Non-Alcoholic Drinks - Saudi Arabia

The Non-Alcoholic Drinks market in Saudi Arabia is experiencing significant growth and development.

Customer preferences: Saudi Arabian consumers have shown a growing preference for healthier beverage options, leading to an increased demand for non-alcoholic drinks. This shift in consumer preferences can be attributed to a growing awareness of the health benefits associated with consuming non-alcoholic beverages, such as fruit juices, flavored water, and herbal teas. Additionally, the younger generation in Saudi Arabia is increasingly health-conscious and actively seeks out non-alcoholic alternatives to traditional sugary drinks.

Trends in the market: One notable trend in the Non-Alcoholic Drinks market in Saudi Arabia is the rising popularity of functional beverages. Functional beverages are drinks that offer additional health benefits beyond basic hydration. These beverages often contain added vitamins, minerals, or other active ingredients that promote specific health benefits, such as improved digestion, increased energy, or enhanced immune function. The demand for functional beverages is driven by consumers who are seeking convenient ways to incorporate health-promoting ingredients into their daily routines. Another trend in the market is the growing popularity of ready-to-drink (RTD) beverages. RTD beverages are pre-packaged and require no additional preparation, making them convenient for on-the-go consumption. This trend is driven by the busy lifestyles of Saudi Arabian consumers, who are increasingly seeking convenient and time-saving options. RTD beverages include a wide range of products, such as bottled water, iced tea, and carbonated soft drinks.

Local special circumstances: Saudi Arabia has a hot climate, which contributes to the high demand for non-alcoholic beverages, particularly during the summer months. The hot weather encourages consumers to seek refreshing and hydrating drinks to quench their thirst and stay cool. This creates a favorable market environment for non-alcoholic beverage manufacturers and suppliers. Additionally, Saudi Arabia has a large Muslim population, and the consumption of alcohol is prohibited by Islamic law. As a result, the demand for non-alcoholic alternatives is high, and the Non-Alcoholic Drinks market has a captive audience.

Underlying macroeconomic factors: The growing Non-Alcoholic Drinks market in Saudi Arabia can also be attributed to the country's strong economic growth and increasing disposable income levels. As the economy continues to expand, consumers have more purchasing power to spend on discretionary items, including non-alcoholic beverages. This has created a favorable market environment for both domestic and international beverage companies looking to capitalize on the growing demand. Furthermore, the government of Saudi Arabia has been actively promoting healthy lifestyles and encouraging the consumption of non-alcoholic beverages through various initiatives and campaigns. These efforts have helped to raise awareness about the health benefits of non-alcoholic drinks and have contributed to the overall growth of the market. In conclusion, the Non-Alcoholic Drinks market in Saudi Arabia is experiencing significant growth and development due to changing customer preferences, including a growing demand for healthier options and the rising popularity of functional and ready-to-drink beverages. The local special circumstances, such as the hot climate and the prohibition of alcohol, further contribute to the market's growth. Additionally, underlying macroeconomic factors, such as strong economic growth and government initiatives, have created a favorable market environment for non-alcoholic beverage companies in Saudi Arabia.

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.