Executive Summary

Mar 2019
PROSPECTS
Excise taxes and VAT greatly impact consumers’ buying behaviour

The 50% excise tax and 5% VAT had a significant impact on consumers’ buying behaviour in Saudi Arabia in 2018. Although consumers are used to consuming carbonates with their lunch or dinner, now they are starting to perceive them as expensive and unhealthy beverages.

Reduced sugar and calories expected to support carbonates

With the ongoing increase in health awareness and the high price of carbonates in Saudi Arabia, carbonates are expected to continue witnessing heavy competition from other soft drinks. Moreover, the declining number of expatriates in the country, due to the expat levy and Saudisation, is set to restructure the Saudi market with a smaller consumer base.

Lime continues to dominate non-cola carbonates flavours

Lime continues to dominate non-cola carbonates flavours in Saudi Arabia, with PepsiCo’s Mirinda Citrus and 7-Up leading sales of non-cola carbonates. Some consumers find lime flavour more refreshing and lighter tasting than cola carbonates, and they are lower in calories and sugar.

COMPETITIVE LANDSCAPE
PepsiCo continues to dominate off-trade sales of carbonates

PepsiCo continues to dominate off-trade sales of carbonates, through its flagship brands Pepsi, Mirinda, 7-Up, Mountain Dew, Shani and Tropicana Frutz. The company invested heavily in marketing in 2018.

New product developments are projected to rise

During the forecast period, it is expected that carbonates will continue to be challenged by consumers’ negative perceptions of carbonates, and the effects of the 50% excise taxes and 5% VAT. However, new product developments, including sugar-free and reduced sugar carbonates, using natural ingredients such as stevia instead of artificial sweeteners, new flavours, packaging innovations, promotional campaigns and wide distribution are set to reduce the impact on sales.

Extensive promotional campaigns support carbonates

Extensive promotional campaigns supported carbonates in 2018, with the key players participating in mass media and social media campaigns, and offering themed packaging, in-store promotional stands, wider shelf space, an extensive presence across various distribution channels, and price reductions. Examples of price reductions include Coca-Cola, Sprite and Fanta multipacks of 24x300ml cans at a price of SAR50.

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Carbonates in Saudi Arabia

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Overview

Discover the latest market trends and uncover sources of future market growth for the Carbonates industry in Saudi Arabia with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Carbonates industry in Saudi Arabia, our research will save you time and money while empowering you to make informed, profitable decisions.

The Carbonates in Saudi Arabia market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Carbonates in Saudi Arabia?
  • What are the major brands in Saudi Arabia?
  • Who are the key consumers of carbonates in Saudi Arabia?
  • How do premium vs. standard vs. economy brands compete for sales and market share?
  • How does the sales performance of domestic manufacturers compare to international brands/manufacturers?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Soft Drinks market research database.

Carbonates in Saudi Arabia - Category analysis

HEADLINES

PROSPECTS

Excise taxes and VAT greatly impact consumers’ buying behaviour
Reduced sugar and calories expected to support carbonates
Lime continues to dominate non-cola carbonates flavours

COMPETITIVE LANDSCAPE

PepsiCo continues to dominate off-trade sales of carbonates
New product developments are projected to rise
Extensive promotional campaigns support carbonates

CATEGORY DATA

Table 1 Off-trade vs On-trade Sales of Carbonates: Volume 2013-2018
Table 2 Off-trade vs On-trade Sales of Carbonates: Value 2013-2018
Table 3 Off-trade vs On-trade Sales of Carbonates: % Volume Growth 2013-2018
Table 4 Off-trade vs On-trade Sales of Carbonates: % Value Growth 2013-2018
Table 5 Off-trade Sales of Carbonates by Category: Volume 2013-2018
Table 6 Off-trade Sales of Carbonates by Category: Value 2013-2018
Table 7 Off-trade Sales of Carbonates by Category: % Volume Growth 2013-2018
Table 8 Off-trade Sales of Carbonates by Category: % Value Growth 2013-2018
Table 9 Total Sales of Carbonates by Fountain On-trade: Volume 2013-2018
Table 10 Total Sales of Carbonates by Fountain On-trade: % Volume Growth 2013-2018
Table 11 Leading Flavours for Non-cola Carbonates: % Volume 2013-2018
Table 12 NBO Company Shares of Off-trade Carbonates: % Volume 2014-2018
Table 13 LBN Brand Shares of Off-trade Carbonates: % Volume 2015-2018
Table 14 NBO Company Shares of Off-trade Carbonates: % Value 2014-2018
Table 15 LBN Brand Shares of Off-trade Carbonates: % Value 2015-2018
Table 16 Forecast Off-trade Sales of Carbonates by Category: Volume 2018-2023
Table 17 Forecast Off-trade Sales of Carbonates by Category: Value 2018-2023
Table 18 Forecast Off-trade Sales of Carbonates by Category: % Volume Growth 2018-2023
Table 19 Forecast Off-trade Sales of Carbonates by Category: % Value Growth 2018-2023
Table 20 Forecast Total Sales of Carbonates by Fountain On-trade: Volume 2018-2023
Table 21 Forecast Total Sales of Carbonates by Fountain On-trade: % Volume Growth 2018-2023

Soft Drinks in Saudi Arabia - Industry Overview

EXECUTIVE SUMMARY

Excise taxes continue to affect consumers’ buying behaviour
Soft drinks see increased promotional campaigns
RTD tea and coffee continue to witness the highest growth
Companies emphasise brand diversity
Health and wellness to support soft drinks demand

MARKET DATA

Table 22 Off-trade vs On-trade Sales of Soft Drinks (RTD) by Channel: Volume 2013-2018
Table 23 Off-trade vs On-trade Sales of Soft Drinks (RTD) by Channel: % Volume Growth 2013-2018
Table 24 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2013-2018
Table 25 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2013-2018
Table 26 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: Volume 2018
Table 27 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: % Volume 2018
Table 28 Off-trade vs On-trade Sales of Soft Drinks by Category: Value 2018
Table 29 Off-trade vs On-trade Sales of Soft Drinks by Category: % Value 2018
Table 30 Off-trade Sales of Soft Drinks (RTD) by Category: Volume 2013-2018
Table 31 Off-trade Sales of Soft Drinks (RTD) by Category: % Volume Growth 2013-2018
Table 32 Off-trade Sales of Soft Drinks by Category: Value 2013-2018
Table 33 Off-trade Sales of Soft Drinks by Category: % Value Growth 2013-2018
Table 34 Total Sales of Soft Drinks by Fountain On-trade: Volume 2013-2018
Table 35 Total Sales of Soft Drinks by Fountain On-trade: % Volume Growth 2013-2018
Table 36 NBO Company Shares of Total Soft Drinks (RTD): % Volume 2014-2018
Table 37 LBN Brand Shares of Total Soft Drinks (RTD): % Volume 2015-2018
Table 38 NBO Company Shares of Off-trade Soft Drinks (RTD): % Volume 2014-2018
Table 39 LBN Brand Shares of Off-trade Soft Drinks (RTD): % Volume 2015-2018
Table 40 NBO Company Shares of Off-trade Soft Drinks: % Value 2014-2018
Table 41 LBN Brand Shares of Off-trade Soft Drinks: % Value 2015-2018
Table 42 Distribution of Off-trade Soft Drinks (as sold) by Format and Category: % Volume 2018
Table 43 Forecast Off-trade vs On-trade Sales of Soft Drinks (RTD) by Channel: Volume 2018-2023
Table 44 Forecast Off-trade vs On-trade Sales of Soft Drinks (RTD) by Channel: % Volume Growth 2018-2023
Table 45 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2018-2023
Table 46 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2018-2023
Table 47 Forecast Off-trade Sales of Soft Drinks (RTD) by Category: Volume 2018-2023
Table 48 Forecast Off-trade Sales of Soft Drinks (RTD) by Category: % Volume Growth 2018-2023
Table 49 Forecast Off-trade Sales of Soft Drinks by Category: Value 2018-2023
Table 50 Forecast Off-trade Sales of Soft Drinks by Category: % Value Growth 2018-2023
Table 51 Forecast Total Sales of Soft Drinks by Fountain On-trade: Volume 2018-2023
Table 52 Forecast Total Sales of Soft Drinks by Fountain On-trade: % Volume Growth 2018-2023

APPENDIX

Fountain sales in Saudi Arabia
Trends

SOURCES

Summary 1 Research Sources