Research Nester has released a report titled “Saudi Arabia Soft Drinks Market – Demand Analysis & Opportunity Outlook 2027” which delivers detailed overview of the Saudi Arabia soft drinks market.
Further, for the in-depth analysis, the report encompasses the industry growth drivers, restraints, supply and demand risk, market attractiveness, BPS analysis and Porter’s five force model.
The Saudi Arabia soft drinks market is anticipated to achieve a CAGR of 8.56% over the forecast period 2020-2027. Increasing need amongst the manufacturers to produce different types of beverages backed by the increasing popularity of healthier variants of soft drinks amongst the consumers including drinks such as kombucha and other types of functional teas, followed by the opportunities generated by the availability of various flexible packaging alternatives including bags or pouches and the growing social and economic transformation in Saudi Arabia are some of the factors believed to promote towards the growth of the Saudi Arabia soft drinks market.
The Saudi Arabia market is anticipated to reach USD 9984.8 million in the year 2027 from USD 4845.3 million in the year 2018 and further gain an incremental $ opportunity of USD 835.6 million in the year 2027 as compared to the previous year. The growth in the market of Saudi Arabia soft drinks can be attributed to the increasing number of quick service restaurants in the nation in tandem with the gradually changing dining-out culture.
Ban on Alcoholic Beverages in Saudi Arabia
In the statistical report Global Status Report on Alcohol and Health 2018 by the World Health Organization, during the period 1961-2016 in Saudi Arabia, alcohol consumption per capita aged 15+ recorded to almost zero. Moreover, in the year 2016, 0.2 litres of pure alcohol per capita (15+) consumption was recorded.
Prohibition on the consumption, import, brewing and sale of alcoholic drinks in Saudi Arabia backed by the conservative nature of the Islamic nation which promotes strict measures to follow Islamic laws, has provided a great opportunity for non-alcoholic beverage manufacturers to promote their products widely in the nation. In addition to this, manufacturers of non-alcoholic beverages also do not face competition unlike other countries, where there is a massive competition between alcoholic and non-alcoholic beverages. Moreover, the nation is also known to possess a hot and humid climate, thereby raising the need amongst individuals to constantly stay hydrated. Additionally, increasing concern for health amongst consumers on the back of rising chronic diseases has also led to the increasing demand for beverages which are low in calories and align with the active lifestyle of consumers thereby promoting good health. Furthermore, the increasing population in the nation, especially the young generation, is also anticipated to drive the growth of the Saudi Arabia soft drinks market.
However, concerns regarding the increase in excise taxes in the nation for sweetened beverages and the impact of the COVID-19 pandemic are some of the factors anticipated to limit the growth of the Saudi Arabia soft drinks market.
This report also provides the existing competitive scenario of some of the key players of the Saudi Arabia soft drinks market, which includes company profiling of The Coca-Cola Company (NYSE: KO) and PepsiCo, Inc. (NASDAQ: PEP). On the other hand, numerous local players are serving soft drinks in the highly fragmented market in different packaging forms to meet the customer demand. The profiling enfolds key information of the companies which encompasses business overview, products and services, key financials and recent news and developments. On the whole, the report depicts detailed overview of the Saudi Arabia soft drinks market that will help industry consultants, equipment manufacturers, existing players searching for expansion opportunities, new players searching possibilities and other stakeholders to align their market centric strategies according to the ongoing and expected trends in the future.