The adverse and uncertain economic situation that unfolded over the course of 2020 was detrimental to sales of naturally healthy beverages. Many consumers reduced spending as their incomes come under pressure due to the interruption that was seen in key sectors of the economy due to the COVID-19 pandemic.
The marketing of soft drinks was subject to strong regulation in the United Arab Emirates towards the end of the review period. The main factor to take into consideration with the introduction of selective taxes on soft drinks, which raised consumer awareness of the need to shift towards naturally healthy beverages.
Towards the end of the review period, NH 100% juice remained the main site of innovation in naturally healthy beverages. Numerous companies and brands took the opportunity to launch new products in NH 100% juice as consumers increasingly sought to reduce the sugar intake via naturally healthy beverage choices.
The forecast period is expected to see naturally healthy beverages continue to register slow sales growth as this category is already fairly mature in comparison with other categories of health and wellness beverages. Indeed, it is expected that sales will continue to decline during 2021 before a slow and steady recovery is registered over the rest of the forecast period.
Demand for NH beverages in the United Arab Emirates is expected to remain heavily focused on NH 100% juice during the forecast period. In addition, demand for NH 100% juice is expected to continue increasing, with category players expected to respond by launching a wider range of products in an effort to capture rising demand.
One of the most import trends that is expected to emerge in naturally healthy beverages during the forecast period is the emergence of naturally healthy soft drinks in a small pack sizes. This can be seen as part of the efforts of the category’s leading manufacturers to differentiate their product ranges and attract the attention of consumers.
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This report originates from Passport, our Naturally Healthy Beverages research and analysis database.
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