Excise tax of 100% as well as VAT of 5% has had an impact on consumer consumption of sports drinks with volume sales recording a strong decline. The regulation comes in conjunction with a lower appetite in consuming conventional electrolytic beverages perceived to be high in sugar.
Sports drinks also experienced a further negative impact due to alternate means of hydration increasingly being preferred by local consumers. Protein-based beverages and coconut water are being used as alternatives to sports drink to replenish and support active lifestyles.
The United Arab Emirates has one of the highest consumption rates of sugary drinks and the government has played a part in ensuring that there is consumer awareness to reduce obesity rates. There has been a rising number of gyms, fitness and wellness centres in the country.
Gatorade, Isostar and Pocari Sweat were the three leading brands in off-trade value terms within sports drinks in 2018 with a strong presence within modern grocery retailers. Familiarity supports these brands as they enjoy high brand equity.
Many brands are selling across the product categories such as powders, gels as well as sports drinks. Brands are tapping into producing the entire eco system for sports nutrition with online support on the various offerings.
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Discover the latest market trends and uncover sources of future market growth for the Sports Drinks industry in United Arab Emirates with research from Euromonitor's team of in-country analysts.
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This industry report originates from Passport, our Soft Drinks market research database.