Uae Chocolates Market

Over the last few years, the demand for chocolates in the UAE has been growing on account of increasing young population, rising per capita income coupled with various new domestic and international chocolate companies foraying the market. Demand for dark chocolates has been growing as they are rich in antioxidants, and have the potential to prevent cardiac diseases as well as several other diseases. Furthermore, rising standard of living in the country has brought the social status of chocolate down from a luxury to an everyday commodity. Expanding distribution channels, growing number of point of sales, increasing trend of setting up exclusive stores and sales through online channels are few of the major factors anticipated to further boost demand for chocolates in the UAE over the next five years. However, fluctuating raw material prices, dependency on unstable markets for supply of cocoa, counterfeit products, and growing health concerns are the major challenges restricting the growth of the UAE chocolate market.

According to “UAE Chocolates Market By Type, By Age Group, By Point of Sale, Competition Forecast and Opportunities, 2011 – 2021”, the chocolate market in the UAE is projected to grow at a CAGR of over 8% during 2016 – 2021. The country’s chocolate market has been segmented into three categories, namely, countline, molded and boxed chocolates. Among these categories, the countline segment dominated the UAE chocolate market in 2015, and the segment is anticipated to maintain its dominance over the next five years as well. However, boxed chocolate segment is anticipated to grow at faster pace over the next five years, owing to growing demand for premium chocolates from high income consumers. Region-wise, Dubai was the largest chocolate market in the UAE in 2015, on account of high urbanization and increasing number of tourists. Few of the leading players operating in the UAE chocolate market include Mars GCC, Ferrero SpA, Nestlé Middle East, Mondelez...