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Bahrain Food and Drink Report Q1 2010Published by: Business Monitor International Published: Nov. 5, 2009 - 55 Pages Table of Contents
AbstractBahrain has slipped into third position behind the UAE and Qatar in BMI’s regional Food & DrinkBusiness Environment Ratings table for Q110. Despite a small population (no more than 1mn), even byregional standards, Bahrain’s business environment remains the Gulf region’s best, with its regulatoryenvironment scoring 8 out 10 from BMI. Although regional investors seeking explosive long-termvolume growth will continue to look to Saudi Arabia, Egypt and possibly Iran, our forecast that softdrinks value sales in Bahrain will increase 49.9% to BHD47.9mn (US$127.4mn) through to 2014 couldtempt Gulf producers aiming to diversify coverage of their higher value products.The same industry demand triggers apply in Bahrain as in the wider Gulf region. The country’s harshclimate and the absence of a notable alcoholic drinks industry gives the soft drinks industry a level ofdominance that is almost unique to the Middle East region. Although the structural development of theindustry does not favour the carbonates category (value growth is expected to be weaker than in thebottled water and fruit juice categories during our forecast period), volume and product developmentopportunities for the market-leading brands of PepsiCo and the improving Coca-Cola have not beencompletely extinguished, particularly when considering the growing market for zero-calorie carbonates. It is the bottled water and fruit juice categories that BMI believes will drive the wider industry over ourforecast period, as product development investment by the market leaders ties in to the evolution in thetastes and preferences of consumers. On the bottled water front, the rising popularity of bulk water islikely to play an increasingly important role in driving volume growth, while further productsegmentation by domestic and regional market leaders is likely to lead the fruit juice category. Not to becompletely outshined, functional drinks demand will continue to grow promisingly over the forecastperiod, in our view, on the back of increasing health consciousness. Although the Bahraini market arguably lacks the premiumisation potential of the UAE, Kuwait or Qatar,or the volume potential of Saudi Arabia (and Iran and Egypt too, if we look beyond the Gulf), the relativequality of Bahrain’s business environment and the soft drinks industry’s upbeat outlook should ensurethat it continues to pull in its fair share investment from existing players and regional firms looking toincrease their revenue catchment areas. Get Full Details About This Report >> |
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