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.
Buy online to access strategic market analysis and an interactive statistical database of duty paid retail volume and value sales, illicit trade volume, company and brand shares, pricing, distribution and production data
Tables: 69 | Publication date: May 2009
Why buy this report
- 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
Coffee; Other hot drinks; Tea
Executive summary
Rise of specialist coffee shops stimulates growth
Young people in Saudi Arabia are increasingly spending time outside the home, socialising with their friends in specialist coffee shops, particularly given the absence of other forms of entertainment in the Kingdom. Older people still prefer to sit in traditional coffee shops where they have fresh coffee, tea and narghila (shisha), meaning that on-trade outlets that sell coffee enjoy a broad consumer base.
Positive growth across market
Hand in hand with overall growth in the economy, hot drinks continued to grow and performed well over the review period. Healthy GDP growth in the later years of the review period positively impacted purchasing power in the Kingdom, as disposable incomes rose. More people were able to afford luxuries and leisure activities as well as going out, which positively impacted the hot drinks market, particularly given the absence of alcohol in the country.
Competition intensifies between domestic and multinational companies
Saudi Arabia presents many opportunities for both domestic and multinational manufacturers alike. The racial diversity in the country with locals, other Arabs, Asians and Westerners living together presents a unique opportunity for different companies to introduce diverse products targeting different segments of society. Multinationals, including Nestlé SA and Lipton Tea Factory FZE, which together account for 23% of value total sales, dominate categories such as instant coffee, other hot drinks and tea due to their long-standing presence in the market and extensive advertising campaigns. Domestic companies on the other hand, including El Farouki Coffee Center and Al Najjar Co with a combined value share of more than 12%, tend to dominate categories such as fresh coffee, as they can cater specifically to local tastes.
Off-trade sales lead the way
Sales through the off-trade channel continued to lead the way in 2008. This is attributed to the fact that supermarkets/hypermarkets are becoming increasingly popular among a growing consumer base. The one-stop shop factor offered by these outlets, together with family facilities such as children’s play areas alongside cafés/bars and full-service restaurants have made the shopping experience fun for the whole family and such outings have become regarded as a recreational pursuit. Moreover, the large display area in these outlets allows for greater exposure of hot drinks brands, thus pushing sales further. The existence of private label brands that retail at a lower price than other brands is also fuelling growth among less affluent consumers.
Slower growth is predicted over the forecast period
Slower growth across all sectors is anticipated over the forecast period. The Saudi economy is totally dependent on oil, which has during the second half of 2008 witnessed a substantial decrease in price, falling from US$145/barrel to US$67/barrel. Oil prices are expected to continue falling over the next few years, a fact that is likely to have an adverse effect on the economy. Consumers are likely to respond to this by reducing expenditure on non-essentials, a reaction that will contribute to the expected slowdown in growth.
Table of contents
HOT DRINKS IN SAUDI ARABIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Rise of specialist coffee shops stimulates growth
Positive growth across market
Competition intensifies between domestic and multinational companies
Off-trade sales lead the way
Slower growth is predicted over the forecast period
KEY TRENDS AND DEVELOPMENTS
Population growth major factor behind growth of hot drinks
Emerging health trend beneficial to hot drinks sales
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2003-2008
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2003-2008
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008
Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008
Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2003-2008
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2003-2008
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008
Table 11 Hot Drinks Company Shares by Value 2004-2008
Table 12 Hot Drinks Brand Shares by Value 2005-2008
Table 13 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008
Table 14 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008
Table 15 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013
Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013
Table 17 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013
Table 18 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013
Table 19 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013
Table 21 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2008-2013
Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 23 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013
Table 24 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013
Production/Import/Export Data
Table 25 Production/Imports/Exports/Apparent Consumption of Hot Drinks by Sector 2001-2007
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - SAUDI ARABIA
AMS BAESHEN & CO - HOT DRINKS - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 AMS Baeshen: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 3 AMS Baeshen & Co: Competitive Position 2008
BARNIES SAUDI ARABIA - HOT DRINKS - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Barnies Saudi Arabia: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Barnies Saudi Arabia: Competitive Position 2008
BATTERJEE FOODSTUFFS FACTORY - HOT DRINKS - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Batterjee Foodstuffs Factory: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Batterjee Foodstuffs Factory: Competitive Position 2008
HALWANI BROS CO - HOT DRINKS - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Halwani Bros Co: Key Facts
Summary 9 Halwani Brothers Co: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 Halwani Brothers Co: Competitive Position 2008
COFFEE IN SAUDI ARABIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 26 Instant Coffee by Speciality Type 2004-2008
Table 27 Instant Coffee by Speciality Type 2004-2008
Table 28 Retail Sales of Coffee by Type: Volume 2003-2008
Table 29 Retail Sales of Coffee by Type: Value 2003-2008
Table 30 Retail Sales of Coffee by Type: % Volume Growth 2003-2008
Table 31 Retail Sales of Coffee by Type: % Value Growth 2003-2008
Table 32 Standard Vs Coffee Pods 2004-2008
Table 33 Coffee Company Shares 2004-2008
Table 34 Coffee Brand Shares 2005-2008
Table 35 Forecast Retail Sales of Coffee by Type: Volume 2008-2013
Table 36 Forecast Retail Sales of Coffee by Type: Value 2008-2013
Table 37 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013
Table 38 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013
TEA IN SAUDI ARABIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 39 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2008
Table 40 Retail Sales of Tea by Subsector: Volume 2003-2008
Table 41 Retail Sales of Tea by Subsector: Value 2003-2008
Table 42 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008
Table 43 Retail Sales of Tea by Subsector: % Value Growth 2003-2008
Table 44 Tea Company Shares 2004-2008
Table 45 Tea Brand Shares 2005-2008
Table 46 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013
Table 47 Forecast Retail Sales of Tea by Subsector: Value 2008-2013
Table 48 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013
Table 49 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013
OTHER HOT DRINKS IN SAUDI ARABIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 50 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008
Table 51 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008
Table 52 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008
Table 53 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008
Table 54 Other Hot Drinks Company Shares 2004-2008
Table 55 Other Hot Drinks Brand Shares 2005-2008
Table 56 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013
Table 57 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013
Table 58 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013
Table 59 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013