GCC Premium Chocolate Market By Product (White Chocolate, Milk Chocolate, Dark Chocolate), By Category (Organic, Regular, Gluten-Free, Sugar-Free, Others), By Distribution Channel (Supermarket/Hypermarket, Specialty Stores, Online, Others), By Country, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

GCC Premium Chocolate Market was valued at USD 1.23 Billion in 2024 and is expected to reach USD 2.45 Billion by 2030 with a CAGR of 6.64 % during the forecast period. The GCC Premium Chocolate Market is experiencing steady growth, driven by several key factors such as increasing disposable incomes in the region have led to greater consumer spending on luxury items, including premium chocolates. A shift towards high-quality, artisanal, and ethically sourced products is also contributing to the rise in demand for premium chocolates. Consumers are increasingly seeking indulgent experiences and unique flavors, leading to a preference for innovative chocolate offerings. Also, the growing influence of international brands and the expanding presence of gourmet chocolate retailers have boosted market accessibility. The rise of gifting culture during holidays and special occasions further supports the market, along with a heightened awareness of premium ingredients like organic cocoa and fair-trade practices.

Key Market Drivers

Rising Chocolate Consumption Across the Region

Rising chocolate consumption across the GCC region is one of the key drivers fuelling the growth of the premium chocolate market. As consumer preferences evolve, there is a noticeable shift towards higher-quality, indulgent chocolate products. This is driven by several factors, including increasing disposable incomes, which enable consumers to spend more on luxury and premium items. With a growing interest in healthier lifestyles, many consumers are opting for premium chocolates made with high-quality, organic, and ethically sourced ingredients. Also, the GCC market has seen a rise in the demand for chocolates with unique flavors, innovative textures, and high cocoa content, which are often associated with premium products. Another factor contributing to the rise in chocolate consumption is the increasing popularity of gifting chocolates, particularly during festive seasons and special occasions. Premium chocolates are often seen as an ideal gift due to their luxury appeal and unique packaging. This trend is further supported by a growing number of international gourmet chocolate brands entering the GCC market, creating more options for consumers. The younger population in the region, with their increasing exposure to global trends, is also contributing to the rise in demand for premium chocolates. Social media and influencer culture have promoted luxury and artisanal chocolate consumption as part of a lifestyle choice. As a result, chocolate has become not just a treat but a form of indulgence, which in turn drives its consumption across the GCC region.

Wide Product Availability

Wide product availability is a significant driver in the growth of the GCC premium chocolate market. As a part of this, according to a recent study, as of 2022, hypermarket and supermarket locations in the United Arab Emirates accounted for 62% of growth in 2022.Over the past few years, premium chocolate brands have increasingly expanded their presence in the region, offering a diverse range of products to cater to evolving consumer preferences. This expansion is supported by the rise of retail channels, including high-end supermarkets, specialty stores, gourmet outlets, and e-commerce platforms, which have made premium chocolates more accessible to a broader audience. International and local chocolate brands are strategically introducing a variety of products, such as dark, milk, and white chocolates, along with unique, innovative offerings like organic, fair-trade, and sugar-free options. These variations cater to a wide range of tastes and dietary preferences, including health-conscious consumers seeking indulgent yet healthier alternatives. Also, the availability of premium chocolate in convenient formats such as bars, truffles, pralines, and assortments appeals to consumers looking for flexibility and personalization in their purchases. E-commerce platforms are playing an increasingly vital role in driving the availability of premium chocolates. Online shopping allows consumers across the GCC region to explore a variety of brands and products that might not be easily accessible in physical stores, enabling global chocolate brands to reach a wider audience. The ease of online ordering, coupled with attractive packaging and the ability to have premium chocolates delivered directly to their doorstep, further boosts the consumption of high-end chocolate products in the region. Also, the growing number of dedicated chocolate boutiques and luxury confectionery shops in major cities such as Dubai, Riyadh, and Doha reflect the region's increasing appetite for premium chocolate offerings. These shops not only provide a range of premium chocolates but also create an exclusive shopping experience, further enhancing the appeal of luxury chocolate among affluent consumers. This wide product availability, through both physical stores and digital platforms, is crucial to sustaining the growing demand for premium chocolates across the GCC.

Increasing Government Support to Strengthen the Chocolate Industry

Increasing government support is playing a pivotal role in strengthening the chocolate industry and driving the growth of the premium chocolate market in the GCC. As a part of this, as of February 2022, the government has entered a Memorandum of Understanding (MoU) with the United Arab Emirates (UAE) Food and Beverage Manufacturers Group, to promote Ghana’s cocoa in the Emirati market. Governments in the region, such as those in Saudi Arabia and the UAE, are focusing on economic diversification and industrial growth as part of their long-term national strategies. This has led to favorable policies, financial incentives, and infrastructure development aimed at boosting the food and beverage sector, including chocolate production. Governments are encouraging local manufacturing by providing subsidies, tax benefits, and logistical support to both international and domestic chocolate brands. These incentives have led to the establishment of chocolate production facilities within the region, reducing reliance on imports and improving supply chain efficiencies. Also, with growing demand for premium chocolates, governments are strengthening trade relationships with cocoa-producing countries to ensure a stable supply of high-quality raw materials, thereby supporting sustainable growth in the chocolate sector. Also, the GCC governments are promoting ethical sourcing practices, such as fair trade and sustainable cocoa production, which align with global consumer preferences for socially responsible products. By regulating and enforcing food safety and quality standards, governments are ensuring that premium chocolates in the region meet international specifications, thus building consumer trust. Through strategic investments, trade support, and industry regulations, the increased government backing is helping to create a competitive and sustainable environment for the growth of the GCC premium chocolate market.                                                                                                                                              

Download Free Sample Report

Key Market Challenges

High Production Cost

High production costs are a significant challenge facing the GCC premium chocolate market. Premium chocolates are often made with high-quality ingredients, such as fine cocoa beans, organic or fair-trade products, and unique flavorings, which come at a premium price. These ingredients, coupled with the need for specialized production techniques and equipment, increase the overall cost of manufacturing. Also, the GCC region relies heavily on imports for raw materials, including cocoa, which further escalates costs due to import duties, transportation expenses, and fluctuations in global commodity prices.Another factor contributing to high production costs is the relatively small scale of local chocolate production in the GCC. As many premium chocolate brands are still in the growth phase in the region, economies of scale have not yet been fully realized, leading to higher per-unit production costs. Also, the need for skilled labor, advanced technology, and stringent quality control measures adds to operational expenses.The high cost of production directly affects the pricing of premium chocolates, making them less accessible to a wider consumer base. While the affluent segment in the GCC may be willing to pay a premium for high-quality products, the pricing remains a barrier for price-sensitive consumers, limiting the potential market size.Overall, managing high production costs while maintaining product quality and competitiveness remains a key challenge for the GCC premium chocolate market.

Supply Chain Issues

Supply chain issues are a significant challenge for the GCC premium chocolate market, affecting both the availability and cost of products. The GCC region relies heavily on imports for key ingredients, particularly cocoa beans, which are sourced from regions like West Africa and Latin America. These long-distance supply chains can be vulnerable to disruptions, such as geopolitical instability, extreme weather conditions, or transportation delays, all of which can lead to supply shortages and increased costs. Also, fluctuating global cocoa prices and the dependence on international suppliers for raw materials contribute to price volatility, making it difficult for manufacturers to maintain consistent production costs. Also, the demand for ethically sourced cocoa and sustainable ingredients has added complexity to the supply chain. As consumer preference grows for fair-trade and certified organic products, it requires chocolate producers to source materials that meet these criteria, often at a higher cost and with more stringent supply chain tracking. Ensuring transparency and compliance with sustainability standards can be challenging, especially when sourcing from multiple countries with varying regulations. The regional supply chain infrastructure, though improving, is still not as efficient as in more established chocolate markets. Limited local production facilities for high-quality chocolate and raw materials, along with reliance on imports, adds to logistical challenges. These factors combined lead to higher costs, delays, and unpredictability in the GCC premium chocolate market.

Key Market Trends

Rising Popularity of Organic Premium Chocolate

The rising popularity of organic premium chocolate is a key driver of growth in the GCC premium chocolate market. As a part of this, according to a recent study, as of 2021, the projected retail market size for organic products in the United Arab Emirates was approximately 36 million U.S. dollars. The retail market size of organic products in the country was expected to keep growing, with projections indicating it would reach around 70 million U.S. dollars by 2025.As consumers in the region become more health-conscious and environmentally aware, there is a growing demand for organic and sustainably sourced food products, including chocolates. Organic premium chocolates, made from cocoa beans grown without the use of pesticides, synthetic fertilizers, or genetically modified organisms, align with the increasing consumer preference for natural and healthier options. This shift in consumer behavior is pushing chocolate producers to offer organic varieties to cater to this evolving market.In addition to health benefits, organic premium chocolates are perceived as more ethical, appealing to consumers who are concerned about fair trade and sustainable farming practices. Many GCC consumers are willing to pay a premium for products that are certified organic, as well as those that promote environmental sustainability and fair labor practices, which adds to the appeal of organic chocolates. The increasing availability of organic products, driven by both local and international brands entering the GCC market, has further boosted the popularity of organic premium chocolates. Retailers are expanding their offerings to meet demand, and e-commerce platforms are making it easier for consumers to access organic premium chocolates from a variety of brands. As awareness of organic food benefits grows, organic premium chocolate is expected to continue its upward trajectory in the GCC market, driving overall market expansion.

Surging E-Commerce Growth

Surging e-commerce growth is a significant trend driving the GCC premium chocolate market. As a part of this, according to a recent study, the eCommerce market is expected to generate revenue of USD 8.00bn by 2025.As online shopping continues to expand across the region, more consumers are turning to e-commerce platforms to purchase premium chocolates. This shift is being fuelled by the increasing use of smartphones, internet penetration, and the convenience of shopping from home. E-commerce provides consumers with easy access to a wide variety of premium chocolate brands and products that may not be readily available in local stores, especially in remote or less urbanized areas. Online platforms also allow consumers to explore niche and international chocolate brands that cater to specific preferences, such as organic, sugar-free, or ethically sourced chocolates. Also, e-commerce enables chocolate manufacturers and retailers to offer exclusive deals, bundles, and limited-edition products, creating a sense of urgency and exclusivity that appeals to consumers looking for unique chocolate experiences. Another advantage of e-commerce is the opportunity for premium chocolate brands to showcase their luxurious packaging and branding more effectively, enhancing the overall consumer experience. The convenience of home delivery and the ability to purchase chocolate as a gift for holidays, celebrations, or special occasions further drives demand. As a result, e-commerce is not only broadening the customer base but also contributing to a shift in how premium chocolates are marketed and consumed in the GCC region, offering greater accessibility and a more personalized shopping experience.

Growing Demand for Innovative Flavor & Ingredients

The growing demand for innovative flavors and ingredients is a key trend driving the GCC premium chocolate market. As consumer preferences evolve, there is a noticeable shift toward exploring new, unique, and exciting chocolate offerings. Consumers in the region are becoming more adventurous in their tastes, seeking premium chocolates that go beyond traditional flavors like milk and dark chocolate. This trend has prompted brands to experiment with a wide range of exotic flavors, such as saffron, date, rose, pistachio, and even regional spices, which resonate with local tastes and preferences. Also, the incorporation of unconventional ingredients such as superfoods (e.g., matcha, quinoa, and chia seeds), nuts, dried fruits, and herbs is gaining popularity. These innovative combinations not only appeal to health-conscious consumers but also attract those seeking a luxurious and novel chocolate experience. As more consumers prioritize unique, artisanal products, premium chocolate brands are capitalizing on this trend by offering limited-edition products, seasonal releases, and personalized creations.The growing demand for healthier and more functional ingredients is also fueling this trend. Brands are introducing chocolates with lower sugar content, high cocoa percentages, and added health benefits, such as antioxidants and probiotics. This shift toward innovation is allowing chocolate brands to differentiate themselves in an increasingly competitive market, while also catering to diverse tastes and dietary preferences, further expanding the GCC premium chocolate market.

Segmental Insights

Product Insights

The Milk Chocolate segment dominated the GCC Premium Chocolate Market due to its widespread popularity and appeal across various consumer demographics. Milk chocolate offers a smooth, creamy texture and a balanced sweetness, making it a favorite among both young and adult consumers. The segment benefits from a strong tradition of milk chocolate consumption in the region, driven by its indulgent and comforting taste profile. Also, milk chocolate products are often marketed in attractive packaging, enhancing their appeal as luxury gifts, particularly during festive seasons and special occasions. The versatility of milk chocolate, combined with its ability to pair well with a variety of ingredients such as nuts, fruits, and spices, further drives its dominance in the premium chocolate market. In addition, as premium milk chocolate incorporates higher-quality ingredients, such as single-origin cocoa and organic milk, it attracts a growing number of consumers seeking both luxury and quality. This trend, along with increasing availability through retail and e-commerce channels, reinforces the leading position of milk chocolate in the GCC premium chocolate market.

Download Free Sample Report

Country Insights

Saudi Arabia dominated the GCC Premium Chocolate Market, holding the largest market share due to its large population, strong purchasing power, and growing preference for luxury goods. As one of the wealthiest nations in the region, Saudi consumers have a high disposable income, which drives demand for premium chocolate products. The country's expanding retail infrastructure, including luxury malls and e-commerce platforms, has increased accessibility to premium chocolate brands. Also, Saudi Arabia's gifting culture, particularly during holidays and special occasions like Eid, has further fuelled the consumption of premium chocolates. The increasing trend of health-conscious consumers seeking high-quality, organic, and ethically sourced chocolates has also contributed to the growth of the premium segment in the country. With a young, cosmopolitan population and a rising interest in global food trends, Saudi Arabia remains a key player in the GCC premium chocolate market.

Recent Developments

• In November 2024, Careem collaborated with Ebraheem El Samadi, the star of Dubai Bling and founder of Forever Rose, to launch his eagerly awaited line of luxury chocolate bars exclusively on Careem Groceries beginning. These premium chocolate bars, crafted from pure Belgian chocolate and devoid of palm or vegetable oils, feature locally inspired flavors like Kunafa Pistachio, Lotus, and Peanut Butter. Due to Careem’s ultra-fast delivery service, customers in Dubai and Abu Dhabi can indulge in these luxury treats at any time of day from the comfort of their homes, with delivery in under 30 minutes via Careem Groceries.
• In December 2024, Robinson Confections, a specialty candy shop, launched the Dubai Chocolate Bar, which has quickly become a global viral sensation. Created by Fix Dessert Chocolatier in Dubai, the bar gained widespread attention on TikTok. The unique combination of toasted Kaitifi/Knafeh (shredded phyllo dough) adds a delightful crunch, while the flavor profile blends seamlessly with the creamy milk chocolate shell, complemented by the nutty richness of Tahini (sesame) and Pistachio paste.

Key Market Players

• Mondelēz International
• Nestlé Middle East FZE
• FerGulf Trading UAE L.L.C
• Godiva Chocolatier, Inc.
• Barry Callebaut
• Mars, Incorporated
• The Hershey Company
• Patchi
• Chocoladefabriken Lindt & Sprüngli AG
• Vocca LLC

Report Scope:

In this report, the GCC Premium Chocolate Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• GCC Premium Chocolate Market, By Product

o   White Chocolate

o   Milk Chocolate

o   Dark Chocolate

• GCC Premium Chocolate Market, By Category:

o   Organic

o   Regular

o   Gluten-Free

o   Sugar-Free

o   Others

• GCC Premium Chocolate Market, By Distribution Channel:

o   Supermarket/Hypermarket

o   Specialty Stores

o   Online

o   Others

• GCC Premium Chocolate Market, By Country:

o   Saudi Arabia

o   UAE

o   Qatar

o   Oman

o   Bahrain

o   Kuwait

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the GCC Premium Chocolate Market.

Available Customizations:

GCC Premium Chocolate Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

GCC Premium Chocolate Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]