Unfazed by the international slowdown, the region’s chocolate market is going from strength to strength — proving consumers will still spring for the little luxuries

In a region with a traditionally sweet tooth, it is unsurprising that the chocolate market is thriving.

According to chefs, chocolate has always been a popular component of Middle East outlet menus — and Kempinski Hotel Mall of the Emirates executive chef Winfried Helmetag adds that the market is “growing fast”.

“Even though there is crisis, there are still many chocolate companies trying to establish or expand their presence here,” he observes. “And tourism plays a major role in the chocolate industry, because most of the hotels require chocolate as part of their amenities.”

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Martin Chiffers, executive pastry chef at The Address Dubai Marina, notes that chocolate, sweets and desserts are inordinately popular across the Middle East. “This could also be due to historical reasons, as sweets have always been an integral part of the culinary delicacies on offer here,” he comments.

So with such a strong base in the region, has the chocolate industry suffered any ill-effects from the economic downturn?
Kempinski’s Helmetag says not. “Based on what I’ve observed, I don’t think it’s affected the confectionary market that much. There are still lots of people who love to eat sweets and chocolates.”

The Address’ Chiffers agrees: “Chocolate is still an ‘affordable luxury’, a treat which makes people feel good.”

Indeed, as JM Posner managing director Justin Posner explains, chocolate has long been viewed as a recession-proof market.

“Like most things, cocoa prices have risen over the past 18 months which has made the price of chocolate go to an all-time high — but chocolate is still in demand,” he points out.

But the global financial downturn was not without its repercussions for the cocoa products market.

EMF Emirates general manager Pierre Feghali admits: “Sales had slight decreases in areas that rely heavily on tourism.
“When certain countries’ tourism industry suffere, so did their hotels — hence the slowdown in sales to the hotels sector in some areas.”

Meanwhile Swiss International Chocolates managing director Daniel Hutmacher has noticed another repercussion of the sudden financial slowdown.

“Previously, lots of foreign brands were coming into the region, building themselves up, and [when the recession hit] they could not put a stop to their projects; hence the large supply of chocolate companies in what is today a much smaller market,” he asserts.

But there is still business to be had for those delivering top-notch products, Hutmacher emphasises.
“People are now focusing on quality, value for money, differentiation, service, technical support, smaller orders, and companies with knowledge of the market and the region,” he says.