Saudi Arabia Chocolate Market Size, Trends, and Forecast Analysis (2025–2033)

Published by Renub Research

Market Overview

The Saudi Arabia chocolate market was valued at USD 1.32 billion in 2024 and is expected to reach USD 2.00 billion by 2033, growing at a CAGR of 4.75% during the forecast period. This robust growth is attributed to several key factors, including rising disposable incomes, increasing urbanization, gifting culture, and a growing young population with evolving consumption habits. Moreover, premiumization, health-conscious alternatives, and increased e-commerce penetration are reshaping the industry landscape.

Market Segmentation Analysis

By Type

• Dark Chocolate
• Milk/White Chocolate

Dark chocolate is gaining favor due to its perceived health benefits, while milk chocolate remains the dominant segment owing to widespread consumer appeal.

By Ingredient

• Cocoa Beans
• Cocoa Butter
• Sweeteners
• Chocolate Liquor
• Others

Cocoa beans are the cornerstone of production, with Saudi Arabia importing over 37 million kg in Q1 2023 alone.

By Distribution Channel

• Hypermarkets/Supermarkets
• Convenience Stores
• Online Retail Stores
• Others

Online retail is surging due to 99% internet penetration and the shift towards digital shopping experiences.

By Region

• Northern & Central Region
• Western Region
• Eastern & Southern Regions (emerging focus areas)

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Market Dynamics

✅ Growth Drivers

1. Evolving Consumer Behavior and Gifting Culture

Chocolates are no longer occasional treats but part of a growing gifting economy, especially during Ramadan, Eid, weddings, and other cultural occasions. Brands like Patchi, Godiva, and Bateel create limited-edition assortments to capture festive demand.

2. Premiumization and Customization

With increasing affluence, Saudi consumers are seeking personalized luxury chocolates, including:

• Handcrafted truffles
• Custom gift boxes
• Organic & vegan options

Luxury brands like Aani & Dani and Naeem Foods cater to this niche.

3. Health-Conscious Choices

Consumers are shifting towards functional chocolates with added health benefits:

• Dark chocolate (rich in antioxidants)
• Low-sugar and keto-friendly variants
• Plant-based offerings like Barry Callebaut’s NXT

4. Tourism & Religious Pilgrimage

Saudi Arabia hosts over 18.5 million pilgrims annually, boosting chocolate sales in cities like Mecca, Medina, and Jeddah. Chocolates are popular souvenirs, especially premium boxed selections.

5. Local Manufacturing & Export Potential

Saudi has 1,000+ chocolate factories, fulfilling 50% of local demand. Exports reached USD 62.5 million in 2023, with Riyadh leading production. The government’s Vision 2030 supports local food industries, positioning Saudi Arabia as a potential Gulf export hub.

❗ Market Challenges

1. Heavy Dependence on Cocoa Imports

The lack of domestic cocoa production leads to:

• Exposure to price volatility
• Import reliance from politically unstable cocoa-producing nations
• Higher manufacturing costs

2. Rising Health Awareness

There is growing scrutiny of:

• Sugar and fat content
• Processed ingredients
• Artificial additives

This challenges legacy brands to reformulate their products with cleaner labels and organic certifications, often requiring capital-intensive investments.

Regional Insights

? Northern & Central Saudi Arabia

Urban cities like Riyadh are witnessing strong demand for luxury and artisanal chocolates. Events like the Salon du Chocolat 2023 and the International Coffee & Chocolate Exhibition have boosted awareness and consumer engagement.

? Western Region (Jeddah, Mecca, Medina)

Religious tourism fuels strong seasonal demand. Pilgrims purchase chocolates as gifts, making it a key sales period for premium and imported brands.

?️ Eastern & Southern Regions

Still developing but show potential due to economic diversification, mall culture, and increasing youth population.

Trends Reshaping the Market

? 1. Digital Transformation

Retailers are adopting:

• Smart shelves
• Online ordering with same-day delivery
• AR-based chocolate selection experiences

E-commerce now constitutes a major growth channel, supported by high smartphone penetration and mobile wallets.

? 2. Rise of Plant-Based and Vegan Chocolates

Global players like Barry Callebaut are introducing dairy-free chocolate lines in response to veganism and lactose intolerance.

? 3. Gifting Personalization

Brands are focusing on:

• Laser engraving
• Name-tagged pralines
• Bespoke packaging

? 4. Global Expansion of Saudi Brands

For instance, Vlinder Chocolate expanded to South Korea in 2024 with its "Dubai-style" chocolate, marking the rise of Saudi brands abroad.

Competitive Landscape

Leading Companies

• Aani & Dani
• Artisan du Chocolat
• Bateel
• Al Nassama
• Bostani Chocolate
• Vlinder Chocolate
• Naeem Foods

These companies are leveraging product innovation, strategic gifting collaborations, and new product launches to secure a stronger foothold.

Key Developments

• Nestlé Investment: SAR 7 billion over 10 years; a new USD 99.6 million plant by 2025.
• Barry Callebaut: Launched NXT, a 100% plant-based chocolate range.
• Salon du Chocolat Riyadh 2023: First-ever event in Saudi for chocolate connoisseurs.

Forecast Highlights (2025–2033)

10 Key Strategic Questions

1. What are the most profitable product segments in the Saudi chocolate market?
2. How does chocolate consumption differ by age group and region?
3. What role does tourism play in seasonal chocolate sales?
4. How is health consciousness affecting product innovation?
5. Which international brands are entering or expanding in Saudi Arabia?
6. How are online retail and e-commerce changing the chocolate supply chain?
7. What regulatory and trade factors impact cocoa import costs?
8. How can local manufacturers reduce dependency on imported ingredients?
9. What is the market potential for plant-based and vegan chocolates?
10. What marketing strategies can drive growth in premium chocolate gifting?