Bottled Water in the Middle East and Africa

September 2020

Bottled water makes up over two-thirds of the soft drinks market in the Middle East and Africa and will continue to dominate over the foreseeable future. Demand is high due to a scarcity of clean water, particularly in rural areas, with bulk buying seeing particularly strong growth.

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Key findings

Climate and water scarcity provide fertile ground for bottled water

Many countries across the region are seeing higher rates of per capita consumption. This is due to high population sizes fueling demand for clean, safe bottled water. This is also due to the format of sachet water being much cheaper to produce and affordable for many consumers in comparison with plastic bottles. Consumers are opting for value for money where their disposable income does not stretch far, and so are making cost-effective bulk purchases. Companies such as Les Eaux Minérales d'Oulmès provide this choice for consumers. Hot temperatures across the region are also key to rising demand.

Nigeria dominates

Nigeria dominates in volume terms, but all national markets are seeing rising sales. Saudi Arabia was the only country to see negative growth in 2019, due to the ongoing departure of expatriates, but sales are rising again in 2020.

Coronavirus causes bottled water consumption to surge in 2020

The Coronavirus (COVID-19) pandemic has seen demand surge in 2020. Lockdown measures have prompted consumers to panic buy. Sales of food and beverages in general have benefited from this, as grocery retail has remained open and accessible. In the Middle East and Africa, this has been particularly relevant for bottled water, given that in many countries, tap water is undrinkable. Fear of the virus has also stimulated demand for bottled water, as keeping hydrated is viewed by many as a necessary preventative health measure.

Population growth and underdeveloped markets hold significant potential

Potential demand for bottled water remains high, with an accordantly positive outlook for sales. Population growth is increasing demand and urbanisation stands to expand product availability and raise disposable income levels.

Scope
Key findings
Dynamic growth in Middle East and Africa
Growth rises in 2020 due to stockpiling
Still bottled water an essential in Nigeria
High growth in Cameroon but Nigeria dominates
Still bottled water far greater than other categories
Major consumption demand in Nigeria and Ghana
Independent small grocers remain key as traditional outlets predominate
Traditional retail remains key; e-commerce also rising
National markets typically concentrated in the hands of the few
Nestlé and The Coca-Cola Co lead
Domestic players focus on local market; wide presence for Coca-Cola Co
Declines for Hana, Nova and Dasani
Climate, water problems and population growth to drive demand
Nigeria, Tunisia, Morocco and Saudi Arabia to see highest volume gains
Positive environment for growth across the region
Algeria: Market Context
Algeria: Competitive and Retail Landscape
Cameroon: Market Context
Cameroon: Competitive and Retail Landscape
Egypt: Market Context
Egypt: Competitive and Retail Landscape
Israel: Market Context
Israel: Competitive and Retail landscape
Kenya: Market Context
Kenya: Competitive and Retail Landscape
Morocco: Market Context
Morocco: Competitive and Retail Landscape
Nigeria: Market Context
Nigeria: Competitive and Retail Landscape
Saudi Arabia: Market Context
Saudi Arabia: Competitive and Retail Landscape
South Africa: Market Context
South Africa: Competitive and Retail Landscape
Tunisia: Market Context
Tunisia: Competitive and Retail Landscape
United Arab Emirates: Market Context
United Arab Emirates: Competitive and Retail Landscape
Growth decomposition explained

Soft Drinks

This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.

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