Fortified/Functional Beverages in Saudi Arabia

2020 IMPACT

Demand for immunity-boosting products drives spike in demand for FF fruit vegetable juice

FF beverages returned to growth in 2020 in current value terms, largely driven by a spike in demand for FF fruit/vegetable juice. With the outbreak of COVID-19 many people went in search of healthier drinks options, and in particular products which could boost their immune system.

Consumers favour refreshing FF soft drinks over FF hot drinks in 2020

While FF soft drinks witnessed a turnaround in fortunes in 2020, driven by the spike in demand for FF fruit/vegetable juice, the opposite was true for FF hot drinks. While sales of FF hot drinks continued to grow in current value terms in 2020, growth was nonetheless slower than in 2019 with consumers favouring healthier and more refreshing drinks such as fruit/vegetable juice and bottled water, which are better suited to the hot, dry climate.

Prices rise due to new taxes and increased operating costs

The average unit price of FF beverages rose in 2020 which served to put the brakes on volume growth, with incomes coming under pressure due to COVID-19. Some products such as FF energy drinks were hit by the 50% excise tax that was imposed on sugary beverages as from 1 December 2019.

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