Saudi Arabia Confectionery Market Segmented, By Product Type (Gum, Jellies, Caramel & Toffees, Mint, Others), By Nature (Organic, Regular), By Distribution Channel (Supermarket & Hypermarket, Convenience Stores, Specialty Stores, Online, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Saudi Arabia Confectionery market was valued at USD 1.74 Billion in 2024 and is expected to grow to USD 2.53 Billion by 2030 with a CAGR of 6.44%. The Saudi Arabia Confectionery market is experiencing steady growth driven by several key factors. One of the primary drivers is the country’s youthful and growing population, which has a strong preference for sweet treats, especially among children and young adults. Rising disposable incomes and increased urbanization have also contributed to higher consumer spending on indulgent food products, including chocolates, candies, and gums. Also, changing consumer lifestyles and a growing inclination toward premium, innovative, and conveniently packaged confectionery items have boosted demand. The influence of Western culture and increasing tourism has further expanded the variety and availability of international confectionery brands in the market. Also, aggressive marketing strategies and promotional activities by major players are enhancing brand visibility and consumer interest, further propelling market expansion.

Key Market Drivers

Urbanization & Modern Retail Growth

Urbanization and the expansion of modern retail infrastructure are pivotal drivers of Saudi Arabia's burgeoning confectionery market. As a part of this, according to a recent study, as of 2023, retail sales in Saudi Arabia were projected to reach USD 126.1 billion. With approximately 85% of the population residing in urban areas like Riyadh, Jeddah, and Dammam, there is a heightened demand for accessible and diverse confectionery products. The proliferation of supermarkets, hypermarkets, and convenience stores has enhanced product availability, catering to the fast-paced lifestyles of urban consumers. Also, the rise of e-commerce platforms has further facilitated consumer access to a wide array of confectionery items, offering the convenience of online shopping and home delivery . These developments, aligned with the Kingdom's Vision 2030 initiative to diversify the economy and modernize infrastructure, have significantly contributed to the growth and dynamism of the confectionery sector in Saudi Arabia.

Growth of Tourism & Expatriate Population

The growth of tourism and the expatriate population in Saudi Arabia significantly bolsters the country's confectionery market. According to UN Tourism's World Tourism Barometer, as of 2024, Saudi Arabia saw a 73% rise in foreign visitor arrivals and a 27% increase in foreign tourism income. As the Kingdom diversifies its economy under Vision 2030, it has become an increasingly attractive destination for international visitors and foreign workers. This influx of diverse populations introduces a wide range of taste preferences and cultural influences, driving demand for varied confectionery products. The presence of a multicultural consumer base encourages manufacturers to innovate and offer products that cater to both traditional Saudi tastes and international palates. Also, the expansion of the hospitality sector, including hotels, restaurants, and cafes, creates additional channels for confectionery sales, particularly premium and artisanal offerings. Seasonal tourism peaks, such as during religious pilgrimages, further amplify demand for confectionery items, especially those suitable for gifting. Consequently, the combined effect of a growing tourist influx and a substantial expatriate community contributes to a dynamic and expanding confectionery market in Saudi Arabia.

Cultural Celebrations and Gifting

Cultural celebrations and gifting traditions are significant drivers of the confectionery market in Saudi Arabia. Festivals such as Ramadan, Eid al-Fitr, and Eid al-Adha witness a substantial surge in demand for sweets, as gifting confectionery is deeply embedded in Saudi culture. Premium chocolates, traditional treats like maamoul and baklava, and artisanal sweets are especially popular during these periods. The trend of gifting high-end confectionery items during festive occasions has led to increased sales, with boxed assortments and luxury chocolates being favored choices. Also, the influx of pilgrims during Hajj and Ramadan contributes to seasonal spikes in demand, as visitors often purchase sweets as gifts. The emphasis on gifting during cultural celebrations not only boosts domestic sales but also encourages international brands to tailor their offerings to local tastes and traditions, further propelling the growth of the confectionery market in the Kingdom.

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Key Market Challenges

Regulatory Compliance

Regulatory compliance presents a significant challenge in the Saudi Arabia confectionery market, particularly as the government enforces increasingly strict food safety and labeling regulations. The Saudi Food and Drug Authority (SFDA) mandates rigorous standards for ingredients, nutritional labeling, shelf-life declarations, and halal certification, all of which must be met to ensure market entry and avoid penalties. For local and international manufacturers alike, staying compliant often requires constant updates to packaging, ingredient sourcing, and documentation, which can strain operational and financial resources. Smaller producers may find it difficult to keep pace with frequent regulatory changes and the associated costs of compliance. Also, import regulations can be complex, requiring clear documentation and adherence to customs protocols, which may delay product launches or distribution. These regulatory requirements, though essential for consumer protection and public health, create barriers to entry and increase the cost and complexity of doing business in the Saudi confectionery sector, especially for new or niche brands.

Supply Chain Disruptions

Supply chain disruptions pose a considerable challenge to the confectionery market in Saudi Arabia, particularly due to the country's heavy reliance on imported raw materials such as cocoa, sugar, dairy, and packaging components. Global supply chain instability—driven by geopolitical tensions, rising freight costs, and port delays—can lead to inconsistent availability and increased input costs for manufacturers. These disruptions often result in delayed production schedules, reduced product variety, and higher retail prices, which may impact consumer demand. Also, the perishability and temperature sensitivity of many confectionery products make timely and efficient logistics critical. Any delays or inefficiencies in cold chain transportation, especially during the extreme summer heat, can compromise product quality and increase spoilage risks. The COVID-19 pandemic highlighted the sector's vulnerability to global shocks, reinforcing the need for resilient and diversified sourcing strategies. Manufacturers are increasingly seeking to localize parts of their supply chain, but high initial investment costs and limited local alternatives remain key obstacles.

Key Market Trends

Increased Focus on Sustainable Packaging

The Saudi Arabia confectionery market is increasingly focusing on sustainable packaging as both consumers and regulatory bodies push for environmentally responsible practices. As a part of this, according to a recent study, nature-based environmental claims rate well, with 70% considering that a package being made from plant-based material is relevant to them. As environmental awareness rises, consumers are becoming more selective about the products they purchase, preferring those with eco-friendly packaging. This shift has led confectionery companies to adopt packaging solutions that are recyclable, biodegradable, or made from renewable resources. The Saudi government is actively encouraging sustainability through policies aimed at reducing carbon emissions and promoting circular economies, which further incentivize businesses to move toward greener packaging options. Also, the packaging industry is witnessing a transition from plastic-based materials to paper, cardboard, and plant-based alternatives. Innovations in biodegradable and edible packaging, such as materials made from seaweed or starch, are gaining traction as sustainable options. This trend not only aligns with global sustainability goals but also offers brands the opportunity to stand out in a competitive market by appealing to eco-conscious consumers.

E-commerce Expansion

The expansion of e-commerce is significantly influencing the Saudi Arabian confectionery market. As a part of this, according to the International Trade Administration, as of 2024, the number of Saudi internet users for e-commerce (selling and buying) is expected to reach 33.6 million, an increase of 42 percent from 2019.With a tech-savvy and young population, online shopping has become increasingly popular, especially among consumers aged 18 to 24. The convenience of online platforms allows consumers to explore a wide variety of confectionery products, compare prices, and have items delivered directly to their homes. This shift is also supported by the government's initiatives to promote digital infrastructure and cashless transactions, aiming for 70% cashless payments by 2025. As a result, traditional brick-and-mortar stores are complementing their physical presence with robust online platforms to cater to the growing demand for digital shopping experiences. This trend not only enhances consumer convenience but also opens new avenues for confectionery brands to reach a broader audience, including those in remote areas, thereby accelerating market growth and competition.

Rise Demand for Natural & Organic Products

The Saudi Arabia confectionery market is experiencing a notable shift towards natural and organic products, driven by increasing health consciousness among consumers. This trend reflects a broader global movement towards healthier eating habits, with consumers seeking alternatives to traditional sweets. Products featuring organic ingredients and natural sweeteners are gaining popularity, aligning with the wellness movement and the country's emphasis on health. Confectionery companies are responding to this demand by expanding their organic product lines to remain competitive in a health-focused market. This shift towards healthier confectionery options is expected to drive market growth, as more brands and products cater to this growing demand.

Segmental Insights

Distribution Channel Insights

Supermarket & Hypermarket dominated the Saudi Arabia Confectionery market, attributed to their extensive product offerings, strategic locations, and the convenience they provide to consumers seeking a one-stop shopping experience. Major retail chains such as Lulu, Panda, Carrefour, and Al Jazira have established a robust presence across the Kingdom, facilitating easy access to a wide range of confectionery products. These outlets often enhance the shopping experience with promotions, discounts, and seasonal displays, particularly during peak demand periods like Ramadan and Eid. The ability to compare various brands and products in-store further drives consumer preference for these retail formats. While online retail is on the rise, traditional supermarkets and hypermarkets remain the primary channels for confectionery purchases in Saudi Arabia.

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Regional Insights

Western dominated the Saudi Arabia Confectionery market, due to their established global presence, strong brand recognition, and innovative product offerings. International brands like Mars, Nestlé, and Hershey's have successfully tailored their products to cater to local tastes while maintaining the quality and reliability associated with Western products. Their wide distribution networks, strategic partnerships with major retailers, and extensive advertising campaigns have enabled them to build a loyal consumer base. Also, Western brands have capitalized on the rising demand for premium and indulgent products, appealing to middle and upper-income consumers. Also, the Northern & Central region's is driven by a significant portion of the country’s confectionery market due to its economic and demographic factors. Riyadh, as the capital and largest city, is a hub for business, retail, and cultural activities, with a high concentration of affluent consumers. This urban center also boasts a large, youthful population with increasing disposable incomes and exposure to international food trends.

Recent Developments

• In October 2024, Spanish tech firm Macco Robotics, a frontrunner in robotic technology solutions, has formed a strategic alliance with ABEET, Saudi Arabia’s pioneering chocolate manufacturer, under the Grow Food & Beverage Accelerator program.
• In October 2024, Al Nassr has announced an exciting new partnership with Snickers, one of the world’s leading chocolate brands, naming Snickers as the Official Chocolate Partner for the 2024/25 season. As part of the agreement, Snickers’ logo will be prominently displayed on the sleeve of Al Nassr's training kits, underscoring 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

Report Scope:

In this report, the Saudi Arabia Confectionery Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•   Saudi Arabia Confectionery Market, By Product Type:

o   Gum

o   Jellies

o   Caramel & Toffees

o   Mint

o   Others

• Saudi Arabia Confectionery Market, By Nature:

o   Organic

o   Regular

• Saudi Arabia Confectionery Market, By Distribution Channel:

o   Supermarket & Hypermarket

o   Convenience Stores

o   Specialty Stores

o   Online

o   Others

• Saudi Arabia Confectionery 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 Confectionery Market.

Available Customizations:

Saudi Arabia Confectionery 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).

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