Other Hot Drinks in Saudi Arabia

2020 IMPACT

Younger consumers staying at home lead to strong volume and current value growth in other hot drinks in 2020

In 2020, total volume and value sales of other hot drinks recorded positive growth, thanks to a large consumer base consisting of young adults and children, many more of whom were required to stay at home during the lockdown measures implemented by the Saudi government to contain the COVID-19 virus. According to industry sources, 60% of the local population is under the age of 30, with other hot drinks now being considered staple products that are consumed mainly at breakfast time or as a quick snack during the day.

Other hot drinks weather the storm of 2020 as food delivery options become available

On-trade volume in other hot drinks was relatively unaffected by the COVID-19 pandemic in 2020, since many of the options in this category are offered as part of foodservice combo meals and were still readily available through e-commerce food delivery platforms. In addition, foodservice outlets purchased stocks of chocolate-based flavoured powder drinks from off-trade retail grocery channels, thereby offsetting some of the impact.

The landscape remains stable for other hot drinks in 2020, with little change in prices or player share

In 2020, average unit prices of other hot drinks remained relatively stable, as there were little or no supply or distribution disruptions resulting from the impact of the COVID-19 pandemic. The leading player in chocolate-based flavoured powder drinks and malt-based drinks, Nestlé SA, benefits from a strong, stable national and regional network, and stocks of its Nesquik and Milo brands remained widely available across retail grocery channels.

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