Saudi Arabia Non-Alcoholic Drinks Market to Surpass USD 13.3 Billion by 2028

Saudi Arabia Non-Alcoholic Drinks Market
Saudi Arabia Non-Alcoholic Drinks Market

A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the Saudi Arabia non-alcoholic drinks market was worth USD 9.3 billion in the year 2021. It is estimated to grow at a CAGR of 5.60%, earning revenue of around USD 13.3 billion by the end of 2028. The market is flourishing at a high rate because alcoholic beverages are prohibited in Saudi Arabia owing to Islamic religious traditions, non-alcoholic beverages have a sizable market. As a result, businesses are progressively developing new products in a variety of flavors, providing the industry with significant growth potential.

Surging Launches Of New Products Is Driving The Saudi Arabia Non-Alcoholic Drinks Market Growth

As the market for non-alcoholic beverages grows, companies are continually developing and launching new products to entice customers and boost their sales. They are concentrating on offering a variety of flavors and ingredients to appeal to a variety of consumer tastes. The firms are also simplifying their distribution systems in order to improve product penetration in new and potential areas, which is expected to propel the non-alcoholic drinks market in Saudi Arabia to new heights.

Rising Demand From On-Trade Channels Is Propelling The Saudi Arabia Non-Alcoholic Drinks Market Growth

Non-Alcoholic Drinks are seeing strong demand in Saudi Arabia’s on-trade channels. Due to the country’s fast urbanization and economic diversification, the number of restaurants, hotels, airports, offices, and other businesses is rapidly expanding. Furthermore, Saudi Arabia’s booming tourist industry is affecting the growing number of on-trade channels. In the projected period, this is expected to raise demand for Saudi Arabia Non-Alcoholic Drinks.

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Saudi Arabia Non-Alcoholic Drinks Market – By Distribution Channel

Based on the distribution channel, the Saudi Arabia non-alcoholic drinks market is segmented into supermarkets/hypermarkets, online, departmental stores, and others. The departmental store’s segment accounts for the largest market share due to the availability of a diverse selection of items from various brands and tastes under one roof. During an event, consumers may readily purchase bulk supplies from these outlets. However, online stores are anticipated to register the highest growth rate during the forecast period.

Impact of COVID-19 on Saudi Arabia Non-Alcoholic Drinks Market

The COVID-19 epidemic had a detrimental influence on the non-alcoholic beverages sector in Saudi Arabia at first. Despite the fact that demand for non-alcoholic beverages such as bottled water and energy drinks increased, distribution routes were entirely shut down. This resulted in a significant demand and supply mismatch for non-alcoholic beverages in convenience shops and supermarkets. However, as the supply of non-alcoholic drinks replenishes, the market is expected to rise significantly following the lifting of the lockdown.

Competitive Landscape

The leading market players in the Saudi Arabia non-alcoholic drinks market are Nestle Water Factory Co Ltd, Saudi Snack Food Co. Ltd, Al Aujan Holding Company, Aquat Food Industries Co. Ltd, Middle East & North Africa Beverages Manufacturing Co, Gulf Union Food Company, Danya Foods Ltd Company, Tania Water Factory, Hana Food Industries Company, Arrow Beverage Factory, Abuljadayel Beverages Inc., Al Amoudi Beverage Industries Company, Berain Water & Beverages Factory, International Refreshments Co. Ltd. (IRC), and other prominent players.

Saudi Arabia non-alcoholic drinks market is fragmented with the presence of several multinational as well as local beverage brands. The companies are increasingly launching new products with different flavors and attractive packaging. They are also focusing on improving their distribution channel to boost their product penetration in the market.

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