Report Overview

Saudi Arabia Chocolate Market- Industry Trends & Forecast Report 2028

The Saudi Arabia chocolate market is estimated to grow at the CAGR of 4.5% during the forecast period 2022-2028. The high purchasing power of Saudi customers along with the availability of a wide range of chocolates suiting the taste of consumers acts as a major driving factor for the market growth. Furthermore, the emerging trend of chocolate as an alternative to traditional sweets during seasonal and festival occasions along with the easy availability of products through online stores is anticipated to drive the Saudi Arabia chocolate market growth in the forecast period.

Saudi Arabia Chocolate - Overview

Chocolate is an edible product that is produced from roasted and ground cocoa pods. It is one of the most consumed and popular food products in the food processing sector among consumers across the globe. The main reason behind the growing confectionery industry is an increase in demand for chocolates. Chocolates are excellent pressure suppressants and anti-aging confectionery items. Dark chocolate is known to have health benefits such as reducing the risk of cardiovascular diseases and improving blood flow.

Saudi Arabia Chocolate Market Forecast and Trends

Growth Drivers

Health Benefits Of Chocolates

The health benefits attributed to the consumption of chocolates act as a major driving factor for the growth of the global chocolate market. The moderate consumption of chocolate offers various health benefits such as balancing the immune system and reducing oxidative stress, combating diabetes, improving brain function, boosting athletic performance, etc. According to John Hopkins Medicine, the antioxidants in dark chocolate helps in lowering blood pressure, reducing the risk of clotting, and increasing blood circulation to the heart.

Increasing Popularity Of Online Stores

The sales of chocolate through online stores are gaining significant traction, especially after the pandemic. Several consumer goods websites such as Amazon, Nada Direct, Khoder, and More, etc., are emerging with a wide range of products and chocolate brands. Certain platforms such as Amazon.com also sell imported chocolates in different regions that are unavailable in local stores. With the increasing penetration of smartphones and mobile wallets and online payment systems, the online sales of chocolate are projected to surge in the forecast period, propelling the overall market growth.

Restraints

Increasing Cost Of Production

The increasing cost of production is stated as one of the major restraining factors for the growth of the Saudi Arabia Chocolate market. This cost includes raw materials, labor wages, along with rising property prices. Saudi Arabia is heavily dependent on the import of chocolate from other countries since its production is not economically viable in the country. This significantly increases the cost of production. Moreover, the country is also dependent on migrants for labor, which is further acting as a financial burden on production.

Impact of COVID-19 on Saudi Arabia Chocolate Market

The Saudi Arabia chocolate market was negatively impacted by the sudden COVID-19 pandemic outbreak. Although Saudi Arabia did not register many casualties like other countries, the monarchy still imposed strict social distancing restrictions during the pandemic. As a result, the supply of imported chocolates was cut down despite surging demand in the market. This created a huge demand and supply gap. Furthermore, the demand for premium chocolates also registered a significant decline during this period due to a halt in the operations of other industries such as hospitality.

Saudi Arabia Chocolate Market - By Type

Based on type, the Saudi Arabia chocolate market is segmented into milk chocolate, dark chocolate, and white chocolate. The milk chocolate segment accounts for the largest market share owing to its health benefits. The consumption of milk chocolate provides an abundance of essential minerals such as iron, copper potassium, and manganese. Milk chocolate is also used in various applications such as biscuits, cakes, confectioneries, etc., which is propelling its overall market growth.

Saudi Arabia Chocolate Market - By Category

Based on category, the Saudi Arabia chocolate market is segmented into molded, countlines, pouches & bags, boxed & others. The molded chocolate segment accounts for the largest market share. These molded chocolate bars are plastic wrapped and are easy for consumption by one hand, which makes them extremely popular among consumers. The chocolate brands offer a wide range of molded chocolate bars in different sizes and price ranges. However, the countlines also cover substantial market share owing to the high popularity of wafer chocolates.

Saudi Arabia Chocolate Market - By Distribution Channel

Based on the distribution channel, the Saudi Arabia chocolate market is segmented into retail stores, specialty retailers, and online distributors. The retail and convenience stores segment accounts for the largest market share owing to the large number of privately owned local shops that sell different types of chocolates. However, the online store segment is projected to witness the highest growth rate during the forecast period owing to the increasing popularity of online shops such as Saudi Desert Cart, Kluesa, Tamimi Markets, etc., especially among the younger demographic.

Competitive Landscape

The leading market players of the Saudi Arabia chocolate market are La Via HandMade Chocolates, Badr Chocolate Factory, Krafts Foods, Mars Inc, Unilever Group Strauss Elite, Nestle, Ferrero Group, Hershey Foods Corporation, Shirin Asal Company, and other prominent players.

The market is fragmented with the presence of several multinational and regional industry participants. Local chocolate brands have deep penetration in the market and enjoy consumer inclination. The companies constantly launch new chocolate ranges and premium brands to attract customers and boost their sales. They also adopt competitive strategies such as partnerships, mergers, acquisitions, joint ventures, etc., to stay ahead in the market.

Scope of the Report

By Type

• Milk Chocolate
• Dark Chocolate
• White Chocolate

By Category

• Molded
• Countlines
• Pouches & Bags
• Boxed
• Others

By Distribution Channel

• Retail Stores
• Specialty Retailers
• Online Distributors

1. Research Framework
   1. Research Objective
   2. Type Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation
3. Executive Summary
4. Saudi Arabia Chocolate Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Technological Landscape/Recent Development
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
5. Saudi Arabia Chocolate Market Overview
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Milk
         2. White
         3. Dark Chocolate
      2. By Category
         1. Countline
         2. Tablet
         3. Boxed
         4. Others
      3. By Distribution Channel
         1. Groceries
         2. Hypermarket/Supermarkets
         3. Convenience Stores
         4. Chocolate Boutiques
         5. Online Retail
         6. Others
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Merger, Acquisition, Partnership.)
7. Impact of COVID-19 on Saudi Arabia Chocolate Market Industry
8. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) **.
   1. Krafts Foods
   2. Mars Inc
   3. Nestle
   4. Hershey Foods Corporation
   5. Shirin Asal Company
   6. Ferrero Group
   7. Unilever Group Strauss Elite
9. Key Strategic Recommendations

List of Figures

Figure 1        Saudi Arabia Chocolate Market Segmentation

Figure 2        Saudi Arabia Chocolate Market Value Chain Analysis

Figure 3        Porter’s Five Forces Analysis

Figure 4        Company Market Share Analysis, 2021

Figure 5        Saudi Arabia Chocolate Market Size, By Value (USD Million), 2018-2028

Figure 6        Saudi Arabia Chocolate Market Share, By Type, By Value, 2018-2028

Figure 7        Saudi Arabia Chocolate Market Share, By Category, By Value, 2018-2028

Figure 8        Saudi Arabia Chocolate Market Share, By Distribution Channel, By Value, 2018-2028

List of Tables

Table 1         Saudi Arabia Chocolate Market Size, By Type, By Value, 2018-2028

Table 2         Saudi Arabia Chocolate Market Size, By Category, By Value, 2018-2028

Table 3         Saudi Arabia Chocolate Market Size, By Distribution Channel, By Value, 2018-2028

Table 4         Key Players and Their Offerings

Table 5         Competitive Benchmarking, By Operating Parameters

Table 6         Merger Acquisition, Partnership, Joint-Ventures etc

Table 7         Krafts Foods Company Overview

Table 8         Mars Inc Company Overview

Table 9         Nestle Company Overview

Table 10        Hershey Foods Corporation Company Overview

Table 11        Shirin Asal Company Company Overview

Table 12        Ferrero Group Company Overview

Table 13        Unilever Group Strauss Elite Company Overview

*Financial information in case of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable