Saudi Arabia Bottled Water Market Assessment, By Type [Still Water, Sparkling Water, Functional Water, Others], By Packaging [PET Bottles, Glass Bottles, Biodegradable Packaging, Metal Cans, Others], By End-user [Individual, Commercial], By Distribution C

Saudi Arabia bottled water market is projected to witness a CAGR of 7.21% during the forecast period 2025-2032, growing from USD 2.44 billion in 2024 to USD 4.26 billion in 2032. High health consciousness amongst the population, a growing population, and increased urbanization have become the primary growth drivers of the bottled water market in Saudi Arabia. Bottled water has become a staple in the country because of the arid climate and limited freshwater resources. Besides, changing lifestyles, increased tourism, and a growing demand for premium and mineralized bottled water are other drivers for market growth.

Countries worldwide have an emerging trend towards healthier hydration, with many consumers shifting towards bottled water and away from sugary beverages. The rapid growth in the market is also aided by stringent regulations for water quality and safety, which boost the confidence of consumers. Advancements in technology related to purification and packaging, including 'green' and recyclable compositions for bottles, bring new variables into industry dynamics. For instance, in April 2024, Nova Water, a brand by Health Water Bottling Co. Ltd., became the first brand of water in Saudi Arabia to produce a water bottle using 100 percent recycled bottles along with a case that is made of 100 percent recycled material, aimed at protecting the environment and natural surroundings. These new eco-friendly bottles helped speed up the development of the Saudi circular economy while also playing a key role in reducing CO2 emissions.

Furthermore, the availability of bottled water is improved by the emergence of e-commerce and modern retail outlets, as the distribution gradually increases toward rural areas as well as even urban centers. Coupled with the strong government initiatives on sustainability and efficiency in terms of water resources, future developments in the industry will come from innovations in sourcing and water distribution to ensure long-term market sustainability.

Climate and Water Scarcity Fuels Market Growth

The growth of the bottled water market in Saudi Arabia is mainly attributed to the extremely arid climate and limited freshwater resources. Being under high temperatures for most of the year, the demand and need for safe and sound hydration is constant. Besides, the country's water supply depends largely on desalination and groundwater extraction. In fact, 388 wells in six regions of the Kingdom of Saudi Arabia indicate widespread contamination of groundwater, wherein 18.6% of wells exceed the permissible limit of total dissolved solids (TDS), 7.7% exceed the maximum allowable limit set for nitrates, and 21.4% of these wells show presence of fecal coliform. Therefore, the scarcity of water and the quality issues of the sources of water concern the residents and tourists, creating an increasing demand for bottled water. Bottled water plays a significant role in everyday life from the government's current sustainable water management outlook towards conservation schemes and desalination projects. With increasing instances of heat waves and prolonged dry-spelling conditions portraying the need for hydration more apparent than ever, the same remains a driver for growth. As consumers continue to seek reliable and safe drinking water sources, the industry continues to expand with innovative purification technologies and sustainable packaging solutions to keep up with environmental challenges and consumer preferences.

Rising Health Consciousness Helps in Market Expansion

A growing awareness of health and wellness is another key factor driving the bottled water market in Saudi Arabia. Consumers are becoming increasingly aware of the risks associated with sugary and carbonated beverages and are gradually shifting towards healthier hydration options. Bottled water, especially mineral and alkaline bottled water, is increasingly viewed as a healthier alternative due to its purity and perceived health benefits. Apart from that, poor tap water quality and rising safety concerns make people depend on bottled water even more for their daily consumption. Shape-conscious fitness culture, diet, and lifestyle choices have taken it even further. In May 2023, Makkah Water Company, a Saudi Arabia-based drinking water company, collaborated with Krones AG to update and expand its main plant capacity in Jeddah to capitalize on the opportunity. The company’s main plant developed seven lines in total from Krones AG, producing mineral water under the brand name ‘Safa’.

Moreover, government campaigns to promote a healthy lifestyle while regulations ensure the safety and quality of bottled water further led to a growth in the consumer base in the market. This has, therefore, led companies to innovations with the introduction of fortified and functional water products such as electrolyte enhancement or pH-balanced waters for particular health needs, further extending market diversification and sustaining its growth.

Supermarkets/Hypermarkets Hold the Dominant Market Share

Supermarkets and hypermarkets are the ones in charge of bottled water distribution in the Kingdom of Saudi Arabia. Their mass reach, product variety, and purchase in bulk advantages also contribute to their dominance. A convenient shopping experience is available with these large-scale retail outlets; thus, they are the preferred channels of purchase for bottled water. Many international players are entering the Saudi market to gain an advantage. For instance, in December 2024, the Chinese hypermarket chain ‘Wemart’ was launched in Saudi Arabia, stocked with a large range of Asian foods, other products, and grocery items.

Moreover, by stocking various premium and value-for-money brands, the big retail outlets satisfy a host of consumer preferences. Furthermore, frequent promotional offers, discounts, and loyalty programs encourage bulk buying and further enhance market dominance. Organized cold storage facilities enable efficient availability of chilled bottled water, assisting its appeal, especially during hot weather. Expansion of supermarkets and hypermarkets is still underway due to the establishment of modern retail infrastructures in both urban and suburban settings, catering to residential and business customers alike. Their strategic locations and high footfall put them at the top of the distribution channel.

Riyadh Dominates the Market

The supremacy of Riyadh characterizes the bottled water market in Saudi Arabia because of its high population density, commercial importance, and rapid urbanization. As the capital and the biggest city, Riyadh holds a rapidly increasing population laden with a huge proportion of expatriates, which drives an ever-steadier demand for bottled water. The city's climate, with extremely prolonged summer times and very high temperatures, promotes water consumption. Riyadh also acts as a commercial and administrative capital, with thousands of companies, hotels, and restaurants in the region depending on bottled water for their day-to-day functioning. Sophisticated retail infrastructure, including several hypermarkets, supermarkets, and convenience stores, makes bottled water convenient for various consumer segments. Added to that is the growing concern for health and wellness, leading to the majority of people from Riyadh prefer bottled water over sugary beverages. With continuous urbanization and growing disposable income, Riyadh remains the largest regional market, fortifying its position in the bottled water industry. In August 2023, Al-Jouf Mineral Water Bottling Co. initiated its trial production stage at its new Riyadh Second Industrial City plant to take up an operational capacity of 18,000 water bottle cartons per day. This is part of Al-Jouf Mineral's expansion plan to cut down the cost of transportation between its branches across the Kingdom.

Future Market Scenario (2025-2032F)

From an improved lifestyle perspective, consumers will continue to increasingly prefer bottled water in premium categories, with more mineral, alkaline, and electrolyte-enhanced varieties.

To be associated with Saudi Arabia's Vision 2030 and sustainability objectives, companies are expected to focus more on eco-friendly packaging, biodegradable bottles, and water conservation measures.

Innovative purification strategies, built-in smart packaging features, and improved water quality monitoring provide safer products against a backdrop of increasingly demanding consumer expectations.

Key Players Landscape and Outlook

A relatively competitive bottled water market is exhibited in Saudi Arabia, including some of the major international players and domestic brands. Major companies rule the market with wide distribution networks, recognition of their strong brands, and diverse commercial offerings extending from ordinary purified water up to premium mineral and alkaline water. Besides being cost-effective in production and government support, local manufacturers are also complemented by international brands utilizing their well-established reputations and high purification technology to attract health-conscious consumers.

In urban or suburban areas, the brands are able to reach the customer's homes through supermarkets, hypermarkets, and online sales platforms. Eco-friendly packaging, water conservation, and other sustainability programs have become the trend among industry players who want to align themselves with the sustainability objectives of Saudi Arabia Vision 2030. The future scenario of this industry is expected to be influenced by competition among the companies, increasing with demand for healthier hydration solutions among customers and technological advancements in filtration and packaging. Companies that continue their innovations in digital retail and brand differentiation will occupy greater positions within this changing environment.