A Deep Dive into the GCC Confectionery Market [2025]

The GCC Confectionery Market is an ever-growing segment within the Middle East's vibrant food and beverage industry. Revenue in the confectionery market amounts to US$17.63 billion in 2024. The market is expected to grow annually by a CAGR of 4.51% during 2024-29.

Confectionery accounts for a significant share of the region's overall food market. The market is being driven by factors such as rising disposable incomes, rapid urbanization, and evolving consumer preferences. This upward trajectory aligns with global trends of increased demand for indulgent yet healthier food options.

The confectionery market in the Gulf Cooperation Council (GCC – which includes Saudi Arabia, the UAE, Kuwait, Qatar, Oman, and Bahrain) exhibits strong growth potential. A young, diverse, and multicultural population has fueled demand for a variety of products ranging from chocolates and sugar confectionery to ice cream and baked goods. Countries like Saudi Arabia and the UAE lead the region, leveraging high levels of food consumption and investment in food manufacturing to dominate the market.

Despite economic challenges, the GCC confectionery sector has shown resilience, adapting to changing consumer preferences for premium, organic, and sugar-free options. With governments focusing on economic diversification and sustainability, the confectionery market is set to flourish further, creating ample opportunities for local and international brands to expand their footprint.

Overview of the GCC Confectionery Market

The GCC confectionery market is a dynamic and steadily expanding segment within the broader food and beverage industry. Valued at approximately US$17.63 billion in 2024, the market is segmented into four primary categories: chocolate confectionery, sugar confectionery, ice cream, and preserved pastry goods and cakes. Among these, chocolate confectionery dominates, driven by the region's cultural inclination toward gifting and indulgent treats, especially during festivals and celebrations. The demand for sugar confectionery and ice cream is also substantial, spurred by the region's hot climate and a growing preference for on-the-go snacks.

Market Growth and Trends

The market's annual growth rate of 4.51% from 2024 to 2028 is attributed to increasing disposable incomes, urbanization, and evolving consumer preferences. Notably, health-conscious consumers are shifting toward sugar-free, organic, and plant-based confectionery options, prompting manufacturers to innovate and expand their product portfolios.

Retail and Distribution

The region boasts a robust retail infrastructure, with hypermarkets and supermarkets like Carrefour, Lulu, and Spinneys leading sales. The e-commerce sector is also gaining traction, especially post-COVID-19, as consumers increasingly turn to online platforms for convenience. Convenience stores remain crucial for impulse purchases, while tourism contributes significantly to confectionery sales in hotels and resorts.

Learn more about the retail market landscape in this region. Check out our list of the top 12 supermarkets in Dubai and the UAE.

Regional Insights and Pricing

Saudi Arabia and the UAE dominate the GCC market, with Saudi Arabia accounting for over 55% of regional food consumption. However, price fluctuations in raw materials such as cocoa, sugar, and dairy have posed challenges. Recent trends show manufacturers absorbing costs or reformulating recipes to maintain affordability without compromising quality.

The GCC confectionery market's ability to adapt to global trends and local preferences, combined with a strong retail and distribution network, ensures its continued growth.

Find out who the top food distributors in the UAE and Dubai are.

Key Drivers of the GCC Confectionery Market

Rising Disposable Incomes and Urbanization

The GCC's burgeoning middle class and increasing urbanization are key factors propelling the confectionery market. As disposable incomes grow, consumers are spending more on premium and indulgent treats, favoring high-quality and innovative products. Urbanization has also spurred demand for convenient, ready-to-eat snacks that fit into fast-paced lifestyles. Countries like Saudi Arabia and the UAE, with their expanding metropolitan areas, are at the forefront of this trend, driving robust sales of confectionery products.

Health and Wellness Trends

Health-conscious consumers are reshaping the GCC confectionery market by demanding sugar-free, gluten-free, and organic options. Governments have implemented regulations like sugar taxes and mandatory front-of-pack nutrition labels, encouraging manufacturers to innovate. For example, dark chocolate and plant-based treats have gained popularity for their lower sugar content and natural ingredients, aligning with regional goals for healthier lifestyles.

Cultural Traditions and Gifting

Cultural practices of gifting confectionery during celebrations like Eid and Ramadan significantly boost market demand. Premium chocolates, sugar-based sweets, and locally inspired treats are especially popular. This tradition not only sustains sales but also creates opportunities for brands to introduce regionally tailored products, such as Halal-certified options and products incorporating traditional Arabic flavors like dates and pistachio.

Tourism and Expanding Expatriate Communities

The GCC's focus on tourism and its growing expatriate population are critical market drivers. Visitors and expatriates contribute to a diverse consumer base, increasing demand for both traditional Arabic confectionery and international brands. Luxury hotels and resorts prominently feature premium confectionery in their offerings, further driving sales. For instance, Dubai’s thriving tourism sector enhances demand for globally recognized brands and exclusive local products.

Digital Transformation and E-commerce Growth

Digital platforms are transforming the GCC's confectionery market. Online marketplaces and food delivery apps have become essential channels for purchasing confectionery, offering convenience and variety. Enhanced by AI and big data, these platforms provide personalized recommendations and foster direct connections with consumers. This shift is particularly evident post-COVID-19, with brands increasingly investing in e-commerce infrastructure to capitalize on changing consumer habits.

Evolving Consumer Trends in the GCC Confectionery Market

Demand for Healthier Options

Health-conscious consumers in the GCC are driving demand for sugar-free, low-calorie, and organic confectionery products. Unlike traditional snacks, these products align with a growing preference for guilt-free indulgence. Regulatory measures, such as sugar taxes and labeling reforms, have accelerated this shift, encouraging manufacturers to introduce healthier alternatives. Notably, products like dark chocolate and plant-based treats are gaining traction for their natural ingredients and perceived health benefits. This trend reflects an overarching focus on wellness, particularly among younger and expatriate populations.

Preference for Premium and Luxury Products

As disposable incomes rise, consumers in the GCC are increasingly opting for premium and luxury confectionery items. These include artisanal chocolates, gourmet pastries, and products made with sustainably sourced ingredients. Premiumization is further fueled by cultural practices like gifting during festivals, where high-end packaging and exclusive flavors play a significant role. For instance, camel milk chocolates and exotic flavors like saffron and pistachio resonate with affluent buyers seeking unique experiences.

Influence of Social Media and Exclusivity

Social media platforms have become powerful tools for shaping purchasing behaviors in the GCC. Viral campaigns and influencer endorsements often elevate products to must-have status. Exclusive launches, like the "Dubai Chocolate" phenomenon, highlight how scarcity and storytelling captivate consumers. Limited-edition products and regional flavors amplified by digital marketing channels are increasingly driving impulse purchases.

Cultural and Regional Preferences

Confectionery consumption in the GCC is deeply rooted in cultural traditions. Flavors such as rose, cardamom, and date-based fillings reflect regional tastes, offering a connection to heritage. During Ramadan and Eid, sweet treats like baklava, maamoul, and premium chocolates see a surge in demand. These seasonal influences shape buying patterns and encourage brands to create culturally tailored product lines.

Convenience and On-the-Go Snacking

Busy lifestyles and urbanization are boosting demand for portable, ready-to-eat confectionery options. Products like snack bars, individually wrapped chocolates, and resealable candy packs cater to consumers seeking convenience. Tourists and working professionals, in particular, favor these options for their accessibility and portion control. Retailers are also responding with prominently displayed impulse-buy sections in hypermarkets and convenience stores.

Key Challenges Facing the GCC Confectionery Market

Price Volatility of Raw Materials

The confectionery industry in the GCC is heavily impacted by fluctuating prices of key raw materials such as cocoa, sugar, and dairy products. As most raw materials are imported, changes in global market conditions, supply chain disruptions, and geopolitical factors drive up costs. Manufacturers often face the challenge of either absorbing these costs or passing them onto consumers, potentially affecting demand. Additionally, the reliance on imported ingredients leaves the market vulnerable to currency fluctuations and global inflation trends.

Heavy Reliance on Imports

The GCC’s arid climate and limited agricultural resources restrict local food production, making the region heavily reliant on imported confectionery products and raw materials. Over 85% of the region’s food requirements are imported, exposing the market to supply chain vulnerabilities, increased tariffs, and logistical challenges. Recent disruptions, such as the COVID-19 pandemic, highlighted the fragility of the supply chain, emphasizing the need for localized production and improved infrastructure.

Health and Regulatory Pressures

Increasing health awareness and government-imposed regulations, such as sugar taxes and mandatory labeling requirements, have posed challenges for manufacturers. These measures aim to curb rising obesity rates in the region but require significant product reformulation and innovation. While adapting to these regulations is essential, it often incurs higher production costs and delays in launching new products, which can strain smaller players in the market.

Intense Competition

The GCC confectionery market is becoming increasingly competitive, with global brands dominating shelves alongside emerging local players. The entry of premium international brands has heightened consumer expectations, making it difficult for smaller or less-established companies to stand out. Additionally, maintaining brand loyalty in a saturated market where consumers are drawn to novelty and exclusivity remains a significant challenge.

Sustainability Concerns

Environmental challenges, such as water scarcity, arid conditions, and high temperatures, limit local production and strain the region’s reliance on non-renewable resources. Consumers are increasingly prioritizing sustainability, pressuring manufacturers to adopt eco-friendly practices such as sustainable sourcing, waste reduction, and recyclable packaging. However, implementing these measures often requires substantial investments, which not all businesses can afford.

Breakdown of the GCC Confectionery Market

1. Chocolate Confectionery

Chocolate confectionery is the largest and most popular segment in the GCC, driven by high demand during festivals, gifting occasions, and daily indulgence. Premium products, such as artisanal chocolates and sustainably sourced cocoa brands, dominate the luxury market. Additionally, dark chocolate and sugar-free options are gaining traction as health-conscious trends rise. Major brands include Mars Inc. (Galaxy, Snickers), Mondelez International (Cadbury), Ferrero (Ferrero Rocher, Nutella), and Al Nassma, famous for camel milk chocolate.

2. Sugar Confectionery

The sugar confectionery segment, including candies, gums, and jellies, ranks second in size. Its affordability and appeal to younger demographics make it a staple across the GCC. Products like chewy and hard-boiled candies are highly popular due to their portability and longer shelf life, catering to busy lifestyles. Leading players in this segment include Perfetti Van Melle (Mentos, Chupa Chups), Haribo, and Mondelez International (Trident, Halls). The demand for sugar-free and natural ingredient options is also growing.

3. Ice Cream

The ice cream segment thrives in the GCC's hot climate, making it a favorite for both locals and tourists. Premium and novelty ice creams, such as plant-based and low-calorie options, are gaining traction among health-conscious consumers. Retail giants like Baskin-Robbins, Nestlé, Häagen-Dazs, and local players like House of Pops dominate this segment, offering diverse flavors and formats. Seasonal demand peaks during the summer, with increasing sales through retail stores and foodservice channels.

4. Preserved Pastry Goods and Cakes

Although the smallest segment, preserved pastry goods and cakes are steadily growing due to their convenience and appeal for on-the-go snacking. Individually wrapped cakes and pastries are especially popular in supermarkets and convenience stores. Brands like Eurocake (Dofreeze), McVitie’s, and Bauli lead the market with diverse product offerings, including healthier options with reduced sugar and high-protein content. This segment sees increased demand during Ramadan and other festive periods.

Top Confectionery Companies in the GCC

Leading Confectionery Companies

1. Mars, Incorporated
   A global leader, Mars offers popular brands like Snickers, Galaxy, and M&M's. Its strong presence in the GCC is bolstered by a diverse product portfolio and widespread distribution networks.
2. Nestlé S.A.
   Known for KitKat, Quality Street, and Smarties, Nestlé caters to the GCC's demand for premium chocolates and confectionery items. The company's commitment to innovation and quality has solidified its market position.
3. Mondelez International
   With brands like Cadbury Dairy Milk, Toblerone, and Oreo, Mondelez addresses the region's sweet tooth through a mix of chocolates, biscuits, and gums. Its extensive distribution channels ensure product availability across the GCC.
4. Ferrero Group
   Offering Ferrero Rocher, Nutella, and Kinder, Ferrero appeals to consumers seeking premium confectionery experiences. The brand's focus on quality and exclusivity resonates well in the GCC market.
5. Perfetti Van Melle
   Known for Mentos and Chupa Chups, Perfetti Van Melle provides a variety of sugar confectionery products that enjoy widespread popularity across the GCC. The company's innovative flavors and marketing strategies enhance its regional appeal.
6. Al Nassma Chocolate LLC
   Based in the UAE, Al Nassma specializes in camel milk chocolates, offering a unique product that blends tradition with luxury. Its niche offerings cater to both locals and tourists seeking authentic regional flavors.
7. Patchi
   A Lebanese brand with a significant presence in the GCC, Patchi is renowned for its premium chocolates and elegant packaging, making it a favored choice for gifting during festive occasions.
8. IFFCO Group
   Headquartered in the UAE, IFFCO produces a range of confectionery items under various brands, focusing on quality and affordability to cater to diverse consumer segments.
9. Al Othman Agricultural Production and Processing Co. (NADA)
   A Saudi Arabian company, NADA offers a variety of dairy and confectionery products, emphasizing freshness and quality to meet local consumer preferences.
10. United Confectionery Company (UCC)
    Operating in the GCC, UCC provides a range of chocolates and sweets, leveraging modern production techniques to deliver high-quality products.

Innovative Regional Startups

House of Pops
A UAE-based startup, House of Pops specializes in all-natural, vegan, and gluten-free popsicles. Their commitment to health-conscious indulgence has garnered a loyal customer base seeking guilt-free treats.

Mirzam Chocolate Makers
Located in Dubai, Mirzam produces bean-to-bar chocolates inspired by traditional Arabian flavors, such as dates and spices, offering a unique twist to conventional chocolate products.

Co Chocolat
A UAE startup focusing on healthy, organic chocolates, Co Chocolat sources ingredients directly from farmers, emphasizing sustainability and wellness in their product offerings.

Forrey & Galland
Based in Dubai, this luxury chocolatier blends French expertise with Middle Eastern flavors, creating artisanal chocolates that cater to the region's sophisticated palate.

Opportunities in the Confectionery Market in the GCC

The GCC confectionery market offers abundant opportunities for growth and innovation, driven by evolving consumer preferences, cultural practices, and regional economic dynamics. Here are the key opportunities for businesses in this lucrative market:

• Festive Occasions and Gifting Culture
  Festivals such as Ramadan, Eid, and National Day celebrations are significant opportunities for confectionery brands. Premium chocolates, sugar-based sweets, and traditional treats like baklava see a sharp rise in demand during these times. Brands can leverage cultural preferences for gifting to introduce seasonal products with customized packaging tailored to local tastes.
• Expanding Tourism Sector
  With GCC countries like the UAE and Saudi Arabia heavily investing in tourism, there is an increased demand for confectionery items in hotels, resorts, and tourist-centric retail outlets. Unique products like camel milk chocolates or sweets infused with local flavors, such as dates and saffron, have strong appeal among tourists.
• Premiumization and Luxury Products
  As disposable incomes rise, GCC consumers are showing greater interest in high-quality, premium confectionery. Artisanal chocolates, gourmet pastries, and sustainably sourced ingredients cater to this demand. Brands can tap into this segment with exclusive flavors and luxury packaging to differentiate themselves.
• Health-Conscious Offerings
  The rising demand for sugar-free, organic, and allergen-free confectionery presents an opportunity for brands to innovate and capture market share. Products that promote functional benefits – such as high-protein snack bars or confectionery enriched with probiotics – are especially appealing to health-conscious consumers.
• On-the-Go Snacking
  Urban lifestyles and busy schedules are boosting demand for portable, individually wrapped products that provide convenience. Snack bars, resealable candies, and single-serve ice cream packs are ideal for this market.
• E-commerce and Digital Platforms
  The growing popularity of online shopping and food delivery apps offers a direct channel to consumers. Brands can expand their reach and cater to niche audiences by establishing a strong digital presence and offering limited-edition online exclusives.

FAQs

1. How big is the GCC confectionery market?

The GCC confectionery market is valued at approximately $17.63 billion in 2024, with an annual growth rate of 4.51% projected through 2029. This robust growth reflects rising disposable incomes, evolving consumer preferences, and the region’s strong cultural and economic dynamics.

2. What is the leading product type in the GCC confectionery market?

Chocolate confectionery leads the market in the GCC, driven by its popularity across all demographics and its integral role in gifting during cultural events. Premium and innovative products, such as dark and sustainably sourced chocolates, further strengthen its dominance.

3. Which are the top companies in the GCC confectionery market?

Key players include Mars Inc. (Snickers, Galaxy), Nestlé (KitKat, Quality Street), Ferrero (Ferrero Rocher, Nutella), and Mondelez International (Cadbury, Oreo). These companies dominate the market with their extensive product ranges, strong brand presence, and innovative offerings.

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