Middle East and Africa Ready To Drink Beverages Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Middle East and Africa Ready To Drink Beverages Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Middle East and African Ready to Drink Beverages Market is projected to register a CAGR of 8.3% during the forecast period.

Ready-to-drink beverages are gaining popularity in the region owing to their convenience, affordability, and wide availability of products. This helps to enhance the sales performance of ready-to-drink beverages. Healthy drinking has emerged as a key influence in the food and beverage sector. RTD energy drinks with less sugar and natural ingredients are anticipated to rise in popularity and keep capturing the interest of more consumers inclined toward health and fitness. Additionally, key brands in the region are experimenting with their product lines to fulfill the evolving taste and flavor preferences of consumers. For instance, in December 2021, Pepsico launched its Rockstar RTD energy drink, featuring a formula of Vitamin B, ginseng, and taurine in the UAE market.

Furthermore, the growing interest in healthy diets for achieving and maintaining weight loss signifies a huge potential for RTD fruit and vegetable juice. Alongside this, there is a rising demand for Halal-certified beverages as a certain section of the population in the region prefer processed food that comprises only ethically sourced ingredients.

There is a huge demand for organic RTD beverages made from plant-based protein as consumers prefer to drink healthy and organic-certified beverages in the region. The demand for plant-based ready to drink beverages, such as oat and soy milk yogurt drinks, has been steady due to the nutrients in them. Further, the growing popularity of clean-label RTD beverages has increased to a broader demographic, among people from different generations and lifestyles looking for convenient, high-quality nourishment that fits into their daily routines. Key brands are also capturing the trend by offering new products in the clean-label and organic categories. For instance, in January 2021, Koita, a UAE-based dairy company, declared the launch of new organic almond and coconut RTD in the United Arab Emirates, along with other countries. Further, the growing prevalence of lifestyle diseases, such as diabetes, obesity, and cardiovascular diseases, among young consumers is expected to boost the demand for plant-based and low-calorie ready to drink beverages.

In Saudi Arabia, ready to drink (RTD) coffee, functional beverages, and milk-based drink have been gaining a deeper foothold as young consumers are increasingly preferring convenience snacking. Further, unsweetened ready to drink functional beverages and fruit juices are becoming more popular as customers attempt to eliminate the excess calories brought on by added sugar. Thus, leading brands have come up with a different variety of RTD drinks, such as sugar-free and low-calorie RTD drinks, in the market. For instance, in March 2020, Dubai Energy Drink debuted its line of energy drinks in United States, Nigeria, and the United Arab Emirates. These beverages are reasonably-priced and stevia-based sugar-free alternatives that have no calories. Additionally, growing participation in fitness activities and leisure sports is estimated to push the demand for energy drinks and protein-based RTD beverages. For instance, according to the new findings revealed in July 2022 through a consumer survey conducted by Saudi Arabia’s General Authority for Statistics, 48.2% of people across the country practice some physical and sporting activity for at least 30 minutes a week.

The Middle East and African ready to drink beverages market is fragmented, with regional and international players offering a wide range of ready to drink tea, coffee, and energy drinks. These companies are trying to maintain their dominance in the market. The major players operating in the ready to drink beverages market are Nestle SA, PepsiCo, Danone SA, The Coca-Cola Company, and Almarai, among others. Several regional players are focusing on expanding their RTD product range, opening new facilities for market penetration in the region, and strengthening their hold over online and offline retail stores. Further, leading companies are increasingly launching innovative RTD beverages and indulging in marketing campaigns to target potential consumers. For instance, in May 2022, SADAFCO declared the launch of a plant-based beverage called SAUDIA Oat Milk in the UAE market.

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