What is the current size of the confectionery industry in the GCC region?
The GCC chocolate market alone was $ 1.3 billion in 2017 and is projected to grow at a CAGR of over 12% to reach $ 2.6 billion by 2023. The expected growth of the market is the age group of 5 to 24 years and the progress of urbanization throughout the GCC region. In addition, the region’s chocolate business is further encouraged by the growing tendency to give premium chocolates instead of dried fruits and traditional sweets.Increasing tourists and expatriates (increasing the influence of Western culture), increasing disposable income of the middle class population, and [certain types of] Chocolate is expected to further drive market growth until 2023.
However, the confectionery industry covers more than chocolate. Also includes sugar confectionery, gum and mint. Over the last decade, supermarkets in the region, especially those in the United Arab Emirates and Saudi Arabia, have upgraded their confectionery spaces and variety of products, especially from the United States and Europe. With more and more franchise confectionery concepts continuing to permeate the region, many local artisan brands are growing rapidly, and the confectionery industry is growing steadily.
Most international brands are here, but do you think the domestic market is also growing?
Yes, that’s right. The GCC-based community (including the media) has invested heavily in homemade brands and wants to support them as much as possible. Because they are homemade, they are usually market specific and always specialize in areas that work in our favor. In addition, as Western multinationals are curtailing their own expansion plans in emerging markets, domestic brands are increasingly demanding entry into developed markets such as the United States and Europe in search of economies of scale. I am.
How can retailers differentiate themselves in a supersaturated market?
In a market like GCC, which is constantly growing, changing and advancing, it is difficult to catch up and stand out from other markets. It’s important to provide a great customer journey, and it’s also important to have a strong, reliable and reliable brand. Credibility resonates and maintains power. It’s also important to create individual products, assets, and messages, and build a loyal customer base around them.
Looking at GCC, what do consumers expect from confectioners?
Evidence shows that this tendency to buy chocolate, confectionery, and dessert products online does not subside after the Covid-19 pandemic. Therefore, fast and efficient delivery is important in this market to meet customer needs in a hurry. When customers go to the store, they want to engage in an interactive experience – they enjoy visiting and want to make the most of the time they spend with their friends and family. Customers are also looking for trendy products and unique nostalgic items. This is also strongly influenced by the United States, Europe, and more recently Japan and South Korea.
Finally, what is the future of the industry? Where do you think you are heading?
Despite the pandemic and economic crisis, the confectionery industry continues to rise. It has been proven many times as an industry that maintains resilience. Sweets offer affordable comfort and luxury. It takes advantage of our youth and creates nostalgia for everyone who enjoys it. Wellness is rising, but there is always a place in the confectionery market. It also fulfills the desire (which we all know)-it doesn’t have to be considered unhealthy and can be very easily adapted to a healthy and balanced diet.
In addition, increased disposable income and steady growth of GCC are some of the key factors driving demand for a variety of sweets in the market. Westernized foods and higher acceptance of consumers’ daily lives will continue to create great opportunities for the confectionery industry. The online confectionery business will continue to grow along with physical stores.
https://gulfbusiness.com/where-is-the-gccs-confectionery-market-headed/ Where is the GCC confectionery market heading?