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

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

The Saudi Arabia Bottled Water market is 1,828.8 million in 2021 and is projected to register a CAGR of 8.90% during the forecast period (2022-2026).

COVID-19 resulted in the decline of nearly a third of the global market cap. In Saudi Arabia, authorities enforced a 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 in isolation and treated separately. Thus, they are provided with bottled water all the time which compensated to some extent in the overall bottled water market demand.

Over the period, the market growth is augmented by high disposable income, growing urbanization, and increasing demand for sparkling water. Such factors provide various growth opportunities to both global and regional bottled water manufacturers, primarily to cater to the increasing demand from institutions such as hospitals. Additionally, due to pandemic, 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 significant share of sales in the bottled water market.

Key Market TrendsGrowth in Tourism Drives the Sales of Bottled Water

Tourism is an important component of Saudi Arabia's economic growth, where both religious and non-religious activities have significant potential for expansion. With the rising influx of both local and foreign tourists 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 foodservice 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 coronavirus 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% in international arrivals, as governments across the world have eased the restrictions. Thus, the growth in tourism in the country is expected to have a significant impact on the market demand.

Retail Channel Holds Largest Share

The major retail chains through which bottled water are sold in the country include supermarkets/hypermarkets, 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 the rising number of hypermarkets and supermarkets, add to the sales of these retail channels 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 in February 2020, and also plans to open 100 new stores across the country in the future.

Convenience stores in Saudi Arabia are 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 Arabia.

Competitive Landscape

The Saudi Arabian bottled water market is highly competitive 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 water wells in Saudi Arabia. The prominent players in the market are Hana Food Industries Company (Hana Water), Bin Zomah Group Trading & Mfg (Safa), Health Water Bottling Co. (Nova Water), Pepsi Co., and Aloyoun Water Factory Inc.

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1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
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 MARKET SEGMENTATION
5.1 By Type
5.1.1 Still Water
5.1.2 Sparkling Water
5.2 By Distribution Channel
5.2.1 Retail Channels
5.2.1.1 Supermarkets/hypermarkets
5.2.1.2 Convenience/grocery Stores
5.2.1.3 Other Retail Channels
5.2.2 Home and Office Delivery
5.2.3 Foodservice
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 COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Aloyoun Water Factory Inc.
6.3.2 Agthia Group PJSC
6.3.3 Maeen Water
6.3.4 Hana Food Industries Company (Hana Water)
6.3.5 Health Water Bottling Co. Ltd. (Nova Water)
6.3.6 PepsiCo Inc.
6.3.7 Bin Zomah International Trading & Development Company Limited (Safa)
6.3.8 The Red Sea Development Company
6.3.9 Ojen Water Company
6.3.10 Nord Water
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
8 IMPACT OF COVID-19 ON THE MARKET

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