Soft Drinks - United Arab Emirates

The Soft Drinks market in United Arab Emirates has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in the Soft Drinks market in United Arab Emirates have been shifting towards healthier options, with consumers becoming more conscious about their health and wellness. This has led to an increased demand for low-sugar and natural ingredient beverages. Additionally, there is a growing preference for functional drinks that offer specific health benefits, such as energy-boosting or immune-boosting properties. Consumers in United Arab Emirates also value convenience and are increasingly opting for ready-to-drink beverages that can be easily consumed on-the-go. Trends in the Soft Drinks market in United Arab Emirates are aligned with global and regional market trends. One of the key trends is the rise of premium and artisanal soft drinks. Consumers are willing to pay a premium for high-quality and unique beverages that offer a differentiated taste experience. Craft sodas, flavored sparkling water, and specialty teas are gaining popularity in the market. Another trend is the increasing popularity of plant-based and non-alcoholic alternatives. As more consumers adopt vegetarian or vegan lifestyles, there is a growing demand for soft drinks made from plant-based ingredients, such as coconut water or almond milk. Non-alcoholic alternatives to traditional alcoholic beverages, such as non-alcoholic beer or mocktails, are also gaining traction. Local special circumstances in United Arab Emirates have contributed to the development of the Soft Drinks market. The country has a large expatriate population from various countries, which has led to a diverse consumer base with different taste preferences. Soft drink manufacturers have capitalized on this by offering a wide range of flavors and varieties to cater to the diverse consumer demands. Additionally, United Arab Emirates has a hot climate, which has resulted in a high demand for refreshing and hydrating beverages. Soft drinks, especially carbonated beverages, are popular choices to quench thirst and provide a cooling effect. Underlying macroeconomic factors have also played a role in the growth of the Soft Drinks market in United Arab Emirates. The country has a strong and stable economy, which has led to an increase in disposable income and consumer spending power. This has allowed consumers to indulge in premium and higher-priced soft drinks. Furthermore, the tourism industry in United Arab Emirates is thriving, with millions of international tourists visiting the country each year. This has created a significant demand for soft drinks, both within the hotel and restaurant sector and among tourists who want to experience local flavors. In conclusion, the Soft Drinks market in United Arab Emirates is developing in response to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The market is witnessing a shift towards healthier options, premium and artisanal beverages, and plant-based alternatives. The diverse consumer base, hot climate, strong economy, and thriving tourism industry have all contributed to the growth of the market in United Arab Emirates.

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.