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Rising Demand for Cocoa Powder With Sugar in the Middle East: Opportunities for Exporters

Market Overview: Steady Growth and Strong Long-Term Potential

The Middle East market for cocoa powder containing added sugar is forecasted to grow steadily from 2024 to 2035. Market volume is projected to reach 147 thousand tons with a CAGR of 0.5 percent, while market value is expected to hit 622 million dollars with a CAGR of 1.3 percent. Although the consumption trend is moderate, the region remains highly dependent on imported cocoa powder, especially from countries outside the Middle East.

This growing structural demand creates both short and long-term opportunities for global cocoa powder exporters who are ready to supply consistent quality and volume.

Current Market Performance: A Region Driven by Food and Beverage Demand

In 2024, Middle East consumption reached 139 thousand tons valued at 539 million dollars. Turkey, Iran, and Saudi Arabia contributed the most, accounting for 63 percent of total consumption. The food and beverage sector, particularly chocolate drinks, confectionery, and ready-to-mix beverages, continues to drive overall market demand.

Production in the region stood at 135 thousand tons, still below consumption, showing that the Middle East continues to rely on imports to fill the supply gap.

Why the Middle East Remains a High-Potential Import Market

Despite fluctuations in trade and consumption since 2019, the Middle East remains a net importer of cocoa powder with sugar. The region’s dependence on imported cocoa ingredients is shaped by the following factors:

1. Limited regional cocoa bean supply

The Middle East does not produce cocoa beans, so local industries rely entirely on imports for processing.

2. Rapid growth of food manufacturing sectors

Countries such as Saudi Arabia, the UAE, Iraq, and Kuwait continue to expand their beverage and confectionery industries.

3. Increasing shift toward branded and premium products

Higher urban income encourages demand for better-quality cocoa-based products, including fortified and flavored cocoa mixes.

4. Strategic geographic re-export hubs

The UAE and Turkey often import cocoa-based products and re-distribute them to neighboring markets, amplifying import demand.

Import Trends: Saudi Arabia Leads, Iraq Emerges as the Fastest-Growing Market

In 2024, cocoa powder with sugar imports in the Middle East reached 5.9 thousand tons, declining from previous years but still indicating strong demand in key countries.

Top Importers (by Volume)

  • Saudi Arabia: 2.4K tons (40% share)
  • United Arab Emirates: 825 tons
  • Iraq: 821 tons
  • Kuwait: 695 tons
  • Lebanon: 385 tons
  • Qatar: 328 tons
  • Yemen: 150 tons

Import Growth Leaders (2013–2024 CAGR)

  • Iraq: +15.1% (fastest in the region)
  • Kuwait: +7.0%
  • Lebanon: +3.4%
  • UAE: stable, slight positive growth

Countries like Qatar and Yemen show declining imports, but the core demand remains strong in GCC nations and Iraq.

Import Value Insights

Saudi Arabia dominates in value terms with 12 million dollars or 44 percent of regional imports. It is followed by the UAE at 5.6 million dollars and Iraq at 11 percent of the market.

Notably, Saudi Arabia recorded positive growth in import value at 2.8 percent annually, indicating stable consumer demand for cocoa powder products despite fluctuations in volume.

Market Forecast: Stable Growth Through 2035

The demand for cocoa powder with sugar is expected to increase steadily. By 2035, the market is forecasted to reach:

  • 147 thousand tons in volume
  • 622 million dollars in value

Although growth is modest, it remains stable and driven by population expansion, urbanization, and continuous development in food and beverage manufacturing.

Opportunities for Exporters: Where the Market is Heading

The Middle East presents several strategic entry points for exporters of cocoa powder with sugar:

1. Supplying Saudi Arabia’s Strong Import Market

Saudi Arabia remains the largest importer and shows consistent growth in value. Its consumption base continues to expand due to its large population and growing beverage sector.

2. Capturing High-Growth Markets like Iraq and Kuwait

Iraq is the fastest-growing import market with double-digit growth. Kuwait also offers promising value-driven demand.

3. Leveraging the UAE as a Re-Export Hub

The UAE plays a central role in redistributing cocoa-based products across the Middle East and North Africa, making it a key entry gateway for exporters.

4. Supplying Food Manufacturing Industries

Demand from producers of:

  • instant chocolate drinks
  • ready-to-mix beverages
  • bakery and confectionery products continues to drive market expansion across GCC and Levant countries.

5. Long-Term Contracts with Regional Distributors

The Middle East market favors stable supply relationships, giving exporters who offer consistent quality and long-term contracts a strong competitive edge.

Conclusion: A Market Ready for New Suppliers

Despite short-term variations in import volume, the Middle East remains one of the most promising regions for cocoa powder with sugar exporters. Growing industrial demand, limited local production, and a rising urban consumer base drive continuous import needs through 2035.

For global suppliers, this market provides a significant opportunity to build long-term partnerships, particularly in Saudi Arabia, the UAE, Iraq, and Kuwait.