Alcoholic Drinks in Saudi Arabia
Euromonitor International's Alcoholic Drinks in Saudi Arabia market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 38 | Publication date: Dec 2009
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Executive summary
Slower but strong total volume and current value growth in 2009
Total volume and current value sales grew at slower rates in 2009, compared to 2008 or the respective review period CAGRs. Industry sources believe that penetration is already high and the category overall is starting to approach maturity. The global financial downturn had no notable impact on demand, with non-alcoholic beer rising in popularity in Saudi Arabia. Unit prices did not show any notable increase in 2009 and most brands still retail at affordable prices.
Supplier activity maintains strong demand despite ongoing maturity
Alcoholic drinks in Saudi Arabia is comprised solely of non-alcoholic beer as Saudi Arabian regulations, which are based on Islamic Shariah Law, completely forbid the drinking, manufacturing and trading of any alcoholic drink type. This has created a very strong demand for non-alcoholic beer. Despite approaching maturity towards the end of the review period, suppliers were able to maintain strong growth in sales and demand through aggressive activities. These included intensive TV advertising for brands such as Barbican, Moussy Classic, Fayrouz and Holsten, flavour diversification (eg Holsten Pomegranate and Moussy Pomegranate), packaging innovation and new product developments (eg Hillsburg and Amstel Zero).
Barbican and Moussy Classic fight for leadership while new rivals grow
Non-alcoholic beer is a highly competitive environment. The category features the very strong presence of Barbican (Aujan Industries Co Ltd) and Moussy Classic (Feldschlössen Getränke AG). These two brands compete strongly in this category. On the other hand, new brands including Amstel Zero (Amstel Brouwerij BV) and Hillsburg (Mahmood Saeed Beverage Industry Co) continued to grow, outperforming leading brands with appreciable gains in total volume share in 2009.
Supermarkets/hypermarkets consolidates leadership
In line with the key distribution trends over the review period, supermarkets/hypermarkets continued to drive sales of non-alcoholic beer and gain shares at the expense of independent small grocers in 2009. Supermarkets/hypermarkets benefited from a rapid increase in the number of outlets, despite the economic slowdown, and from an ability to compete in terms of variety, pricing and promotions, especially for easy-to-carry 6-bottle multipacks. The strong growth of large modern retailers and other store-based formats such as convenience stores continued to prevent the development of non-store retailing. In 2009, sales through non-store retail formats remained negligible.
Growth is expected to slow as the industry approaches maturity
The forecast period is expected to see a continuation of the trend witnessed in 2009 with total volume and constant value sales growing strongly, but at slower rates than the respective review period CAGRs. Growth is expected to slow down as the category reaches maturity towards the end of the forecast period. Nevertheless, non-alcoholic beer will continue to offer strong growth opportunities and intense activities are projected by all suppliers.
Table of contents
ALCOHOLIC DRINKS IN SAUDI ARABIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Slower but strong total volume and current value growth in 2009
Supplier activity maintains strong demand despite ongoing maturity
Barbican and Moussy Classic fight for leadership while new rivals grow
Supermarkets/hypermarkets consolidates leadership
Growth is expected to slow as the industry approaches maturity
LEGISLATION
Table 1 Selling Margin of a Typical Non-Alcoholic Beer Brand 2009- Barbican
OPERATING ENVIRONMENT
MARKET DATA
Table 2 Sales of Alcoholic Drinks by Sector: Total Volume 2004-2009
Table 3 Sales of Alcoholic Drinks by Sector: Total Value 2004-2009
Table 4 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2004-2009
Table 5 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2004-2009
Table 6 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2009
Table 7 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2009
Table 8 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2009
Table 9 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2009
Table 10 Company Shares of Alcoholic Drinks by Global Brand Owner 2005-2009
Table 11 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2009
Table 12 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2009
Table 13 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2009-2014
Table 14 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2009-2014
Table 15 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2009-2014
Table 16 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2009-2014
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - SAUDI ARABIA
AL AHRAM BEVERAGES CO (ABC) - ALCOHOLIC DRINKS - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Al Ahram Beverages Co (ABC): Key Facts
Summary 3 Al Ahram Beverages Co (ABC): Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Table 17 Al Ahram Beverages Co (ABC): Competitive Position 2009
AUJAN INDUSTRIES CO LTD - ALCOHOLIC DRINKS - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Aujan Industries Co Ltd: Key Facts
Summary 5 Aujan Industries Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 6 Aujan Industries Co Ltd: Competitive Position 2009
BEER IN SAUDI ARABIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 18 Sales of Beer by Subsector: Total Volume 2004-2009
Table 19 Sales of Beer by Subsector: Total Value 2004-2009
Table 20 Sales of Beer by Subsector: % Total Volume Growth 2004-2009
Table 21 Sales of Beer by Subsector: % Total Value Growth 2004-2009
Table 22 Sales of Beer by On-trade vs Off-trade Split: Volume 2004-2009
Table 23 Sales of Beer by On-trade vs Off-trade Split: Value 2004-2009
Table 24 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2004-2009
Table 25 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2004-2009
Table 26 Company Shares of Beer by National Brand Owner 2005-2009
Table 27 Company Shares of Beer by Global Brand Owner 2005-2009
Table 28 Brand Shares of Beer 2006-2009
Table 29 Forecast Sales of Beer by Subsector: Total Volume 2009-2014
Table 30 Forecast Sales of Beer by Subsector: Total Value 2009-2014
Table 31 Forecast Sales of Beer by Subsector: % Total Volume Growth 2009-2014
Table 32 Forecast Sales of Beer by Subsector: % Total Value Growth 2009-2014