferrero Group
2. Mars Incorporated
3. Meiji Co. Ltd.
4. The Hershey Company
5. Nestlé S.A.
6. Chocoladefabriken Lindt & Sprüngli AG
7. Ezaki Glico Co. Ltd.
8. Pladis
9. Mondelez International Inc.
10. Haribo GmbH & Co. K.G.