With the growing number of calorie-conscious consumers and demand for premium gifting, this has impacted manufacturers, pushing key players to diversify with the emergence of innovative products that have less sugar, portion control packaging and a focus on ingredients. Governments have focused on sugar tax and subsidy removals, which has led to a turning point in this category in the region. As a result, manufacturers are expected to explore new trends.
The growing population as well as changing consumption habits with consumers demanding more indulgence with portion control has set manufacturers to identify means of satisfying this demand in the region.
With the increase in obesity and diabetes, governments have been pushing healthier snacking. In Morocco, a subsidy removal plan started in 2013 and the government announced in 2018 a partial removal of subsidies on granulated sugar. South Africa also launched sugar tax in April 2017.
Consumers are more knowledgeable about calorie intake, as well as what they want their children to consume in the region. 42% of respondents are actively restricting their sugar intake in the Middle East. As a result smaller pack types and emphasis on calories and ingredients on packaging has prevailed.
With growing demand for gifting, manufacturers have opted to enter the premium segment to increase value sales. This has encouraged manufacturers to introduce new flavours and fancier packaging.
As the region becomes more and more price sensitive, cheaper rivals have been taking share from leading players as consumers seek more sugar confectionery that is value for money with great quality flavour.
Despite traditional grocers leading, modern grocery retailers have the leverage to offer better promotions and wider product variety helping them grow.
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