Presence of desalinated water, shifting trend to healthy, nutritious water among consumer and the growing tourism industry in the country is driving the demand for bottled water in Saudi Arabia.
According to TechSci Research report, “Saudi Arabia Bottled Water Market - By Region, Competition Forecast and Opportunities, 2018-2028F”, The Saudi Arabia bottled water market is anticipated to grow with a robust growth owing to growing awareness among consumer about ill-effects of drinking of polluted water, presence of desalinated water in country and the increasing demand from restaurant chains.
High disposable income, expanding urbanization, and rising demand for sparkling water throughout the course of the period all contribute to the market's growth. These elements present growth prospects for national and international bottled water producers, particularly to meet the rising demand from institutions like hospitals.
Saudi Arabians have an extremely high level of health consciousness as a result of recent pandemics and other diseases that have grown common there. Saudi Arabia is a desert nation that borders the Persian Gulf and the Red Sea. The country receives its water from the sea and the ground, but as the groundwater in the area is unusable and the sea water is saline, the market for bottled water is expanding. Although desalinated, the country's tap water has an unpleasant flavor and smell. Growing worries about water shortages and contaminated tap water is expected to drive the bottled water market. People's desire for sparkling water is rising as they replace carbonated beverages with them by adding different flavours. Because of all these factors, Saudi Arabians favor bottled water over tap water and water from other sources.
Sales of bottled water soared as a result, especially through the home delivery channel. Moreover, it is expected that government programs to promote personal hygiene will increase demand for bottled water. The expanding tourism sector contributes significantly to the rise of the Saudi Arabian bottled water market. Additionally, the number of food service outlets in the nation, including hotels and restaurants, are currently over 52,000 in the country. Therefore, they also contribute a sizeable portion to the sales in the bottled water industry in order to provide superior service to its guests.
As major producers include drinking water that is rich in vitamins and minerals in their product portfolio, market growth is anticipated to soar. The demand in the market is also expected to increase due to worries about a variety of health issues brought on due to consumption of contaminated water, including neurological disorders, gastrointestinal diseases, and reproductive issues.
Furthermore, companies offering bottled water claim that their products' seals prevent water from bacterial contamination regardless of how long it is kept. While this is happening, demand for bottled water is increasing as consumers change to safer, more effective, nourishing, and refreshing drinks that are devoid of calories, caffeine, or other artificial additives. The country's poor availability of pure tap water is encouraging the use of bottled water. Consumer issues with low quality/contaminated tap water are a contributing element to the growth of the Saudi Arabian bottled water market. Owing to cleanliness and safety concerns, customers are increasingly choosing bottled water over tap water, which is driving the market.
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The Saudi Arabia bottled water market is segmented into Baqala stores, convenience stores, supermarket & hypermarkets, online channels, and others on the basis of distribution channel. Supermarkets and hypermarkets are among the leading channels for the sale of bottled water due to their expansive retail area that caters to a wide range of preferences. The bottled water market is highly influenced by factors such as corporate expansion and the increase in the number of supermarkets and hypermarkets. For instance, the Lulu group has opened a hypermarket which is a 168,000 square feet store in the eastern province of Saudi Arabia.
Major operating companies operating in the Saudi Arabia Bottled Water Market are:
- Health Water Bottling Co. Ltd.
- Saudi Snack Foods Company Limited (PepsiCo)
- Aloyoun Water Factory Co.Ltd
- Al Hada Water Co. Ltd.
- Pure Beverages Industry Co.
- Agthia Group PJSC
- Highland Spring Limited
- Nestle Saudi Arabia L.L.C.
- Hana Food Industries Co.
- Tania Bottled Water Company ltd.
In Saudi Arabia, there is a growing necessity for clean and safe water. Owing to the considerable demand for drinking and bottled water, many of the companies are launching new bottled water brands such as Ival, a premium bottled drinking water manufactured domestically in Saudi Arabia from subterranean water wells, has been launched by Pure Beverage Industry Company.
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“The absence of clean and safe tap water, rising presence of desalinated water which leaves bad odor is driving the demand for bottled water market. Additionally, the high demand from the tourism industry which is growing at a fast rate after the lockdown ended and the growing demand through online channels is contributing to the demand of bottled water market in Saudi Arabia” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.
Saudi Arabia Bottled Water Market By Product Type (Still Water, Sparkling Water), By Packaging Size (Less than 1L, 1L-2L, More than 2L), By Packaging Type (Bottles, Barrels, Glasses), By End User (Retail, Commercial), By Distribution Channel (Baqala Stores, Convenience Stores, Supermarket & Hypermarkets, Online Channels, Others (Distributors, Dealers) By Region, By Company, Forecast & Opportunities, 2018-2028F, has evaluated the future growth potential of Saudi Arabia bottled water market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the bottled water in Saudi Arabia.
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