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Saudi Arabia Bottled Water Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 90 Pages
  • June 2022
  • Region: Saudi Arabia
  • Mordor Intelligence
  • ID: 5176357
The Saudi Arabian bottled water market is projected to register a CAGR of 8.82% during the forecast period (2022-2027).

The COVID-19 resulted in the decline of nearly a third of the global market cap. In Saudi Arabia, authorities enforced complete lockdown in Riyadh along with Mecca and Medina, as a part of restrictions against the virus. A significant percentage of the hospitals and health centers in the country have water filtration systems for drinking water. However, due to the emergence of COVID-19 as a pandemic, social distancing is one of the major factors to prevent the spread of the virus. Owing to this, patients are kept under isolation and treated seperately. Thus, they are provided with bottled water all the time.

Such factors provide various growth opportunities to both global and regional bottled water manufacturers, primarily to cater the increasing demand from institutions such as hospitals. Additionally, due to this outbreak, several countries are under lockdown. This increased the sales of bottled water, primarily in the home delivery channel. Furthermore, government initiatives for personal hygiene are expected to drive the demand for bottled water.

The Saudi Arabian bottled water market witnessed significant growth, due to the rising tourism industry. Moreover, the foodservice channels, such as hotels and restaurants, are also increasing in the country. Therefore, to offer quality service to their tourists, they are also contributing to the high share of sales in the bottled water market.

Key Market Trends

Growth in Tourism Drives the Sales of Bottled Water

Tourism is an important component of the Saudi Arabian economy growth, where both religious and non-religious have significant potential for expansion. With the rising influx of both local and foreign tourist in tourist centers, it is expected to increase the consumption of treated water, i.e. bottled water, in the country. Due to the increasing tourism in the country, the food service channels, such as hotels and restaurants, are increasing in Saudi Arabia. Therefore, to offer quality service to their tourist, they are also contributing to the high share of sales in bottled water, primarily from the still bottled water segment. Owing to significant growth in the tourism industry, companies manufacturing bottled water in Saudi Arabia are developing and marketing various sizes of bottled water, which can be conveniently carried by the users.

In 2019, Saudi Arabia received more than 16 million inbound visitors from around the world. However the country's tourism sector witnessed a massive decline in inbound international visitors in 2020 with only 5.49 million international tourist arrivals due to the corona virus pandemic. The sharp decline represents a loss of over 10 million international arrivals compared to 2019. However in 2021, there is an increase of 37.5% internatioanal arrivals, as governments across the world have eased the restrictions.

Retail Channel Holds Largest Share

The major retail chains through which bottled water are sold in the country include supermarkets, convenience stores, vending machines, and online channels. Owing to a huge retail space catering to a wide variety of preferences, supermarkets/hypermarkets are among the dominant channels for the sales of bottled water. Factors, such as business expansion and rising number of hypermarkets and supermarkets, add to the sales of these retail formats and significantly contribute to the bottled water market. Due to the growing sales from these stores, various supermarkets, operating in the region, are focusing on expanding their stores, in order to capture a larger consumer base. For instance, Manuel Market, a jeddah- based supermarket retailer, opened its first branch on February 26 in 2020, and also plans to open 100 new stores across the country in future.

Convienience stores in Saudi Arabia is a mix of players, with each player holding a different range of retail expertise and targetting different consumer needs. Online retailers, such as Noon and Soug have launched grocery services, including bottled water in Saudi.

Competitive Landscape

The Saudi Arabian bottled water market is highly fragmented with the presence of both global and regional players. Furthermore, companies are increasing their investments in research and development and marketing and expanding their distribution network to maintain their position in the market and offer innovative bottled water. For instance, In January 2022, Pure Beverage Industry recently launched IVAL, produced from underground waterwells in Saudi Arabia. The prominent players in the market are Nestle SA, Agthia Group PJSC, Hana Water Company, and Maeen Water.

Additional Benefits:

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 By Type
5.1.1 Still Water
5.1.2 Sparkling Water
5.2 By Distribution Channel
5.2.1 Retail Channels
5.2.2 Home and Office Delivery
5.2.3 Food Service
5.3 By Packaging Size
5.3.1 Less Than 330 ml
5.3.2 331 ml - 500 ml
5.3.3 501 ml - 1000 ml
5.3.4 1001 ml - 2000 ml
5.3.5 2001 ml - 5000 ml
5.3.6 More Than 5001 ml
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 Nestle SA
6.4.2 Agthia Group PJSC
6.4.3 Maeen Water
6.4.4 Hana Water Company
6.4.5 Health Water Bottling Co. Ltd
6.4.6 PepsiCo Inc.
6.4.7 Pure Beverages Industry Co.
6.4.8 The Red Sea Development Company
6.4.9 Ojen Water Company
6.4.10 Nord Water
6.4.11 Highland Spring Limited

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Nestle SA
  • Agthia Group PJSC
  • Maeen Water
  • Hana Water Company
  • Health Water Bottling Co. Ltd
  • PepsiCo Inc.
  • Pure Beverages Industry Co.
  • The Red Sea Development Company
  • Ojen Water Company
  • Nord Water
  • Highland Spring Limited