Soft Drinks in Saudi Arabia
Euromonitor International's Soft 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: 137 | Publication date: Jul 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
Asian speciality drinks; Bottled water; Carbonates; Concentrates; Fruit/vegetable juice; Functional drinks; RTD coffee; RTD tea
Executive summary
Excellent performance for soft drinks in 2008
In 2008, soft drinks in Saudi Arabia grew at a similar pace to the review period CAGR in retail volume and value terms. The economy and GDP growth were key factors in boosting consumer confidence in the overall economy and increasing purchasing power. Thus, the demand for soft drinks in general witnessed healthy growth in 2008 with functional drinks, bottled water and fruit/vegetable juice recording the most impressive performances.
Changing consumer habits drive demand
Similar to most countries in the region, Saudi consumers are experiencing lifestyle changes with more Westernised and modern lifestyles replacing traditional practices. This is partly a result of the growing Western expatriate community residing in the country attracted by a healthy working environment including high wages and excellent benefits. Local consumers are thus being influenced by Western habits and consuming products that were traditionally unpopular or unknown in the country such as functional drinks, which recorded the highest in total volume and value growth in 2008.
Multinational brands continue to dominate soft drinks
Multinational brands remained dominant in Saudi Arabia with Al Jomaih Bottling Plant, the manufacturer of Pepsi, the leading player in retail volume and value terms in 2008. Meanwhile, The Coca Cola Bottling Co of Saudi Arabia was the second ranked player in retail volume and value terms due to the performance of multinational brands such as Coca-Cola and Sprite. Both manufacturers constantly invest in high-profile satellite TV advertising throughout the year together with extensive marketing activities such as sponsoring popular music competitions and featuring famous pop stars in their advertisements. These companies’ long established brands enjoy high consumer loyalty and they are unlikely to be seriously challenged by competitors in the short-to-medium term.
Off-trade sales outperform on-trade sales in volume terms in 2008
The size of volume sales through the off-trade channel has long dominated soft drinks and this distribution channel continued to grow strongly in 2008. This was due to supermarkets/hypermarkets’ increasing popularity among a widening consumer base. The offer of one-stop shopping and family facilities such as children’s play areas and cafés and restaurants is making these outlets popular as a fun place to be and an ideal place for a family outing. Moreover, the presence of huge grocery outlets has encouraged the sales growth of soft drinks especially in volume terms as they allow for more brands to be displayed. This, in turn, drives sales, especially in the light of the strong promotional campaigns conducted in supermarkets/hypermarkets.
Value growth is expected to continue at a fast pace over the forecast period
The sales growth in soft drinks is expected to continue at a fast pace over the forecast period. A number of factors are expected to drive the demand for the different products available in the country. Firstly, the expected growth of the population and the increasingly high number of tourists visiting the country throughout the year, especially religious tourism for festivals such as Hajj and Omra. Moreover, changing lifestyles and consumer behaviour is expected to drive sales of healthier beverages such as low calorie cola carbonates.
Table of contents
SOFT DRINKS IN SAUDI ARABIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Excellent performance for soft drinks in 2008
Changing consumer habits drive demand
Multinational brands continue to dominate soft drinks
Off-trade sales outperform on-trade sales in volume terms in 2008
Value growth is expected to continue at a fast pace over the forecast period
KEY TRENDS AND DEVELOPMENTS
New product development is key to competitive positioning in soft drinks
Consumer foodservice boosts the performance of soft drinks
Emerging health trend boosts demand
MARKET DATA
Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2003-2008
Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2003-2008
Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2003-2008
Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2003-2008
Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: Volume 2008
Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: % Volume 2008
Table 7 Off-trade vs On-trade Sales of Soft Drinks by Sector: Value 2008
Table 8 Off-trade vs On-trade Sales of Soft Drinks by Sector: % Value 2008
Table 9 Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2003-2008
Table 10 Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2003-2008
Table 11 Off-trade Sales of Soft Drinks by Sector: Value 2003-2008
Table 12 Off-trade Sales of Soft Drinks by Sector: % Value Growth 2003-2008
Table 13 Company Shares of Off-trade Soft Drinks (as sold) by Volume 2004-2008
Table 14 Brand Shares of Off-trade Soft Drinks (as sold) by Volume 2005-2008
Table 15 Company Shares of Off-trade Soft Drinks (RTD) by Volume 2004-2008
Table 16 Brand Shares of Off-trade Soft Drinks (RTD) by Volume 2005-2008
Table 17 Company Shares of Off-trade Soft Drinks by Value 2004-2008
Table 18 Brand Shares of Off-trade Soft Drinks by Value 2005-2008
Table 19 Penetration of Private Label (as sold) by Sector by Volume 2003-2008
Table 20 Penetration of Private Label by Sector by Value 2003-2008
Table 21 Off-trade Sales of Soft Drinks by Sector and Distribution Format: % Analysis 2008
Table 22 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2008-2013
Table 23 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2008-2013
Table 24 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2008-2013
Table 25 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2008-2013
Table 26 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2008-2013
Table 27 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2008-2013
Table 28 Forecast Off-trade Sales of Soft Drinks by Sector: Value 2008-2013
Table 29 Forecast Off-trade Sales of Soft Drinks by Sector: % Value Growth 2008-2013
APPENDIX
FOUNTAIN SALES in Saudi Arabia
Table 30 Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2003-2008
Table 31 Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2003-2008
Table 32 Company Shares of Liquid Concentrates (as sold) by Off-trade Volume 2004-2008
Table 33 Brand Shares of Liquid Concentrates (as sold) by Off-trade Volume 2005-2008
Table 34 Company Shares of Powder Concentrates (as sold) by Off-trade Volume 2004-2008
Table 35 Brand Shares of Powder Concentrates (as sold) by Off-trade Volume 2005-2008
Table 36 Company Shares of Concentrates (RTD) by Off-trade Volume 2004-2008
Table 37 Brand Shares of Concentrates (RTD) by Off-trade Volume 2005-2008
Table 38 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2008-2013
Table 39 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - SAUDI ARABIA
AL QASSIM HEALTH WATER FACTORY - SOFT DRINKS - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Al Qassim Health Water Factory: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 3 Al Qassim Health Water Factory: Competitive Position 2008
AL RABIE ALSAUDIA DAIRY CO LTD - SOFT DRINKS - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Al Rabie AlSaudia Dairy Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Al Rabie AlSaudia Dairy Co Ltd: Competitive Position 2008
ALMARAI CO LTD - SOFT DRINKS - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Almarai Co Ltd: Key Facts
Summary 7 Almarai Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 8 Almarai Co Ltd: Competitive Position 2008
AUJAN SOFT DRINKS INDUSTRIES - SOFT DRINKS - SAUDI ARABIA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Aujan Soft Drinks Industries: Key Facts
Summary 10 Aujan Soft Drinks Industries: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 11 Aujan Soft Drinks Industries: Competitive Position 2008
CARBONATES IN SAUDI ARABIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 40 Low Calorie Carbonates by Subsector
Table 41 Off-trade Sales of Carbonates by Subsector: Volume 2003-2008
Table 42 Off-trade Sales of Carbonates by Subsector: Value 2003-2008
Table 43 Off-trade Sales of Carbonates by Subsector: % Volume Growth 2003-2008
Table 44 Off-trade Sales of Carbonates by Subsector: % Value Growth 2003-2008
Table 45 On-trade vs Off-trade Sales of Carbonates: Volume 2003-2008
Table 46 On-trade vs Off-trade Sales of Carbonates: Value 2003-2008
Table 47 On-trade vs Off-trade Sales of Carbonates: % Volume Growth 2003-2008
Table 48 On-trade vs Off-trade Sales of Carbonates: % Value Growth 2003-2008
Table 49 Company Shares of Carbonates by Off-trade Volume 2004-2008
Table 50 Brand Shares of Carbonates by Off-trade Volume 2005-2008
Table 51 Company Shares of Carbonates by Off-trade Value 2004-2008
Table 52 Brand Shares of Carbonates by Off-trade Value 2005-2008
Table 53 Forecast Off-trade Sales of Carbonates by Subsector: Volume 2008-2013
Table 54 Forecast Off-trade Sales of Carbonates by Subsector: Value 2008-2013
Table 55 Forecast Off-trade Sales of Carbonates by Subsector: % Volume Growth 2008-2013
Table 56 Forecast Off-trade Sales of Carbonates by Subsector: % Value Growth 2008-2013
FRUIT/VEGETABLE JUICE IN SAUDI ARABIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 57 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2003-2008
Table 58 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2003-2008
Table 59 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2003-2008
Table 60 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2003-2008
Table 61 Leading Flavours for 100% Juice: % Volume Breakdown 2003-2008
Table 62 Leading Flavours for Nectars (25-99% Juice): % Volume Breakdown 2003-2008
Table 63 Leading Flavours for Juice Drinks (up to 24% Juice): % Volume Breakdown 2003-2008
Table 64 % Share of Smoothies in 100% Juice and Nectars (25-99% Juice): Off-trade Value 2008
Table 65 Chilled Vs Ambient Not From Concentrate 100% Juice: % Analysis 2003-2008
Table 66 Chilled Vs Ambient Reconstituted 100% Juice: % Analysis 2003-2008
Table 67 Company Shares of Fruit/Vegetable Juice by Off-trade Volume 2004-2008
Table 68 Brand Shares of Fruit/Vegetable Juice by Off-trade Volume 2005-2008
Table 69 Company Shares of Fruit/Vegetable Juice by Off-trade Value 2004-2008
Table 70 Brand Shares of Fruit/Vegetable Juice by Off-trade Value 2005-2008
Table 71 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2008-2013
Table 72 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2008-2013
Table 73 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2008-2013
Table 74 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2008-2013
BOTTLED WATER IN SAUDI ARABIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Institutional Bottled Water Sales
Table 75 Sales of Bottled Water to Institutional Channel 2004-2008
Table 76 Off-trade Sales of Bottled Water: Volume 2003-2008
Table 77 Off-trade Sales of Bottled Water: Value 2003-2008
Table 78 Off-trade Sales of Bottled Water: % Volume Growth 2003-2008
Table 79 Off-trade Sales of Bottled Water: % Value Growth 2003-2008
Table 80 Company Shares of Bottled Water by Off-trade Volume 2004-2008
Table 81 Brand Shares of Bottled Water by Off-trade Volume 2005-2008
Table 82 Company Shares of Bottled Water by Off-trade Value 2004-2008
Table 83 Brand Shares of Bottled Water by Off-trade Value 2005-2008
Table 84 Forecast Off-trade Sales of Bottled Water: Volume 2008-2013
Table 85 Forecast Off-trade Sales of Bottled Water: Value 2008-2013
Table 86 Forecast Off-trade Sales of Bottled Water: % Volume Growth 2008-2013
Table 87 Forecast Off-trade Sales of Bottled Water: % Value Growth 2008-2013
FUNCTIONAL DRINKS IN SAUDI ARABIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 88 Still vs. Carbonated Functional Drinks % Off-trade Volume 2005-2008
Table 89 Off-trade Sales of Functional Drinks by Subsector: Volume 2003-2008
Table 90 Off-trade Sales of Functional Drinks by Subsector: Value 2003-2008
Table 91 Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2003-2008
Table 92 Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2003-2008
Table 93 Company Shares of Functional Drinks by Off-trade Volume 2004-2008
Table 94 Brand Shares of Functional Drinks by Off-trade Volume 2005-2008
Table 95 Company Shares of Functional Drinks by Off-trade Value 2004-2008
Table 96 Brand Shares of Functional Drinks by Off-trade Value 2005-2008
Table 97 Forecast Off-trade Sales of Functional Drinks by Subsector: Volume 2008-2013
Table 98 Forecast Off-trade Sales of Functional Drinks by Subsector: Value 2008-2013
Table 99 Forecast Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2008-2013
Table 100 Forecast Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2008-2013
CONCENTRATES IN SAUDI ARABIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Concentrates Conversions
Table 101 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format
Table 102 Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2003-2008
Table 103 Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2003-2008
Table 104 Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2003-2008
Table 105 Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2003-2008
Table 106 Off-trade Sales of Concentrates by Subsector: Value 2003-2008
Table 107 Off-trade Sales of Concentrates by Subsector: % Value Growth 2003-2008
Table 108 Company Shares of Concentrates by Off-trade Value 2004-2008
Table 109 Brand Shares of Concentrates by Off-trade Value 2005-2008
Table 110 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2008-2013
Table 111 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2008-2013
Table 112 Forecast Off-trade Sales of Concentrates by Subsector: Value 2008-2013
Table 113 Forecast Off-trade Sales of Concentrates by Subsector: % Value Growth 2008-2013
RTD TEA IN SAUDI ARABIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 114 Off-trade Sales of RTD Tea by Subsector: Volume 2003-2008
Table 115 Off-trade Sales of RTD Tea by Subsector: Value 2003-2008
Table 116 Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2003-2008
Table 117 Off-trade Sales of RTD Tea by Subsector: % Value Growth 2003-2008
Table 118 Leading Flavours for RTD Tea: % Volume Breakdown 2005-2008
Table 119 Company Shares of RTD Tea by Off-trade Volume 2004-2008
Table 120 Brand Shares of RTD Tea by Off-trade Volume 2005-2008
Table 121 Company Shares of RTD Tea by Off-trade Value 2004-2008
Table 122 Brand Shares of RTD Tea by Off-trade Value 2005-2008
Table 123 Forecast Off-trade Sales of RTD Tea by Subsector: Volume 2008-2013
Table 124 Forecast Off-trade Sales of RTD Tea by Subsector: Value 2008-2013
Table 125 Forecast Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2008-2013
Table 126 Forecast Off-trade Sales of RTD Tea by Subsector: % Value Growth 2008-2013
RTD COFFEE IN SAUDI ARABIA
HEADLINES
TRENDS
PROSPECTS