Confectionery Industry… Sustainable Profits

Talking about the bakery industry “sweets and chocolate” interests many, whether they are lovers of sweets or those who want to start a successful business, what makes this venture so attractive and profitable
Sweets and chocolate are no longer just a traditional dessert, but there is a great variety in types, flavors and shape. from classic cakes to cakes made from natural and gluten-free ingredients, from cakes decorated with intricate artistic shapes to specially designed to suit certain occasions, this great diversity makes it easy for everyone to find the type of cake they prefer, which increases the chances of success of this industry.
The world is witnessing a noticeable rise in demand for baked goods in general and sweets and chocolate in particular, sweets and chocolate have become an integral part of celebrations and various events, and they are also a way to express emotions and celebrate achievements.
The confectionery and chocolate industry enjoys a high profit compared to some other industries. the basic ingredients of sweets and chocolate are not expensive. profit can be increased by adding high-quality ingredients and providing additional services, such as: decorating and unique packaging. the demand for sweets and chocolate on special occasions such as weddings and birthdays makes it possible to set slightly high prices without affecting sales. in addition, the development in lifestyles and increased awareness of healthy nutrition prompted many to look for healthy alternatives to traditional sweets, which opened the door for confectionery and chocolate makers to develop new recipes that meet these growing desires.
The confectionery and chocolate industry is a key pillar in the local and international food industry, as it is witnessing a steady growth and increasing demand for it. according to the latest studies issued by the food and Agriculture Organization, the global demand for confectionery and chocolate products has increased by 12% in recent years, reflecting the attractiveness of this sector and its ability to generate rewarding economic returns. in addition, the diversity of tastes and the growing desires of consumers have opened wide horizons for entrepreneurs to develop innovative recipes that meet the needs of different segments of society, and investing in this field is a safe investment, as economic studies indicate that small enterprises The average confectionery and chocolate industry generates annual profits ranging from 8% to 15% in developing countries.
This expected growth is due to several factors, including the expansion of distribution channels, as the confectionery and chocolate market is witnessing an expansion of distribution channels, including e-commerce, which facilitates consumers to access a wide range of products, as well as the entry of new players into the market, which increases competition and encourages the development of new innovative products, and the emergence of emerging markets, so that it is witnessing a significant growth in the consumption of sweets and chocolate, driven by an increase in disposable income and changing consumption patterns.
A recent report issued by the grand “Grand View Research” Company indicates that the global confectionery and chocolate market is achieving remarkable growth, with an estimated volume of 65.68 billion dollars in 2023, and this growth is expected to continue at an accelerated pace over the next few years to reach a compound annual growth rate of 3.0% until 2030.
The Ministry of industry and Mineral Resources announced that the volume of investment in the confectionery and chocolate industry in the kingdom has reached 35 billion riyals (9.3 billion dollars), which was pumped into 1066 factories until mid-July 2021.
A report issued by the National Center for industrial and mining information indicated that investment in confectionery and chocolate factories accounts for 1.38% of the total investments in all Saudi factories, pointing out that foreign investments in the confectionery industry amounted to 3% of the total investments, while the percentage of Saudi investors in the sector reached 92%, while 5% was distributed among joint Capitals.
The date factory factories ranked first in terms of the quality of finished products, then the chocolate industry, and finally the cake factories, and in terms of activity, the gateau, petifour and cake factories were replaced first by 235 factories, then baklava, kunafa and maamoul factories with 430 factories, cocoa factories in the form of blocks or paste were replaced by a third with 134 factories, followed by sugar confectionery factories with 123 factories, while the number of white chocolate factories reached 73 factories.