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: 37 | Publication date: Feb 2009
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- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Beer; Cider/perry; RTDs/High-strength premixes; Spirits; Wine
Executive summary
Strong demand for non-alcoholic beer maintained in 2008
The alcoholic drinks market in Saudi Arabia comprises solely of non-alcoholic beer due to Saudi regulations based on Islamic Shariah law, which completely forbids the drinking, manufacturing and trading of any alcoholic drinks. Such regulations have created very strong demand for non-alcoholic beer in the absence of any alternatives, sales of which were worth hundreds of millions of Saudi riyals in 2008.
Despite the category’s approaching maturity, value and volume sales continued to increase rapidly in 2008, recording double-digit growth. This was mainly driven by aggressive advertising and promotional campaigns, supporting leading brands like Barbican, Moussy Classic, Holsten and Fayrouz. Other factors driving growth in 2008 were new product launches, such as Amstel Zero and Hillsburg, and successful product diversification in terms of flavours, such as Holsten Pomegranate.
Level of competition increases due to many new rivals and new launches
Non-alcoholic beer witnessed a high degree of competition over the review period, and was characterised by the strong presence of both domestic producers such as Aujan Industries Co Ltd and multinational companies such as Feldschlössen Getränke AG, Holsten-Brauerei AG and Al Ahram Beverages Co (owned by Heineken NV). Competition continued to increase, with many new brands entering this lucrative niche segment, both from local suppliers such as Mahmood Saeed Beverage Industry Co and foreign players like Dutch Export Breweries Co. New products were also an area of high dynamism in 2007/2008, and included key launches such as Amstel Zero and Holsten Pomegranate. Constant innovation, driven by fierce competition, fuelled sales growth.
Booming supermarket/hypermarket channel leads sales of non-alcoholic beer
Saudi Arabia continued to witness the modernisation of distribution channels, mainly benefiting from strong rivalry between international retailers, such as Carrefour and Géant, and the rapid expansion plans of leading local retailers such as Azizia Panda and Al Othaim. In 2008 supermarkets/hypermarkets continued to drive sales of non-alcoholic beer and gain at the expense of independent food stores, benefiting from the rapid increase in outlet numbers and the ability to compete in terms of variety, pricing and promotions. Sales of easy-to-carry multipacks of leading brands such as Moussy Classic and Barbican increased in particular.
Growth to slow over the forecast period
Growth in sales of non-alcoholic beer is expected to slow over the forecast period as the category starts to approach maturity following strong growth in per capita consumption throughout the review period. However, the category will continue to offer strong potential for growth. Flavour diversification and new launches of premium products such as Amstel Zero and Hillsburg, accompanied by a steady increase in advertising expenditure, will drive growth.
Table of contents
ALCOHOLIC DRINKS IN SAUDI ARABIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Strong demand for non-alcoholic beer maintained in 2008
Level of competition increases due to many new rivals and new launches
Booming supermarket/hypermarket channel leads sales of non-alcoholic beer
Growth to slow over the forecast period
MARKET BACKGROUND
Legislation
OPERATING ENVIRONMENT
MARKET DATA
Table 1 Sales of Alcoholic Drinks by Sector: Total Volume 2003-2008
Table 2 Sales of Alcoholic Drinks by Sector: Total Value 2003-2008
Table 3 Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2003-2008
Table 4 Sales of Alcoholic Drinks by Sector: % Total Value Growth 2003-2008
Table 5 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Volume 2008
Table 6 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: Value 2008
Table 7 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Volume 2008
Table 8 Sales of Alcoholic Drinks by Sector by On-trade vs Off-trade Split: % Value 2008
Table 9 Company Shares of Alcoholic Drinks by Global Brand Owner 2004-2007
Table 10 Off-trade Sales of Alcoholic Drinks by Distribution Format: % Value Analysis 2008
Table 11 Off-trade Sales of Alcoholic Drinks by Sector and Distribution Format: % Volume Analysis 2008
Table 12 Forecast Sales of Alcoholic Drinks by Sector: Total Volume 2008-2013
Table 13 Forecast Sales of Alcoholic Drinks by Sector: Total Value 2008-2013
Table 14 Forecast Sales of Alcoholic Drinks by Sector: % Total Volume Growth 2008-2013
Table 15 Forecast Sales of Alcoholic Drinks by Sector: % Total Value Growth 2008-2013
DEFINITIONS
Sources
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 Beverage Co (ABC): Key Facts
Summary 3 Al Ahram Beverage Co (ABC): Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Al Ahram Beverage Co (ABC): Competitive Position 2007
AUJAN INDUSTRIES CO LTD - ALCOHOLIC DRINKS - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Aujan Industries Co Ltd: Key Facts
Summary 6 Aujan Industries Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Aujan Industries Co Ltd: Competitive Position 2007
BEER IN SAUDI ARABIA
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 16 Sales of Beer by Subsector: Total Volume 2003-2008
Table 17 Sales of Beer by Subsector: Total Value 2003-2008
Table 18 Sales of Beer by Subsector: % Total Volume Growth 2003-2008
Table 19 Sales of Beer by Subsector: % Total Value Growth 2003-2008
Table 20 Sales of Beer by On-trade vs Off-trade Split: Volume 2003-2008
Table 21 Sales of Beer by On-trade vs Off-trade Split: Value 2003-2008
Table 22 Sales of Beer by On-trade vs Off-trade Split: % Volume Growth 2003-2008
Table 23 Sales of Beer by On-trade vs Off-trade Split: % Value Growth 2003-2008
Table 24 Company Shares of Beer by National Brand Owner 2003-2007
Table 25 Company Shares of Beer by Global Brand Owner 2003-2007
Table 26 Brand Shares of Beer 2004-2007
Table 27 Forecast Sales of Beer by Subsector: Total Volume 2008-2013
Table 28 Forecast Sales of Beer by Subsector: Total Value 2008-2013
Table 29 Forecast Sales of Beer by Subsector: % Total Volume Growth 2008-2013
Table 30 Forecast Sales of Beer by Subsector: % Total Value Growth 2008-2013