Middle East Chocolate Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Segment Analysis

By Product Type: Dark Chocolate Gains Health Halo

Milk and white chocolate collectively held a significant 70.23% of the market share in 2024. This dominance is primarily driven by their popularity in family consumption and gifting traditions, where the preference for sweetness and familiarity plays a crucial role. These product types are widely favored for their universal appeal and are often chosen for celebratory occasions, making them a staple in many households. Their established presence in the market reflects a strong connection with consumer preferences for indulgent and comforting flavors.

On the other hand, dark chocolate is experiencing notable growth, with a compound annual growth rate (CAGR) of 6.93% projected for the period 2025-2030, making it the fastest-growing product type. This growth is fueled by increasing demand from affluent consumers in countries such as the United Arab Emirates, Saudi Arabia, and Qatar. These consumers are drawn to dark chocolate for its perceived health benefits, including higher cocoa content, which is associated with antioxidants, essential minerals, and a lower sugar profile. Meanwhile, white chocolate continues to cater to a niche audience, appealing to younger demographics and those seeking novelty. However, its lack of cocoa solids limits its ability to capitalize on health-related claims, which restricts its broader market potential.

Note: Segment shares of all individual segments available upon report purchase

By Form: Pralines and Truffles Capture Gifting Premiums

Tablets and bars accounted for 39.49% of form-based sales in 2024, primarily due to their convenience, ease of portion control, and suitability for impulse purchases in retail environments such as supermarkets and convenience stores. These forms are particularly favored by consumers seeking quick and accessible options. On the other hand, pralines and truffles are experiencing significant growth, with a compound annual growth rate (CAGR) of 7.01% projected for the period 2025-2030. This rapid expansion is largely driven by their popularity as premium gifting options during festive occasions like Ramadan and Eid. During these celebrations, the emphasis on premium packaging and artisanal presentation enables brands to command higher price points, appealing to both corporate and personal gifting markets.

Bateel, a prominent luxury brand, offers gift sets priced between AED 75 and AED 1,185 (USD 20 to USD 323), positioning pralines and date chocolates as high-end offerings. These products cater to discerning customers who value quality and exclusivity. Similarly, Patchi, which operates approximately 62 branches in Saudi Arabia, has built its reputation around premium pralines and seasonal collections. The brand's dedication to quality and innovation earned it recognition as one of Forbes' top luxury brands in the Middle East in 2005. Meanwhile, molded blocks and other forms serve niche purposes, such as baking, industrial applications, or novelty shapes. However, these forms typically lack the profit margins associated with pralines, making them less lucrative for manufacturers focusing on premium offerings.

By Price Form: Premium Segment Outpaces Mass Market

In 2024, mass-market chocolate accounted for 67.85% of the market share, underscoring the price sensitivity of middle-income consumers and the widespread availability of global chocolate brands in supermarkets and hypermarkets. This segment's dominance reflects the affordability and accessibility that appeal to a broad consumer base. On the other hand, premium chocolate is anticipated to grow at a compound annual growth rate (CAGR) of 7.13% between 2025 and 2030, representing the fastest growth among price tiers. This trend is fueled by increasing urbanization and higher disposable incomes in key markets such as Saudi Arabia and the United Arab Emirates, which are encouraging consumers to upgrade to higher-quality and more luxurious chocolate options.

The growing popularity of unique chocolate offerings in Dubai, such as pistachio-knafeh bars, demonstrates consumers' willingness to pay three to four times the price of standard chocolate for products that provide novelty and appeal, particularly on social media. Premium chocolate brands are capitalizing on the Middle East's strong gifting culture, where factors like sophisticated presentation and brand prestige are as important as taste. For instance, Ferrero has positioned Ferrero Rocher as a favored boxed chocolate during Ramadan, aligning with cultural preferences. Similarly, Patchi emphasizes luxury packaging and seasonal collections to meet the demand for premium gifting options in the region.

By Ingredient Type: Single-Origin Chocolate Emerges as Niche Growth Driver

Dairy-based chocolate accounted for 53.02% of the market share in 2024, primarily due to the popularity of milk chocolate in family consumption and gifting occasions. This category continues to dominate as it appeals to a broad consumer base with its familiar taste and versatility. On the other hand, single-origin chocolate, which is made using cocoa beans sourced from a single region, is projected to grow at a compound annual growth rate (CAGR) of 7.02% from 2025 to 2030. This represents the fastest growth among ingredient types, driven by affluent consumers who value the unique characteristics of origin-specific cocoa, including provenance, traceability, and distinctive flavor profiles. For example, Mirzam Chocolate Makers has introduced single-origin collections sourced from regions like India and Tanzania, earning five Academy of Chocolate Awards in 2025 for their commitment to quality and innovation.

Producing single-origin chocolate requires establishing direct relationships with cocoa cooperatives and managing extended lead times, which creates significant entry barriers. These challenges favor established players such as Barry Callebaut and Lindt over smaller regional startups. Barry Callebaut, a leading global chocolate manufacturer, sources 75% of its cocoa from West Africa and operates production facilities in Egypt and Morocco, leveraging its scale and infrastructure. However, the Middle East faces a scarcity of locally grown cocoa, preventing brands in the region from vertically integrating their supply chains. This leaves them exposed to fluctuations in global commodity prices. For instance, cocoa futures surged by 131% during 2023/24 due to the outbreak of the Swollen Shoot Virus in West Africa, delays in farmgate payments to farmers, and the enforcement of European Union (EU) deforestation regulations. These factors have significantly compressed profit margins for single-origin chocolate producers, highlighting the challenges of operating in this niche market.

By Distribution Channel: Online Retail Surges on Quick-Commerce Backbone

Supermarkets and hypermarkets accounted for 48.01% of distribution in 2024, benefiting from high customer foot traffic, strategically positioned impulse-purchase displays, and promotional campaigns tied to seasonal events. In contrast, online retail is projected to grow at a compound annual growth rate (CAGR) of 7.21% from 2025 to 2030, emerging as the fastest-growing distribution channel. This growth is fueled by quick-commerce platforms offering delivery within 15 to 30 minutes. For instance, DNOC Distribution partnered with noon in April 2025 to launch noon Minutes hubs, while YallaMarket secured USD 2.3 million in pre-seed funding to facilitate 15-minute deliveries in Dubai through the use of dark stores. However, the temperature sensitivity of chocolate necessitates cold-chain logistics, which increases costs that quick-commerce platforms must either absorb or transfer to consumers. Additionally, rising interest rates have further escalated cold-storage expenses, prompting operators to enhance delivery density and optimize route efficiency. Supported by nearly 100% internet and mobile phone penetration among the United Arab Emirates population, the Dubai Chamber of Commerce and Industry projects eCommerce to generate USD 8 billion in sales by 2025 ^{[3]Source: International Trade Association, "United arab emirates Country Commercial Guide," trade.gov}.

Brands that offer subscription boxes, corporate gifting portals, or limited-edition products can secure higher profit margins compared to those relying solely on third-party marketplaces. Mirzam's corporate gifting partnerships with organizations such as Etihad Airways, Burj Al Arab, and the Museum of the Future highlight how business-to-business (B2B) channels can effectively complement business-to-consumer (B2C) e-commerce strategies.

Geography Analysis

Chocolate Market in Saudi Arabia

Saudi Arabia emerged as the leading geographic segment in 2024, holding a significant 44.23% share of the market. This leadership is driven by factors such as high per-capita chocolate consumption, a population exceeding 36 million, and the Vision 2030 initiatives, which aim to boost local food manufacturing. A notable example of this trend is Nestlé's investment of USD 72 million in a factory located in Jeddah, which is expected to produce 15,000 tonnes annually starting in 2025. This move underscores how multinational corporations are localizing production to reduce dependency on imports and minimize exposure to tariff fluctuations. Additionally, AlBabtain Food announced plans for a chocolate factory investment in August 2024, further emphasizing the growth of local production. Patchi, a prominent chocolate brand, operates approximately 62 branches across Saudi Arabia, marking the highest concentration of outlets in any single market. Furthermore, Ferrero's Nutella has achieved the highest household penetration globally in Saudi Arabia, reflecting its strong alignment with family-oriented consumption habits.

The United Arab Emirates stands out as the fastest-growing geographic segment, with a projected compound annual growth rate of 6.88% between 2025 and 2030. This growth is fueled by a combination of factors, including increasing tourism inflows, a large expatriate population, and the popularity of the "Dubai chocolate" phenomenon, which has gained global recognition and inspired imitation worldwide. However, this trend has also brought to light certain quality concerns. German food inspectors reported that 96% of imported chocolate samples were defective, with issues such as undeclared allergens, the presence of mycotoxins, Salmonella contamination, and the substitution of palm oil for cocoa butter, raising questions about product safety and quality standards.

Other markets in the region, including Kuwait, Oman, Qatar, Bahrain, and the Rest of the Middle East, collectively represent smaller but strategically important segments. Qatar, known for its high-income levels and frequent hosting of international events, has seen a growing demand for premium chocolate products. Meanwhile, Oman imposes a total tax share of 36.51% on chocolate products, which influences pricing and consumption patterns. These markets, while smaller in size, play a critical role in the overall dynamics of the Middle Eastern chocolate market.