Hot Drinks in Saudi Arabia
Euromonitor International's Hot 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: 49 | Publication date: Jul 2006
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Executive summary
Healthy growth in hot drinks in Saudi Arabia
The hot drinks market in Saudi Arabia continued its excellent performance in 2005. Over the review period, the CAGRs in volume and current value terms were approximately 5% and 7%, respectively. Drinking hot drinks in Saudi Arabia, especially coffee and tea, is a custom. This custom is popular among consumers of all ages. The most popular hot drinks are fresh coffee and black standard tea, which are served on all social occasions. However, there is an increasing demand for instant coffee, decaffeinated coffee, green tea and fruit/herbal tea.
Coffee the most popular hot drink
Drinking coffee is a traditional habit amongst Saudi people. It is consumed throughout the day and at all social occasions. Fresh coffee, including fresh ground coffee bought from specialist coffee shops, is mainly consumed by adults with a preference for this type of drink. Instant coffee, available in supermarkets/hypermarkets and other retail stores, is mainly consumed by the younger generation. However consumption of instant coffee by the older generation is increasing due to the marketing of a variety of products. Value sales of coffee represented approximately 58% of retail sales of hot drinks in 2005.
High competition between locals and multinationals
Some multinational brands of hot drinks, such as Lipton, Nescafé and Nesquik, are very popular in Saudi Arabia; and some are the leaders within different sectors of hot drinks. This is because they have provided high-quality products over a long period of time. However, some national brands of hot drinks are preferred to imported brands. The Al Rabea tea brand had the second highest market share of all hot drinks in Saudi Arabia in 2005. Other national brands of hot drinks that performed well in 2005 were mainly fresh coffee brands, such as El Farouki and Al Najjar coffee.
Popularity of coffee and tea overcomes the obstacle of hot weather
Saudi Arabia is the largest country, in terms of surface area, in the Middle East, but 95% of the country is desert. The desert temperature can be over 45 degrees centigrade on a summer's day, with little, if any, variation in the winter months. Given the lack of nightlife and the prohibition of alcohol, coffee and tea are seen as socialising tools in the Kingdom. Therefore, the demand for these products is high. This is demonstrable by the increase in sales of hot drinks and the presence of a number of national companies producing hot drinks.
More competition over the forecast period
Sales of hot drinks in Saudi Arabia are reaching optimum levels, particularly in terms of coffee and tea sales. Therefore, competition in hot drinks during the forecast period is expected to be more intense. This is because producers of hot drinks will need to maintain or increase their sales of hot drinks to Saudi consumers. Competition will take the form of new, high-quality, flavoured product launches, which are price competitive. These products will boast innovative packaging and attractive promotions. This is expected to lead to a slight decrease in unit price for some types of products, such as tea bags black standard and green tea. This decrease is expected to influence value growth during the forecast period, making the rate of constant value growth slightly lower than during the review period. However, the high unit price for some other types of hot drinks such as black speciality tea and fruit/herbal tea is expected to stabilise the overall value growth for hot drinks during the forecast period.
Table of contents
HOT DRINKS IN SAUDI ARABIA : MARKET INSIGHT
EXECUTIVE SUMMARY
HOT DRINKS SALES
Market Performance
Table 1 Retail Sales of Hot Drinks by Sector: Volume 2000-2005
Table 2 Retail Sales of Hot Drinks by Sector: Value 2000-2005
Table 3 Retail Sales of Hot Drinks by Sector: % Volume Growth 2000-2005
Table 4 Retail Sales of Hot Drinks by Sector: % Value Growth 2000-2005
Competitive Environment
Table 5 Hot Drinks Company Shares by Retail Value 2001-2005
Table 6 Hot Drinks Brand Shares by Retail Value 2002-2005
Retail Distribution
Table 7 Retail Sales of Hot Drinks by Distribution Format: % Analysis 2000/2005
Table 8 Retail Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2005
Retailer Activity and Private Label Trends
Table 9 Penetration of Private Label by Sector 2001-2005
Forecast Market Performance
Table 10 Forecast Retail Sales of Hot Drinks by Sector: Volume 2005-2010
Table 11 Forecast Retail Sales of Hot Drinks by Sector: Value 2005-2010
Table 12 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2005-2010
Table 13 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2005-2010
DEFINITIONS
LOCAL COMPANY PROFILES - SAUDI ARABIA
AMS BAESHEN & CO - HOT DRINKS - SAUDI ARABIA
COMPANY BACKGROUND
RECENT NEWS
Summary 1 Summary - AMS Baeshen & Co: Existing Brands 2005
LIPTON TEA FACTORY FZE - HOT DRINKS - SAUDI ARABIA
COMPANY BACKGROUND
RECENT NEWS
PRODUCTION CAPACITY
Summary 2 Summary - Lipton Tea Factory FZE: Existing Brands 2005
NESTLé SA - HOT DRINKS - SAUDI ARABIA
COMPANY BACKGROUND
RECENT NEWS
Summary 3 Summary - Nestlé SA: Existing Brands 2005
COFFEE IN SAUDI ARABIA
SECTOR PERFORMANCE
2005 headlines
Coffee sales hold first place in the hot drinks market in 2005
Fresh coffee is the pioneering product in hot drinks
Branded products popular but loose brands included under 'others' lead
Nestlé leads growth in instant coffee sales
Increase in popularity of instant decaffeinated coffee
Forecast performance
Table 14 Retail Sales of Coffee by Type: Volume 2000-2005
Table 15 Retail Sales of Coffee by Type: Value 2000-2005
Table 16 Retail Sales of Coffee by Type: % Volume Growth 2000-2005
Table 17 Retail Sales of Coffee by Type: % Value Growth 2000-2005
Table 18 Coffee Company Shares 2001-2005
Table 19 Coffee Brand Shares 2002-2005
Summary 4 Summary - Coffee: New Product Launches 2005
Table 20 Forecast Retail Sales of Coffee by Type: Volume 2005-2010
Table 21 Forecast Retail Sales of Coffee by Type: Value 2005-2010
Table 22 Forecast Retail Sales of Coffee by Type: % Volume Growth 2005-2010
Table 23 Forecast Retail Sales of Coffee by Type: % Value Growth 2005-2010
PERFORMANCE OF FILTERED COFFEE AND COFFEE PODS
Filtered coffee and coffee pods do not appeal to Saudis consumers
TEA IN SAUDI ARABIA
SECTOR PERFORMANCE
2005 headlines
Tea is as popular as fresh coffee in Saudi Arabia
Loose black standard tea sees largest sales in the tea sector
Tea bags black standard most profitable
Black speciality tea sees highest value growth
Green tea attracts more Saudi consumers
High unit price restricts sales of fruit/herbal tea
Fierce competition between imported and national tea brands
Forecast performance
Table 24 Retail Sales of Tea by Subsector: Volume 2000-2005
Table 25 Retail Sales of Tea by Subsector: Value 2000-2005
Table 26 Retail Sales of Tea by Subsector: % Volume Growth 2000-2005
Table 27 Retail Sales of Tea by Subsector: % Value Growth 2000-2005
Table 28 Tea Company Shares 2001-2005
Table 29 Tea Brand Shares 2002-2005
Summary 5 Summary - Tea: New Product Launches 2005
Table 30 Forecast Retail Sales of Tea by Subsector: Volume 2005-2010
Table 31 Forecast Retail Sales of Tea by Subsector: Value 2005-2010
Table 32 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2005-2010
Table 33 Forecast Retail Sales of Tea by Subsector: % Value Growth 2005-2010
OTHER HOT DRINKS IN SAUDI ARABIA
SECTOR PERFORMANCE
2005 headlines
Dynamic 2005 from other hot drinks in Saudi Arabia
Chocolate-based flavoured powder drinks dominates, whilst Nestlé leads the sector overall
Limited sales of malt-based hot drinks
Forecast performance
Table 34 Retail Sales of Other Hot Drinks by Subsector: Volume 2000-2005
Table 35 Retail Sales of Other Hot Drinks by Subsector: Value 2000-2005
Table 36 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2000-2005
Table 37 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2000-2005
Table 38 Other Hot Drinks Company Shares 2001-2005
Table 39 Other Hot Drinks Brand Shares 2002-2005
Summary 6 Summary - Other Hot Drinks: New Product Launches 2005
Table 40 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2005-2010
Table 41 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2005-2010
Table 42 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2005-2010
Table 43 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2005-2010