Sugar Confectionery in the Middle East and Africa

November 2019

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.

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This report comes in PPT.

Key Findings

MEA posts fastest growth for sugar confectionery globally offering room for innovation

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.

Sugar taxes and subsidy restrictions impact consumption habits and threatens manufacturer performance

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.

Growing calorie-conscious consumers have led to the growth of sugar free confectionery

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.

Toffees, caramels and nougat is the fastest growing category over historic period

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.

Manufacturers face competition from cheaper rivals

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.

Modern grocers benefit from competitive pricing

Despite traditional grocers leading, modern grocery retailers have the leverage to offer better promotions and wider product variety helping them grow.


Key findings
Middle East and Africa posts fasts regional growth
The category expects to see volatile growth compared to 2019
Premiumisation and gifting boosts toffees, caramel and nougat
Manufacturers combat decline with sugar free and packaging innovation
Sugar confectionery succeeds in South Africa, Saudi Arabia and Morocco
Product diversification and innovation drives value sales
Independent small grocers dominate, while supermarkets grow
Supermarkets grow as they offer wider product variety and promotions
Manufacturers capitalise on new product launches
Leading manufacturers face competition from cheaper rivals
Global giants widen their horizons
Deemah , Beacon and Manhattan maintain leadership
South Africa and Saudi Arabia lead value, while Nigeria leads growth
Sugar free confectionery and smaller packs to pave future growth
Habit persistence and population positively influence forecast growth
Microeconomic factors benefit lollipops
South Africa: market context
South Africa: competitive and retail landscape
Morocco: market context
Morocco: competitive and retail landscape
United Arab Emirates: market context
United Arab Emirates: competitive and retail landscape
Saudi Arabia: market context
Saudi Arabia: competitive and retail landscape
Egypt: market context
Egypt: competitive and retail landscape
Nigeria: market context
Nigeria: competitive and retail landscape
Algeria: market context
Algeria: competitive and retail landscape
Tunisia: market context
Tunisia: competitive and retail landscape

Packaged Food

In packaged food we consider two aspects of food sales: 1) Retail sales. 2) Foodservice. Retail sales is defined as sales through establishments primarily engaged in the sale of fresh, packaged and prepared foods for home preparation and consumption. This excludes hotels, restaurant, cafés, duty free sales and institutional sales (canteens, prisons/jails, hospitals, army, etc). Our retail definition EXCLUDES the purchase of food products from foodservice outlets for consumption off-premises, eg impulse confectionery bought from counters of cafés/bars. This falls under foodservice sales. For foodservice, we capture all sales to foodservice outlets, regardless of whether the products are eventually consumed on-premise or off-premise. Foodservice sales is defined as sales to consumer foodservice outlets that serve the general public in a non-captive environment. Outlets include cafés/bars, FSR (full-service restaurants), fast food, 100% home delivery/takeaway, self-service cafeterias and street stalls/kiosks. Sales to semicaptive foodservice outlets are also included. This describes outlets located in leisure, travel and retail environments. 1) Retail refers to units located in retail outlets such as department stores, shopping malls, shopping centres, super/hypermarkets etc. 2) Leisure refers to units located in leisure establishments such as museums, health clubs, cinemas, theatres, theme parks and sports stadiums. 3) Travel refers to units located in based in airports, rail stations, coach stations, motorway service stations offering gas facilities etc. Beyond the scope of the foodservice research are captive foodservice units that serve captive populations around institutions such as hospitals, schools, and prisons. This is also known as institutional sales.

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