Fitch Solutions expects spending on sugar and chocolate products in the Middle East and North Africa region to increase by 2.6% in 2023 compared to 3.2% in 2022. The agency added that it is likely that spending on these products will slow down by the medium term, from 2022 to 2026, to an annual average of 1.9%.
According to the agency’s report, the MENA region will outperform in terms of household spending in 2023, adding that its growth rate is expected to reach 23% in the current year, and will be driven by countries such as Iran (30%), the UAE (15.4%) and Bahrain (11.5%).
Moreover, the agency expects the sugar and chocolate industries to grow in the medium term and North Africa at an annual average of 13%, while it will decrease in 2024 as a result of expected inflation and the introduction of value-added tax in Kuwait and Qatar, in addition to the basic economic effects of the years 2022 and 2023, which will fade as the growth rate restabilizes.