Saudi Arabia Bottled Water Market - Growth, Trends, and Forecasts (2023 - 2028)

Saudi Arabia Bottled Water Market - Growth, Trends, and Forecasts (2023 - 2028)

The Saudi Arabia Bottled Water market is valued at USD 1,828.8 million in the current year and is projected to register a CAGR of 8.90% over the next five years.

A significant percentage of the hospitals and health centers in the country had water filtration systems for drinking water during the pandemic. However, due to social distancing, the patients were not allowed to use common services to prevent the virus. Owing to this, patients were kept in isolation and treated separately. Thus, they were provided with bottled water all the time, compensating to some extent for the overall demand for the market. Therefore, even during the pandemic, the bottled water market in Saudi Arabia was stable.

Over the period, the market growth is augmented by high disposable income, growing urbanization, and increasing demand for sparkling water. Such factors provide growth opportunities to global and regional bottled water manufacturers, primarily to cater to the increasing demand from institutions such as hospitals. Additionally, due to the pandemic, several countries were under lockdown.

This increased bottled water sales, 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 country's food service channels, such as hotels and restaurants, are also increasing. Therefore, to offer quality service to their tourists, they also contribute to a significant share of sales in the bottled water market.

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. According to the Ministry of Tourism Saudi Arabia data from 2021, 1,532,000 tourists stayed in hotels in Saudi Arabia. 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 users.

People in Saudi Arabia have become very health-conscious due to the prevalence of diseases like the pandemic in recent years. The major issues in Saudi Arabia include desensitization and water pollution. Saudi Arabia is a desert country that extends on the Red Sea and the Persian Gulf. Because of the deserted surroundings, water pollution happens in the region. The water provided to the country comes from the sea and groundwater but sea water is salinated so it is not drinkable and groundwater is also not drinkable in the region which is why the water bottle market is growing in the region. The tap water in the country is desalinated but it imparts a smell and unpleasant taste. The growing concern about water scarcity and contamination of tap water can also be drivers for the market. Bottled water these days contains plenty of minerals and other nutritional components. Demand for sparkling water is also increasing among people as they are replacing carbonated beverages by providing various flavors in them. Because of all these reasons consumers prefer to drink bottled water over tap water or water from other sources in Saudi Arabia.

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, development, and marketing and expanding their distribution network to maintain their position in the market to offer innovative bottled water. 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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