Middle East Ice Cream Market Set for Growth, Led by High Consumption and Premium Innovations

The Middle East ice cream market is rapidly expanding, driven by high per capita consumption rates, particularly in Saudi Arabia and the UAE. In 2023, the market reached USD 80.61 billion and is forecasted to grow at a compound annual growth rate (CAGR) of 5.41% from 2024 to 2029, according to Euromonitor International. With over 1.5 billion liters (L) of ice cream consumed annually in the region, Saudi Arabia accounts for more than 500 million L of consumption annually. At the same time, the UAE follows closely with over 300 million L per year. This high consumption rate positions the Middle East as a leader in global ice cream consumption.

Figure 1: Ice Cream Market Revenue in the Middle East

Several key factors are driving the expansion of the Middle East ice cream market. The adoption of Western food trends and the rising demand for premium and exotic flavors are significant contributors. These preferences are expected to support the continued robust growth of the market, with a CAGR of over 5.41% from 2024 to 2029. Growing disposable incomes, tourism, and the region's increasing interest in novel ice cream products further fuel this market expansion.

Global ice cream brands have recognized the Middle East’s potential and are expanding their operations to capitalize on this demand. For instance, London-based Little Moons, an ice cream brand known for its mochi ice cream, has successfully entered the Middle Eastern market. While the brand was launched in 2010, it gained global attention in 2023 after a viral TikTok video catapulted it into the spotlight. The video, which featured people searching for Little Moons in UK supermarkets, generated over 500 million views, boosting the brand's global recognition.

Figure 2. Little Moon’s Mochi Ice Cream

Now available in 35 countries, including key markets like the UK, France, Germany, and Australia, Little Moons expanded into the Middle East in 2022. It has gained significant traction in the UAE, Saudi Arabia, Qatar, Bahrain, and Lebanon. The brand's mochi ice cream—a fusion of chewy rice flour dough wrapped around a ball of gelato ice cream or sorbet—has resonated well with the region's culturally diverse population, particularly in the UAE.

Little Moons' growth in the Middle East has been exceptional. According to Food Navigator Asia, the brand became the fastest-growing ice cream brand in the UAE in just one year and is now available at major retailers, including Carrefour, Lulu, Spinneys, and Choithrams. The company's retail sales value in the region over the past two years is projected to exceed USD 318.6 million, reflecting the growing demand for premium ice cream products.

With a substantial 1.5 billion L of ice cream consumed annually, the Middle East market holds significant growth opportunities for ice cream brands. Little Moons is positioning itself to capitalize on this demand, with the broader market projected to reach USD 4.84 billion by 2031. As consumers increasingly seek bite-sized indulgences and premium offerings, mochi ice cream is expected to continue its rise in popularity in the region and beyond. Additionally, the broader frozen desserts market across the Middle East and Africa was valued at USD 1.62 billion in 2022. This segment is also expected to grow, with a projected CAGR of 2.2% and a market size of USD 1.85 billion by 2028.

In conclusion, the Middle East ice cream market is sizable and set for sustained growth, supported by rising disposable incomes, increased tourism, and a growing appetite for innovative ice cream products. International brands like Little Moons are capitalizing on this demand by introducing unique, premium products that cater to the region's evolving consumer preferences.