Saudi Arabia Bottled Water Market Outlook to 2028

Saudi Arabia Bottled Water Market Overview

The Saudi Arabia Bottled Water Market was valued at USD 2.33 billion in 2023, driven by growing health consciousness, a hot climate, and a rising population. The market is segmented into still water, sparkling water, flavored water, and functional water, with still water being the most dominant due to its affordability and wide availability.

Major players in the Saudi Arabia Bottled Water Market include Almarai, Nestl Waters, Agthia Group, Hana Water, and Coca-Cola Bottlers. These companies lead the market with diverse product portfolios and a focus on hydration and premium water options. Almarai dominates the market with its popular Al Safi Danone brand, known for its purity and widespread distribution.

North and West Saudi Arabia are key markets, driven by high population densities in cities like Riyadh and Jeddah, as well as a strong preference for bottled water over tap water. The market is characterized by a mature consumer base with significant spending on health-focused beverages.

In 2023, Nestl Waters introduced a new line of eco-friendly bottled water in Saudi Arabia, aimed at environmentally conscious consumers. This launch reflects the growing demand for sustainable packaging and underlines the shift towards reducing plastic waste in the bottled water industry.

Saudi Arabia Bottled Water Market Segmentation

The Saudi Arabia Bottled Water Market can be segmented by product type, sales channel, and region:

By Product Type: The market is segmented into still water, sparkling water, flavored water, and functional water. Still water remains the most dominant product type in 2023, driven by its affordability and ease of access. Sparkling and flavored water are gaining popularity due to changing consumer preferences for healthier and more refreshing alternatives to soft drinks. Functional water, infused with vitamins and minerals, is also on the rise, appealing to health-conscious consumers.

By Sales Channel: The market is segmented by sales channel into supermarkets/hypermarkets, convenience stores, and online retailers. In 2023, supermarkets and hypermarkets dominate the market due to their wide product availability and accessibility. However, online retailers are rapidly increasing in market share, driven by the convenience of home delivery and the growing e-commerce sector. Convenience stores also hold a significant share, catering to on-the-go consumers.

By Region: The market is segmented regionally into North, West, East, and South regions. In 2023, North Saudi Arabia, particularly Riyadh, leads the market due to its large urban population and high disposable incomes. West Saudi Arabia, including Jeddah and Makkah, is another significant market, driven by tourism and religious pilgrimages. Eastern Saudi Arabia is also notable for its large expat population and rising demand for premium bottled water.

Saudi Arabia Bottled Water Market Competitive Landscape

Company

Establishment Year

Headquarters

Almarai

1977

Riyadh, Saudi Arabia

Nestl Waters

1992

Vevey, Switzerland

Agthia Group

2004

Abu Dhabi, UAE

Hana Water

1982

Riyadh, Saudi Arabia

Coca-Cola Bottlers

1886

Atlanta, USA

Almarai: In 2023, Almarai launched a new range of mineral-rich bottled water under its Al Safi Danone brand, designed to cater to consumers looking for hydration with added health benefits. This move aligns with the company's focus on expanding its premium product offerings in Saudi Arabia, where health-conscious consumption is on the rise.

Nestl Waters: In 2024, Nestl Waters expanded its Saudi operations by introducing a new line of eco-friendly packaging for its bottled water brands. The new packaging, made from recycled materials, reflects the company's commitment to reducing plastic waste and appeals to environmentally conscious consumers.

Market Growth Drivers:

Health Consciousness: The bottled water market in Saudi Arabia has seen significant growth, driven by an increasing focus on health and hydration. In 2023, the number of health-conscious consumers opting for bottled water over sugary beverages reached approximately 14 million, contributing to rising demand for bottled water products, particularly in urban areas.

Rising Population: Saudi Arabias growing population, estimated at over 35 million in 2023, has directly impacted the demand for bottled water. Urban centers such as Riyadh and Jeddah, with populations exceeding 8 million and 4 million respectively, are key drivers of the bottled water market due to their reliance on bottled water for safe drinking purposes.

Hot Climate: The arid climate of Saudi Arabia, with temperatures frequently exceeding 40 degrees Celsius during summer months, has created a constant need for hydration. Bottled water sales see significant spikes during the summer season, with daily consumption per capita in some regions reaching as high as 3 liters, particularly in major cities and tourist destinations.

Market Challenges
:

Water Resource Scarcity: Saudi Arabia relies heavily on desalination to meet its water needs, given the scarcity of natural freshwater resources. Desalination is an energy-intensive and costly process, which directly impacts the production costs for bottled water manufacturers. This reliance makes it difficult for companies to maintain profitability, especially in a competitive market.

Logistical Issues: Due to the vast desert landscape and widely dispersed population centers, transportation and distribution of bottled water present significant logistical challenges. Bottled water companies must invest in efficient supply chains to ensure timely delivery across all regions of the country, including remote areas.

Fluctuations in Input Costs: The bottled water industry is highly sensitive to fluctuations in global prices for raw materials such as plastic resins, energy, and transportation fuels. Unpredictable increases in the costs of these inputs make it difficult for companies to stabilize their pricing structures. Passing on these costs to consumers can be risky, as price-sensitive segments may switch to cheaper alternatives or reduce bottled water consumption altogether.

Government Initiatives:

Saudi Vision 2030: The Saudi governments National Water Strategy, with a budget of US 80billion, focuses on enhancing water security and sustainable water management across the country. This strategy includes investments in desalination plants and water distribution networks, ensuring that clean water is available across urban and rural areas. The strategy's long-term goal is to support sustainable bottled water production in line with water conservation measures

Water Quality Standards: The Saudi Food and Drug Authority (SFDA) has implemented stringent water quality standards to ensure the safety of bottled water products. This move encourages manufacturers to invest in advanced filtration and quality control technologies to meet the growing demand for safe drinking water.

Saudi Arabia Bottled Water Market Future Market Outlook

The Saudi Arabia Bottled Water Market is expected to experience steady growth, driven by the increasing focus on health and hydration, rising disposable incomes, and innovations in sustainable packaging.

Future Market Trends:

Sustainability Initiatives: With growing environmental concerns, the market is likely to see an increased focus on sustainable practices, including the use of recyclable and biodegradable packaging.

Expansion of Premium Water Products: As health-conscious consumers seek out more nutrient-rich hydration options, the demand for premium bottled water products, including functional and mineral-enriched water, is expected to rise.

Smart Packaging Solutions: The future of bottled water in Saudi Arabia may see the introduction of smart packaging, providing consumers with real-time information about water quality and consumption patterns.
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