Country Profile: Hot Drinks Sector in Saudi Arabia
Hot Drinks Sector accounted for a volume share of 0.83% of the global market and 24.9% of the regional (Middle East & Africa) market in 2016. The sector was valued at SR10,211.5 million (US$2,723.1 million) in 2016 and is forecast to grow at a CAGR of 2.8% during 2016-2021.The sector is driven by a growing coffee culture in Saudi Arabia .Introduction of new flavors and blends, particularly in the Hot Tea market, and growing demand for healthier options in the Other Hot Drinks market, are also aiding the sector growth. Per capita consumption of Hot Drinks products stood at 2.9kg, which is higher when compared to both global and Middle East & Africa levels of 2.17kg and 1.9kg, respectively, in 2016.
Hot Coffee was the largest with value sales of SR5,062.6 million (US$1,350 million) in 2016. The market is also expected to grow the fastest at a CAGR of 3.15% during the forecast period (2016-2021), while Hot Tea and Other Hot Drinks are expected to record CAGRs of 2.28% and 3.13%, respectively.
Hypermarkets & Supermarkets account for a leading share in the distribution of Hot Drinks in Saudi Arabia. It accounted for 45.3% share in 2016, followed by Convenience Stores with a 28.8% share, while On-trade transactions held a 20.3% value share in the same year. Saudi Arabia’s GDP per capita declined at a CAGR of 3.5% during 2011-2016 and reached SR 72,886.7 in 2016. Moderate forecast GDP growth and good employment rate makes Saudi Arabia an attractive destination for consumer goods companies.
Flexible Packaging is the most commonly used package material in the Saudi Arabian Hot Drinks Sector. In 2016, it accounted for a volume share of 51.9%, followed by Paper & Board and Rigid Metal with shares of 27.8% and 10.6% respectively the consumption of Hot Drinks is high among the male population in Saudi Arabia. Moreover, consumption is particularly high among those consumers who received Tertiary education. In terms of consumption by age group, Kids & Babies and Older Young Adults together accounted for 48% share in 2016.
Lipton is the leading brand in the Saudi Arabian Hot Drinks Sector. It held a value share of 19.6% in 2016, while the top five brands in the sector accounted for a combined share of49%in the same year.
The report Country Profile:
Hot Drinks Sector in Saudi Arabia provides insights on high growth markets to target, trends in the usage of packaging materials, category level distribution channel data and market share of brands.
In particular, this report provides the following analysis -
Market data: Overall market value and volume data with growth analysis for 2011-2021. The overall market value and volume included in the report is split on the basis of On-trade and Off-trade
Category coverage: Value and growth analysis for Hot Coffee, Hot Tea and Other Hot drinks with inputs on individual category share within each market and the change in their market share forecast for 2016-2021
Leading players: Market share of brands and private labels, including private label growth analysis from 2011-2016
Distribution data: Percentage of sales within each market through distribution channels such as On-trade, Hypermarkets & Supermarkets, Convenience Stores, Food & Drinks Specialists, eRetailers and others
Packaging data: consumption breakdown for package materials and pack types in each market, in terms of percentage share of number of units sold. Package material data for Glass, Flexible Packaging, Paper & Board, Rigid Plastics, Rigid Metal and others; pack type data for: Carton, Bag/Sachet, Tub, Bottle, Jar and Stand Up Pouch
Companies mentioned in this report:
Luigi Lavazza,The Coffee House El-Farouki,Basamh Trading Company,Food Empire Holdings,Nestle,PT Mayora Indah,Power Root (M) S.B.,Al-Hamwi International Co. Ltd,Barnie`s Coffee & Tea Co,Café Najjar,Ahmed Mohamed Saleh Baeshan & Co KSA,Alwazah Tea,Associated British Foods Plc,Unilever,HINTZ Foodstuff Production GmbH,The Hershey Company
The Saudi Arabian Hot Drinks Sector accounted for a volume share of 24.9% of the regional (Middle East & Africa) market in 2016.
Of the three markets, Hot Coffee was the largest in value terms, while it is also expected to grow at the fastest CAGR, during 2016-2021.
Hypermarkets & Supermarkets account for a leading share in the distribution of Hot Drinks in Saudi Arabia.
Top five brands in the sector accounted for a combined share of 49% in 2016.
Flexible Packaging is the most commonly used package material in the Saudi Arabian Hot Drinks Sector.
Reasons to buy
Identify high potential categories and explore further market opportunities based on detailed value and volume analysis
Existing and new players can analyze key distribution channels to identify and evaluate trends and opportunities
Gain an understanding of the total competitive landscape based on detailed brand share analysis to plan effective market positioning
Access the key and most influential consumer trends driving Hot Drinks products consumption, and how they influence consumer behavior in the market which will help determine the best audiences to target
Our team of analysts have placed a significant emphasis on changes expected in the sector that will provide a clear picture of the opportunities that can be tapped over the next five years, resulting in revenue expansion
The packaging analysis report helps manufacturers, in identifying the most commonly used packaging materials in the sector
Analysis on key macro-economic indicators such as GDP per capita, population (overall and breakdown by age), and consumer price index. It also covers a comparative analysis of political, economic, socio-demographic, and technological indicators (PEST) across 50 countries.