Bottled Water in Saudi Arabia

PROSPECTS

Increased health awareness promotes bottled water

Many consumers in Saudi Arabia are starting to focus on drinking the recommended daily intake of water, due to increased health awareness in the country, especially with the harsh climate conditions in the country. Moreover, tap water in Saudi Arabia is mostly desalinated, and some consumers use bottled water not only for drinking but also for cooking food and preparing cold and hot drinks.

Bottled water to gain share from other soft drinks

During the forecast period, it is expected that bottled water will gain share from other soft drinks categories in Saudi Arabia, due to the ongoing increase in health awareness. Moreover, increased life expectancy, the country’s harsh climate conditions, the growing number of visitors and pilgrims, as per Vision 2030, focusing on tourism, and the ongoing expansion of distribution channels are set to support growth of bottled water in the kingdom.

Consumers in Saudi Arabia favour home delivery

For daily-use water, consumers in Saudi Arabia tend to favour home delivery, and bottled water companies are investing heavily in such services. Many bottled water companies not only provide bulk sizes of more than eight litres, but also offer a wide variety of sizes, starting from 125ml, to attract consumers and gain their loyalty.

COMPETITIVE LANDSCAPE

Safa leads off-trade bottled water

Safa leads off-trade bottled water volume sales in Saudi Arabia, thanks to its effective distribution strategy mainly targeting independent small groceries and its reasonable prices. It maintained its lead despite only limited participation in promotional campaigns, unlike most bottled water companies in the Saudi market in 2018, which heavily promoted their brands.

Bottled water companies emphasise product packaging

Companies in Saudi Arabia are clearly emphasising their products’ sodium and pH levels on their product labelling, as well as focusing on packaging design as part of their promotional campaigns for their brand. Moreover, they are constantly communicating with their customers through their social media platforms to remind them about the importance of drinking the recommended daily water intake, educating them about water ingredients, especially sodium and pH levels, and sharing information and news about their brands.

Aggressive promotional campaigns take place

Many bottled water companies participated in promotional campaigns in 2018, including in-store promotional stands, wider shelf space, an extensive presence across various distribution channels, home delivery and price reductions. Examples of price reductions include Al Ain multipacks of 40x330ml reduced in price from SAR17.

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