Forecast Period
|
2026-2030
|
Market Size (2024)
|
USD 1.02
Billion
|
CAGR (2025-2030)
|
9.10%
|
Fastest Growing Segment
|
Online
|
Largest Market
|
Western
|
Market Size (2030)
|
USD 1.72 Billion
|
Market Overview
Saudi
Arabia Chocolate market was valued at USD 1.02 Billion in 2024 and is expected to grow to USD 1.72 Billion by 2030 with
a CAGR of 9.10%. The Saudi Arabia Chocolate market is
experiencing significant growth, driven by several key factors. Rising
disposable incomes, especially among the young and affluent population, have
led to an increased demand for premium and luxury chocolate products. Also, the
culture of gifting and social gatherings in Saudi Arabia plays a crucial role
in boosting chocolate consumption, particularly during festive seasons like
Ramadan and Eid. The growing presence of international chocolate brands,
alongside the expansion of modern retail outlets and e-commerce platforms, has
made a wide variety of chocolate products more accessible. Also, the increasing
popularity of health-conscious chocolate options, such as sugar-free and
organic varieties, caters to the evolving consumer preferences for healthier
indulgence. Together, these factors are contributing to the rapid expansion of
the chocolate market in Saudi Arabia.
Key Market Drivers
Rising
Disposable Incomes and Affluent Young Population
Rising disposable incomes and a
youthful, affluent population are pivotal drivers of the Saudi Arabian
chocolate market. As a part of this, according to a recent study, as of
2024, the average monthly disposable income across all households in the
Kingdom stood at USD 3157.03, while Saudi households specifically reported a
higher average of USD 4814.88. With over half of the population under 25
years old, urban millennials and Gen Z—approximately 23% of the populace—are
increasingly inclined towards premium and artisanal chocolates, favoring
quality and unique flavor profiles over mass-produced options. This
demographic's higher income levels and exposure to global trends fuel their
demand for luxury and exclusivity in confectionery choices. Consequently, the
market has witnessed a surge in handcrafted chocolates, with annual growth
rates reaching 10% in recent years. Also, the increasing willingness to pay a
premium for chocolates with transparent sourcing and positive social impact
initiatives further underscores the influence of this affluent, younger
consumer base on the market's evolution.
Expansion
Policies Adopted by Key Player
Key players in the Saudi Arabia chocolate market are
implementing strategic expansion policies to meet the growing demand for
premium and specialty chocolates. As a part of this, as of October 2024,
Spanish tech company Macco Robotics, a leader in robotic technology solutions,
has formed a strategic alliance with ABEET, the first Saudi chocolate
manufacturer, as part of the Grow Food & Beverage Accelerator program. These
strategies encompass investments in advanced manufacturing facilities,
introduction of innovative product lines, and enhancement of distribution
networks. By focusing on product innovation, such as introducing plant-based
and allergen-free chocolates, companies aim to cater to the evolving consumer
preferences for healthier and more inclusive options. Also, the expansion of
distribution channels, including both traditional retail outlets and online
platforms, ensures broader accessibility to their products. Through these
comprehensive expansion policies, key players are positioning themselves to
strengthen their presence in the competitive Saudi Arabian chocolate market and
capitalize on emerging consumer trends.
Expansion
Of Modern Retail Chains and E-Commerce Platforms
The expansion of modern retail chains and e-commerce
platforms is a significant driver of the Saudi Arabia chocolate market. As a
part of this, according to International Trade Administration, as of 2024, the
number of Saudi internet users engaged in e-commerce (both buying and selling)
is projected to reach 33.6 million, reflecting a 42% increase compared to 2019.As
the retail landscape evolves, large-scale supermarkets, hypermarkets, and
specialized gourmet stores have increasingly incorporated a wide range of
chocolate products, catering to the growing demand for premium and
international brands. This widespread availability makes it easier for
consumers to access various chocolate offerings, from mass-market options to
high-end, artisanal varieties. In parallel, e-commerce platforms are playing a
crucial role in reshaping consumer purchasing behavior. With the rise of online
shopping, consumers can now conveniently purchase chocolate products from the
comfort of their homes, benefiting from diverse selections and home delivery
services. The growth of digital platforms, supported by robust logistics and
secure payment systems, has made it easier for both local and global chocolate
brands to reach a wider audience across the Kingdom, further accelerating
market growth.

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Key Market Challenges
High
Import Dependence for Premium Chocolate Products
A key challenge in the Saudi Arabia chocolate market
is the high dependence on imports for premium chocolate products. While local
chocolate production has been growing, a significant portion of the demand for
high-end and specialty chocolates is still met through imports, particularly
from renowned international brands. This reliance on foreign suppliers exposes
the market to risks associated with global supply chain disruptions, such as
delays, higher shipping costs, and fluctuating currency exchange rates. Also,
the cost of importing premium chocolate ingredients, like high-quality cocoa
and exotic additives, can lead to higher prices for consumers, making these
products less accessible to a broader audience. As the demand for luxury and
artisanal chocolates continues to rise, the challenge remains for local
manufacturers to scale up production capabilities, improve sourcing practices,
and reduce their reliance on imports. Overcoming this challenge is critical for
enhancing the sustainability and competitiveness of the Saudi chocolate
industry.
Fluctuating
Prices of Raw Material
Fluctuating raw material prices, particularly for
cocoa, sugar, and other key ingredients, present a significant challenge to the
Saudi Arabia chocolate market. Cocoa, being the primary ingredient in chocolate
production, is highly sensitive to global market conditions, with prices often
influenced by weather patterns, crop yields, and geopolitical factors in major
cocoa-producing regions. These price fluctuations can lead to increased
production costs for chocolate manufacturers, which may result in higher prices
for consumers. In addition, the volatility of sugar and dairy prices further
compounds the issue, making it difficult for local producers to maintain
consistent pricing strategies. For premium chocolate brands that rely on
high-quality ingredients, these fluctuations can also impact the quality and
availability of their products. As a result, companies in the Saudi chocolate
market must find ways to manage cost pressures, optimize their supply chains,
and mitigate risks associated with raw material price instability to stay
competitive.
Key Market Trends
Demand
For Healthier Chocolate Option
The Saudi Arabia chocolate market is witnessing a
notable shift towards healthier options, driven by increasing health
consciousness among consumers. Dark chocolate, known for its higher cocoa
content and potential health benefits, is gaining popularity among health-conscious
individuals. Manufacturers are responding to this demand by offering a wider
range of dark chocolate options. Also, sugar-free and low-sugar chocolate
products have become more prevalent, catering to those looking to limit their
sugar intake. These products typically use sugar substitutes or alternative
sweeteners, such as stevia or erythritol, to provide a sweet taste without the
added sugar calories. Health-focused ingredients, like nuts, fruits, and
superfoods, are being incorporated into chocolates, providing a fusion of
indulgence and nutritional value. Chocolatiers are also experimenting with
ingredients like matcha, a green tea powder known for its antioxidant
properties. The demand for healthier chocolate options aligns with global
trends in mindful eating and is likely to continue influencing product
development in the Saudi chocolate industry. Manufacturers must navigate the
challenge of creating chocolates that are both indulgent and health-conscious,
offering options that appeal to a broader range of consumers.
Surging
Trend of Gifting Chocolate
The surging trend of gifting chocolate is a prominent
factor driving the growth of the Saudi Arabia chocolate market. Chocolate has
become a popular choice for gifts, especially during major celebrations,
religious holidays, and family gatherings. Events such as Eid, Ramadan, and
weddings have further amplified the demand for premium, artisanal, and luxury
chocolate products, as consumers increasingly opt for high-quality chocolates
as a gesture of appreciation or celebration. This trend is fueled by the
growing culture of gifting, where chocolates are often seen as a symbol of
goodwill, luxury, and indulgence. As a result, both local and international
chocolate brands are tailoring their offerings to cater to this market, with
customized packaging and seasonal gift sets. The rise in disposable income,
along with the increasing inclination towards premium gifting options, has made
chocolate a sought-after item for gift-giving, contributing to its growing
market share in Saudi Arabia.
Local
Production Expansion
The expansion of local chocolate production in Saudi
Arabia is a significant trend reshaping the market landscape. Historically, the
Kingdom relied heavily on imported chocolates to meet domestic demand. However,
recent developments indicate a shift towards bolstering local manufacturing
capabilities. This growth is driven by factors such as economic diversification
initiatives, increased consumer demand for premium and artisanal chocolates,
and a burgeoning middle class with a penchant for indulgent treats. Local
brands are increasingly incorporating regional flavors and ingredients,
aligning with cultural preferences and enhancing product appeal. While
challenges like the absence of domestic cocoa cultivation persist, the
government's support for food and beverage manufacturing is fostering
innovation and entrepreneurship in the sector. This strategic focus on local
production is expected to reduce import dependency and stimulate economic
growth within the Kingdom.
Segmental Insights
Distribution
Channel Insights
Supermarket/Hypermarket dominated the Saudi Arabia Chocolate
market, primarily due to their extensive product range, convenient
accessibility, and effective promotional strategies. These retail outlets offer
a wide variety of chocolate products, catering to diverse consumer preferences,
from mass-market options to premium and artisanal varieties. With locations
across urban and suburban areas, supermarkets and hypermarkets provide easy
access to chocolate, making it a go-to option for many shoppers. Also, these
stores frequently employ promotional activities, such as discounts, seasonal
offers, and loyalty programs, which further boost chocolate sales, especially
during peak shopping periods like Ramadan and Eid. The strategic placement of
chocolate products in high-traffic areas within these stores also encourages
impulse buying, solidifying the dominance of supermarkets and hypermarkets in
the Saudi chocolate market.

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Regional Insights
Western dominated the Saudi Arabia Chocolate market, driven
by their strong global presence, brand recognition, and premium quality
offerings. International chocolate brands, particularly from Europe and North
America, have established a solid foothold in the Kingdom due to their
reputation for high-quality products and innovative packaging. These brands
cater to the growing demand for premium and specialty chocolates, positioning
themselves as symbols of luxury and indulgence. Also, the Central region's is driven
by its strategic location, robust infrastructure, and economic significance,
making it a key hub for the chocolate market. Riyadh, the capital, serves as
the central commercial and cultural center, where high disposable incomes and a
growing population fuel demand for premium and specialty chocolate products.
The region's strong retail presence, with numerous supermarkets, hypermarkets,
and specialty stores, ensures widespread availability of chocolate brands, both
local and international. Also, the Central region benefits from a high
concentration of expatriates, further diversifying consumer preferences.
Recent Developments
- In June 2024, The
Esports World Cup Foundation announced that KitKat, Nestlé’s chocolate brand,
will be the main partner for the inaugural Esports World Cup in Riyadh, Saudi
Arabia. KitKat will have a booth at the event, and its branding is expected to
appear during broadcasts, on stage, and during breaks, aligning with the
brand’s "Give Me a Break" slogan.
- In October 2024, Al
Nassr has announced a new partnership with Snickers, one of the globe's most
iconic chocolate brands, designating Snickers as the Official Chocolate Partner
for the 2024/25 season. As part of the collaboration, Snickers' logo will be
prominently displayed on the sleeve of Al Nassr's training kits, symbolizing a
shared dedication to excellence both on and off the field.
Key Market Players
- Mars,
Incorporated
- Nestlé
Middle East FZE
- Bateel
International LLC
- The
Hershey Company
- Ferrero
International S.A.
- Meiji
Holdings Co., Ltd
- Mondelēz
International Inc.,
- Fujiya
Co., Ltd
- Lotte
Co., Ltd
- Barry
Callebaut
By Product Type
|
By Category
|
By Distribution
Channel
|
By Region
|
- White Chocolate
- Milk Chocolate
- Dark Chocolate
|
- Organic
- Regular
- Gluten-Free
- Sugar-Free
|
- Supermarket & Hypermarket
- Specialty Stores
- Online
- Others
|
- Eastern
- Western
- Northern & Central
- Southern
|
Report Scope:
In this report, the Saudi Arabia Chocolate Market has
been segmented into the following categories, in addition to the industry trends
which have also been detailed below:
- Saudi Arabia Chocolate Market, By Product Type:
o White Chocolate
o Milk Chocolate
o Dark Chocolate
- Saudi Arabia Chocolate
Market, By
Category:
o Organic
o Regular
o Gluten-Free
o Sugar-Free
- Saudi Arabia Chocolate
Market, By
Distribution Channel:
o Supermarket &
Hypermarket
o Specialty Stores
o Online
o Others
- Saudi Arabia Chocolate
Market, By Region:
o Eastern
o Western
o Northern & Central
o Southern
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the Saudi Arabia Chocolate Market.
Available Customizations:
Saudi Arabia 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).
Saudi Arabia 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]