Soft Drinks in the United Arab Emirates
Euromonitor International's Soft 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.
Get immediate access to strategic market analysis when you buy reports online
Tables: 25 | Publication date: Nov 2006
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
Executive summary
Strong perfomance continues
In 2005, both volume and value development outperformed the previous year with strong double-digit growth. Value growth only slightly exceeded volume development. The reason behind is that the unit price increased insignificantly due to the fact that local players have established strong presence on the market and their products are sold at a lower unit price than multinational brands.
A number of both external and internal factors influenced the soft drinks market. The rapidly increasing local population as more expatriates arrive from both West and East not only boosted soft drinks volume sales, but also indicated early signs of a shift in consumer taste. Furthermore, local companies proved to be ready to compete with well-established multinationals such as PepsiCo Inc, by entering alternatives to the big brands in the carbonates sector of the market.
Bottled water dominates over carbonates
At the end of the review period, bottled water was the largest sector within soft drinks, accounting for half of total market volume sales. Over the review period, bottled water’s share of market volume sales increased remarkably. In 2005, local consumption of bottled water stood at over 103 litres per capita. Some households used bottled water for home cooking, not only for drinking. The country’s hot climate also largely contributed to bottled water consumption, as many households began using water dispensers and coolers too.
Health awareness rises
It is a well known fact that GCC countries are heavy consumers of carbonates. At the end of the review period consumption stood at almost 73 litres per capita and was still rising. The increasing number of Western-style schools in the region over the review period familiarised children with products typical of the West, and carbonates in particular. Multinationals and PepsiCo Inc in particular were active in promoting their own drinks via sponsorship of various events as well as new product launches.
Alarmed by high carbonates consumption in the country and especially among the children, local authorities started to take actions to increase health awareness at least among the younger generation. In 2005, parents of young children reported that some of the local school were explaining the negative effects of consuming carbonated drinks by demonstrating various experiments, such as using Coca-Cola to dissolve a milk tooth, or 7-Up as stain remover.
In addition, consumption habits introduced by expatriates from the West increased demand for “healthier” options such as juice, or bottled water. At the end of the review period more healthy alternatives arrived on the local market after proven success in the West.
On-trade volume sales relatively high
At the end of the review period, on-trade sales exceeded 20% of total volume sales. Heavy tourism in the country definitely had a strong impact on the high soft drinks sales in hotels, bars, and clubs.
Positive future
Over the forecast period, soft drinks is expected to continue strong development in both volume and value terms, fuelled by the increasing population as well as in-coming tourism. Sales will be mainly driven by new product launches and increasing demand for “healthier” soft drinks such as fruit/vegetable juice or bottled water. Country-specific demand will also stimulate more niche products such as functional drinks development. The restriction on alcohol consumption on a religious basis coupled with the growing number of bars and clubs in the country presents a unique opportunity for functional drinks, and energy drinks in particular.
Table of contents
SOFT DRINKS IN THE UNITED ARAB EMIRATES : MARKET INSIGHT
1. EXECUTIVE SUMMARY
2. TOTAL SOFT DRINKS SALES
2.1 Market Performance
Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2000-2005
Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2000-2005
Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2000-2005
Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2000-2005
Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: Volume 2005
Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: % Volume 2005
Table 7 Off-trade vs On-trade Sales of Soft Drinks by Sector: Value 2005
Table 8 Off-trade vs On-trade Sales of Soft Drinks by Sector: % Value 2005
Table 9 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2005-2010
Table 10 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2005-2010
Table 11 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2005-2010
Table 12 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2005-2010
3. OFF-TRADE SOFT DRINKS SALES
3.1 Market Performance
Table 13 Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2000-2005
Table 14 Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2000-2005
Table 15 Off-trade Sales of Soft Drinks by Sector: Value 2000-2005
Table 16 Off-trade Sales of Soft Drinks by Sector: % Value Growth 2000-2005
3.2 Competitive Environment
Table 17 Company Shares of Off-trade Soft Drinks by Value 2001-2005
Table 18 Brand Shares of Off-trade Soft Drinks by Value 2002-2005
3.3 Leading Company Profile: Dubai Refreshments Co
3.4 Leading Company Profile: Masafi Mineral Water Co
Summary 1 Masafi Mineral Water Co Operational Indicators 2004
3.5 New Product Launches
Summary 2 Major New Product Launches 2004-2006
3.6 Off-Trade Distribution
Table 19 Off-trade Sales of Soft Drinks by Sector and Distribution Format: % Analysis 2005
3.7 Retailer Activity and Private Label Trends
3.8 Forecast Market Performance
Table 20 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2005-2010
Table 21 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2005-2010
Table 22 Forecast Off-trade Sales of Soft Drinks by Sector: Value 2005-2010
Table 23 Forecast Off-trade Sales of Soft Drinks by Sector: % Value Growth 2005-2010
4. DEFINITIONS