Hot Drinks in the United Arab Emirates

Euromonitor International's Hot Drinks in the United Arab Emirates 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: 61  |  Publication date: Sep 2009
Cost: 
GBP400.00

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

Coffee culture and an influx of expatriates and tourists drive the market

Hot drinks posted double-digit total volume growth in 2008 to outperform the review period CAGR thanks to a buoyant coffee culture and influx of expatriates and tourists. Firstly, in addition to the established international specialist coffee houses in the United Arab Emirates, a wave of market entrants are exploring new opportunities. Secondly, the growing inflow of expatriates and tourists to the country contributed to the higher volume sales.

Tea stands strong in the presence of inflationary woes

In spite of record inflation in 2008, the tea sector registered record volume sales growth, the highest of the review period. This performance was partly down to a traditional tea culture in this part of the world, which houses expatriates from the Middle East and Asia, two regions where tea is hugely popular. In addition, other factors have fuelled growth, like standard brands Lipton and Alokozay embarking on a series of advertising campaigns during the course of the year, increasing fruit/herbal tea offerings from Lipton and Twinings and the launch of new product developments such as Lipton Chai Latté.

Hot weather remains an obstacle to growth

The United Arab Emirates’ sub-tropical climate – with extreme temperatures and humidity levels – hampers hot drinks consumption during the summer. With the wide availability of soft drinks in both the on-trade and off-trade channels, these products remain an attractive option during the summer.

Multinational manufacturers/brands extend their lead

With negligible domestic manufacturing, multinational manufacturers/brands continued to dominate the hot drinks market, with Unilever and Nestlé alone accounting for more than 25% of total off-trade value sales in 2008. The concentrated nature of the market, coupled with strong brand loyalty, limit both competition and the potential for domestic and regional companies to enter the market. There are currently only two regional producers competing within the market and the majority of players remain multinationals. As a result, there is a distinct lack of new product development within the market. The majority of consumers are used to buying their favourite brands and show little inclination to experiment with new products.

Supermarkets/hypermarkets clinch the leading position for the first time

Historically, small independent grocers dominated the off-trade distribution of hot drinks thanks to their presence in most neighbourhoods. In 2008 supermarkets/hypermarkets seized the leading position thanks to expanding coverage, regular promotions, competitive pricing and a growing trend for consumers to shop on a weekly basis.

Robust forecast growth

The hot drinks market is expected to post healthy growth rates over the forecast period, although slightly short of the historical growth levels as the hot weather will continue to take affect summer consumption. In value terms the market will perform well, largely due to premiumisation

Table of contents

HOT DRINKS IN THE UNITED ARAB EMIRATES : MARKET INSIGHT

EXECUTIVE SUMMARY

Coffee culture and an influx of expatriates and tourists drive the market

Tea stands strong in the presence of inflationary woes

Hot weather remains an obstacle to growth

Multinational manufacturers/brands extend their lead

Supermarkets/hypermarkets clinch the leading position for the first time

Robust forecast growth

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 Penetration of Private Label by Sector 2004-2008

Table 14 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008

Table 15 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008

Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013

Table 17 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013

Table 18 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013

Table 19 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013

Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013

Table 21 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013

Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2008-2013

Table 23 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013

Table 24 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013

Table 25 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013

DEFINITIONS

Summary 1 Research Sources

COFFEE

Headlines

Trends

Competitive Landscape

Prospects

SECTOR DATA

Table 26 Retail Sales of Coffee by Type: Volume 2003-2008

Table 27 Retail Sales of Coffee by Type: Value 2003-2008

Table 28 Retail Sales of Coffee by Type: % Volume Growth 2003-2008

Table 29 Retail Sales of Coffee by Type: % Value Growth 2003-2008

Table 30 Coffee Company Shares 2004-2008

Table 31 Coffee Brand Shares 2005-2008

Table 32 Forecast Retail Sales of Coffee by Type: Volume 2008-2013

Table 33 Forecast Retail Sales of Coffee by Type: Value 2008-2013

Table 34 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013

Table 35 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013

TEA

Headlines

Trends

Competitive Landscape

Prospects

Sector Data

Table 36 Fruit/Herbal Tea by Type: % Off-trade Volume 2007-2008

Table 37 Retail Sales of Tea by Subsector: Volume 2003-2008

Table 38 Retail Sales of Tea by Subsector: Value 2003-2008

Table 39 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008

Table 40 Retail Sales of Tea by Subsector: % Value Growth 2003-2008

Table 41 Tea Company Shares 2004-2008

Table 42 Tea Brand Shares 2005-2008

Table 43 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013

Table 44 Forecast Retail Sales of Tea by Subsector: Value 2008-2013

Table 45 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013

Table 46 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013

OTHER HOT DRINKS

Headlines

Trends

Competitive Landscape

Prospects

Sector Data

Table 47 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008

Table 48 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008

Table 49 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008

Table 50 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008

Table 51 Other Hot Drinks Company Shares 2004-2008

Table 52 Other Hot Drinks Brand Shares 2005-2008

Table 53 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013

Table 54 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013

Table 55 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013

Table 56 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013

MAATOUK MAISON DU CAFÉ

Strategic Direction

Key Facts

Summary 2 Maatouk Maison du Café: Key Facts

Company Background

Production

Competitive Positioning

Summary 3 Maatouk Maison du Café: Competitive Position 2008

SOCIÉTÉ ETS MICHEL NAJJAR

Strategic Direction

Key Facts

Summary 4 Société Ets Michel Najjar: Key Facts

Company Background

Production

Competitive Positioning

Summary 5 Société Ets Michel Najjar: Competitive Position 2008