Increasing Demand from Commercial Sector Will Fuel the Saudi Arabia Bottled Water Market
Presence of desalinated
water, shifting trend to healthy, nutritious water among consumer and the
growing tourism industry in the country is driving the demand for bottled water
in Saudi Arabia.
According
to TechSci Research report, “Saudi
Arabia Bottled Water Market- By Region, Competition Forecast and
Opportunities, 2018-2028F”, The Saudi Arabia bottled water market is
anticipated to grow with a robust growth owing to growing awareness among
consumer about ill-effects of drinking of polluted water, presence of
desalinated water in country and the increasing demand from restaurant chains.
High disposable income,
expanding urbanization, and rising demand for sparkling water throughout the
course of the period all contribute to the market's growth. These elements
present growth prospects for national and international bottled water
producers, particularly to meet the rising demand from institutions like
hospitals.
Saudi Arabians have an
extremely high level of health consciousness as a result of recent pandemics
and other diseases that have grown common there. Saudi Arabia is a desert
nation that borders the Persian Gulf and the Red Sea. The country receives its
water from the sea and the ground, but as the groundwater in the area is
unusable and the sea water is saline, the market for bottled water is expanding.
Although desalinated, the country's tap water has an unpleasant flavor and
smell. Growing worries about water shortages and contaminated tap water is
expected to drive the bottled water market. People's desire for sparkling water
is rising as they replace carbonated beverages with them by adding different
flavours. Because of all these factors, Saudi Arabians favor bottled water over
tap water and water from other sources.
Sales of bottled water
soared as a result, especially through the home delivery channel. Moreover, it
is expected that government programs to promote personal hygiene will increase
demand for bottled water. The expanding tourism sector contributes
significantly to the rise of the Saudi Arabian bottled water market.
Additionally, the number of food service outlets in the nation, including
hotels and restaurants, are currently over 52,000 in the country. Therefore,
they also contribute a sizeable portion to the sales in the bottled water
industry in order to provide superior service to its guests.
As major producers include
drinking water that is rich in vitamins and minerals in their product portfolio,
market growth is anticipated to soar. The demand in the market is also expected
to increase due to worries about a variety of health issues brought on due to
consumption of contaminated water, including neurological disorders,
gastrointestinal diseases, and reproductive issues.
Furthermore, companies
offering bottled water claim that their products' seals prevent water from
bacterial contamination regardless of how long it is kept. While this is
happening, demand for bottled water is increasing as consumers change to safer,
more effective, nourishing, and refreshing drinks that are devoid of calories,
caffeine, or other artificial additives. The country's poor availability of
pure tap water is encouraging the use of bottled water. Consumer issues with
low quality/contaminated tap water are a contributing element to the growth of
the Saudi Arabian bottled water market. Owing to cleanliness and safety
concerns, customers are increasingly choosing bottled water over tap water,
which is driving the market.
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The Saudi Arabia bottled
water market is segmented into Baqala stores, convenience stores, supermarket
& hypermarkets, online channels, and others on the basis of distribution
channel. Supermarkets and hypermarkets are among the leading channels for the
sale of bottled water due to their expansive retail area that caters to a wide
range of preferences. The bottled water market is highly influenced by factors such
as corporate expansion and the increase in the number of supermarkets and
hypermarkets. For instance, the Lulu group has opened a hypermarket which is a 168,000 square feet store in the
eastern province of Saudi Arabia.
Major operating companies operating in
the Saudi Arabia Bottled Water Market are:
- Health Water Bottling Co. Ltd.
- Saudi Snack Foods Company Limited
(PepsiCo)
- Aloyoun Water Factory Co.Ltd
- Al Hada Water Co. Ltd.
- Pure Beverages Industry Co.
- Agthia Group PJSC
- Highland Spring Limited
- Nestle Saudi Arabia
L.L.C.
- Hana Food Industries Co.
- Tania Bottled Water Company ltd.
In Saudi Arabia, there is a
growing necessity for clean and safe water. Owing to the considerable
demand for drinking and bottled water, many of the companies are launching
new bottled water brands such as Ival, a premium bottled drinking water
manufactured domestically in Saudi Arabia from subterranean water wells, has
been launched by Pure Beverage Industry Company.
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“The absence of clean and
safe tap water, rising presence of desalinated water which leaves bad odor is
driving the demand for bottled water market. Additionally, the high demand from
the tourism industry which is growing at a fast rate after the lockdown ended
and the growing demand through online channels is contributing to the demand of
bottled water market in Saudi Arabia” said Mr. Karan Chechi, Research Director
with TechSci Research, a research-based global management consulting firm.
Saudi Arabia Bottled
Water Market By Product Type (Still Water, Sparkling Water), By Packaging Size
(Less than 1L, 1L-2L, More than 2L), By Packaging Type (Bottles, Barrels,
Glasses), By End User (Retail, Commercial), By Distribution Channel (Baqala
Stores, Convenience Stores, Supermarket & Hypermarkets, Online Channels,
Others (Distributors, Dealers) By Region, By Company, Forecast &
Opportunities, 2018-2028F,
has evaluated the
future growth potential of Saudi Arabia bottled water market and provides
statistics & information on market size, structure, and future market
growth. The report intends to provide cutting-edge market intelligence and help
decision makers take sound investment decisions. Besides, the report also
identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in the bottled water in Saudi Arabia.
Contact
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