Michael Hussey, Dubai Office, Bord Bia – Irish Food Board

The GCC has some of the highest rates of soft drinks consumption in the world. This is partly due to a ban on alcohol consumption and is also a reflection of the region’s hot climate and a strong preference for sweetened beverages. Saudi Arabia accounts for roughly two thirds of the region’s (GCC) soft drinks sector. In 2015 total soft drinks value sales growth year-on-year was 9% with consumption of soft drinks increasing from 212 litres per capita in 2004 to 257 litres in 2014. It is forecast to reach 272 litres per capita by 2019. The soft drinks sector is by far the most important and dynamic in Saudi Arabia’s drinks industry with bottled water and carbonates together accounting for 60% of sales.

Saudi Arabia's soft drinks industry is the region's largest in volume and value terms. According to BMI research, the Saudi soft drinks market could be considered mature with per capita consumption levels comparable to those in Western Europe. Local consumers are seen as brand loyal and aspirational and they are increasingly interested in new and innovative products. This is driving the demand for non-core soft drinks segments such as energy drinks, which are expected to experience strong growth. There are also opportunities present in the low-calorie segment due high levels of obesity and diabetes and a growing concern about personal health. Bottled water sales have also seen strong growth in the past decade, much like the rest of the GCC. The market is competitive but there may be opportunities for new and innovative products that meet growing consumer needs for healthy and tasty alternatives to carbonated drinks.

For more information please contact michael.hussey@bordbia.ie