CAIRO: The Middle East is one of the 10 largest confectionary markets in the world, according to a recent study by TNS Media Intelligence.
The region’s confectionary market, which has grown by 15 percent over the last three years, is currently valued at $113 billion.
Statistics reveal that the Gulf is particularly fueling the boom, with Saudi Arabia and Qatar experiencing a growth in sales of around 24 percent in this sector.
Chocolate and sweet sales have also steadily grown in Egypt, at a rate of 2.5 percent annually since 2001, with the market now valued at $382 million.
Chocolate sales are particularly strong, with annual sales averaging $4.2 billion. Major multinational companies such as Cadbury, Mars Inc., Nestle and Kraft largely occupy the market.
In Egypt alone, Mars Inc. has a 50 percent share of the confectionary market. However, Middle Eastern companies, such as Iranian Dadash Baradar, Israeli Strauss-Elite and Lebanese Gandour, are currently engaged in a battle for a greater proportion of potential profits.
The luxury end of the chocolate market is also undergoing development.
Swiss and Belgian chocolates have become increasingly popular, with established companies such as Confiserie Sprunglie experiencing notable success.
Premium quality Middle Eastern chocolatiers such as Lebanese Patchi and Syrian Ghraoui have also seen an encouraging growth in sales.
Although sweet sales are not as spectacular, there is still a strong rural market. In Egypt, sugar confectionary possesses 82 percent of the market.
The uptrend was attributed to massive population growth; the high proportion of young consumers in the region (20 percent of the Middle East’s population is aged between 15 and 24); and a rise in disposable income per capita.
Another factor cited is the important cultural role of sweets in Middle Eastern society. The exchange of confectionary gifts during Islamic holidays has become increasingly popular, leading chocolate and sweet sales to surge during these periods.
Trixee Loh, senior vice president of Dubai World Trade Center, said, “The sweets and confectionery market in the region will continue to see positive growth. As a result we are seeing many brands investing to gain market share with many product innovations, new flavors, and packaging ideas.
Such a positive outlook for this growing sector contrasts heavily with the wider economic instabilities, which have been affecting the region, largely due to recent instabilities in the oil market as well as the global economic crisis.
