Bottled Water - Saudi Arabia

The Bottled Water market in Saudi Arabia has been experiencing significant growth in recent years.

Customer preferences: Customers in Saudi Arabia have shown a strong preference for bottled water due to several factors. Firstly, the hot climate in the country makes it necessary for people to stay hydrated throughout the day, and bottled water provides a convenient and portable solution. Additionally, concerns about the quality of tap water have also contributed to the popularity of bottled water. Many consumers perceive bottled water to be safer and cleaner than tap water, leading them to choose it as their primary source of hydration.

Trends in the market: One of the key trends in the Saudi Arabian bottled water market is the increasing demand for premium and flavored bottled water. As consumers become more health-conscious, they are seeking out products that not only provide hydration but also offer additional benefits. This has led to the introduction of flavored bottled water options that cater to different taste preferences. Furthermore, premium bottled water brands have gained popularity among consumers who are willing to pay a higher price for perceived higher quality and better packaging. Another trend in the market is the growing popularity of eco-friendly packaging options. As consumers become more aware of the environmental impact of plastic waste, there has been a shift towards sustainable packaging solutions. This includes the use of biodegradable materials and the introduction of refillable water bottles. Many bottled water companies in Saudi Arabia have started to incorporate these eco-friendly practices into their operations to meet the changing preferences of consumers.

Local special circumstances: Saudi Arabia has a large expatriate population, which has also contributed to the growth of the bottled water market. Expatriates often prefer to consume bottled water due to concerns about the quality of tap water in the country. This has created a significant consumer base for bottled water companies, driving the demand for their products.

Underlying macroeconomic factors: The strong economic growth in Saudi Arabia has also played a role in the development of the bottled water market. As the country's economy continues to expand, there has been an increase in disposable income among consumers. This has made bottled water more affordable and accessible to a larger segment of the population, leading to higher consumption levels. In conclusion, the Bottled Water market in Saudi Arabia has been driven by customer preferences for a convenient and safe source of hydration, as well as the growing demand for premium and eco-friendly products. The local special circumstance of a large expatriate population has also contributed to the market's growth. Additionally, the strong economic growth in the country has made bottled water more affordable and accessible to a larger segment of the population.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.