Soft drinks in 2024: The big picture
The soft drinks market in Saudi Arabia is poised for continued healthy growth in 2024, with strong expansion expected in both volume and current value terms. This trend reflects the broader economic boom in Saudi Arabia, which is seeing increasing diversification under the country’s Vision 2030 initiative.
2024 key trends
As health and wellness trends continue to gain momentum in Saudi Arabia, consumers are increasingly gravitating towards “better-for-you” beverage options, with bottled water and low-sugar alternatives seeing a rise in demand. In response to this shift, soft drink manufacturers are introducing new products that emphasise health-conscious positioning, with some opting to reformulate existing products to reduce sugar content and avoid the impact of the sugar tax.
Competitive landscape
PepsiCo Inc remains the overall leader in soft drinks in Saudi Arabia in retail value terms. The player’s products are distributed through local bottlers and franchise partners.
Retailing developments
Supermarkets, hypermarkets, and small local grocers remain the dominant distribution channels for soft drinks in Saudi Arabia, supported by ongoing expansion, promotional campaigns, and participation in food and drink festivals. For instance, LuLu Hypermarkets has been active in campaigns like the “Year of Saudi Coffee” and the “Flavours of Arabia” festival, driving visibility and foot traffic for soft drink brands.
Foodservice vs retail split
In 2024, foodservice sales are outpacing retail in terms of volume growth across most soft drink categories, driven by consumers returning to busier lifestyles. With less time spent at home, many consumers are now purchasing soft drinks at cafés and foodservice outlets, which have become key social hubs.
What next for soft drinks?
Saudi Arabia’s focus on economic diversification under Vision 2030 is expected to support continued growth in the soft drinks market over the forecast period. The Kingdom’s efforts to develop new attractions, cultural festivals, and international conferences, coupled with easier visa processes, are enhancing Saudi Arabia’s appeal as a global travel destination.
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Overview:
Understand the latest market trends and future growth opportunities for the Soft Drinks industry in Saudi Arabia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Bottled Water
- Carbonates
- Concentrates
- Juice
- RTD Coffee
- RTD Tea
- Energy Drinks
- Sports Drinks
- Asian Speciality Drinks
If you're in the Soft Drinks industry in Saudi Arabia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Soft Drinks in Saudi Arabia report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Soft Drinks in Saudi Arabia?
- To what extent are health considerations impacting consumption of Soft Drinks in Saudi Arabia?
- How are changing social attitudes and legislation (eg sugar tax) reshaping demand and consumption?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Soft Drinks in Saudi Arabia?
- Which are the leading brands in Soft Drinks in Saudi Arabia?
- What potential exists for multinational or domestic soft drinks companies to expand in Saudi Arabia?
- How are products distributed in Soft Drinks in Saudi Arabia?
- How is the rise of e-commerce changing the retail and competitive landscape?
- How have home seclusion and social distancing measures following COVID-19 impacted sales of Soft Drinks?
- How are sustainability issues, such as environmentally-friendly packaging, legislation on recyclability, or the amount of plastic in bottles, impacting the soft drinks industry?
- Where is future growth expected to be most dynamic?
Soft Drinks in Saudi Arabia
Soft drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for soft drinks?
Fountain sales in Saudi Arabia
Trends
DISCLAIMER
Bottled Water in Saudi Arabia
KEY DATA FINDINGS
Strong demand for bottle water, driven by hot climate and growing awareness of importance of adequate hydration
Nova continues to hold the leading position
Bottled water companies continue to focus on direct-to-consumer channels
Economic diversification will support further growth in bottled water sales
Water companies will look to go public
Consumers will continue to favour bottled water over other beverages
Carbonates in Saudi Arabia
KEY DATA FINDINGS
High temperatures continue to drive growth
PepsiCo continues to lead
Local players on the rise
Future growth in carbonates will be driven tourism amid adoption of healthier lifestyles
Discounters and warehouse outlets will continue to expand
Brands will focus their attention on local tastes
Concentrates in Saudi Arabia
KEY DATA FINDINGS
Affordability ensures continued popularity of concentrates, although sales continue to decline
Tang and Vimto continue to dominate
Supermarkets and hypermarkets dominate distribution while e-commerce sees strong gains
Impact of sugar tax and growing levels of health consciousness will impact market for concentrates
Players will invest in innovation in attempt to drive growth
Growth of discounters and warehouse outlets
Concentrates Conversions
Juice in Saudi Arabia
KEY DATA FINDINGS
Growing health-consciousness leads to shift towards nectars
Fresh juice continues to challenge packaged juice consumption
Almarai maintains its leadership amid rising competition
Hot Weather, tourism and growing awareness of the importance of hydration will support future growth
Juice will remain focus of new product development, with anticipated growth of reduced-sugar variants
Fresh juice will continue to compete with packaged options
RTD Coffee in Saudi Arabia
KEY DATA FINDINGS
Saudis deep-rooted love for coffee fuels demand
Starbucks remains key driving force in the market
Almarai extends its offerings
High protein RTD coffee is set to gain traction
Nestlé looks to expand its footprint while local players are also on the rise
Forecourt retailers will benefit from increased sales to weary drivers, while hypermarket format will continue to expand
RTD Tea in Saudi Arabia
KEY DATA FINDINGS
High summer temperatures drive growth
Leader Lipton shapes evolution of the market
New players enter the market
Further innovation expected, with focus on reduced sugar formulations
Sustained focus on Gen Z
Local players will continue to emerge, boosting competition in the market
Energy Drinks in Saudi Arabia
KEY DATA FINDINGS
Signs of recovery for energy, driven by active lifestyle trends, the launch of healthier variants and Gen Z’s affinity for these products
Code Red continues to dominate sales
Energy drinks brands extend their presence through strategic partnerships and sponsorship deals
Market for energy drinks will be shaped by impact of tourism, sporting events and health initiatives
Other caffeinated beverages could threaten sales
Local players will continue to compete with international brands
Sports Drinks in Saudi Arabia
KEY DATA FINDINGS
Sports drinks fail to benefit from government push towards healthier lifestyles
PepsiCo’s Gatorade maintains its dominance
Modern trade continues to lead distribution
Market opportunities exist for sports drinks, alongside growing levels of health consciousness
Probable emergence of new competitors
Rise of e-commerce will boost accessibility
The following categories and subcategories are included:
Soft Drinks
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- Carbonated Natural Mineral Bottled Water
- Carbonated Spring Bottled Water
- Carbonated Purified Bottled Water
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- Still Flavoured Bottled Water
- Sparkling Flavoured Bottled Water
- Functional Bottled Water
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- Still Natural Mineral Bottled Water
- Still Spring Bottled Water
- Still Purified Bottled Water
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- Regular Carbonates
- Reduced Sugar Carbonates
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- Regular Cola Carbonates
- Reduced Sugar Cola Carbonates
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- Regular Non-Cola Carbonates
- Reduced Sugar Non-Cola Carbonates
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- Regular Lemonade/Lime
- Reduced Sugar Lemonade/Lime
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- Regular Tonic Water/Mixers/Other Bitters
- Reduced Sugar Tonic Water/Mixers/Other Bitters
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- Regular Orange Carbonates
- Reduced Sugar Orange Carbonates
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- Regular Other Non-Cola Carbonates
- Reduced Sugar Other Non-Cola Carbonates
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- Liquid Concentrates
- Powder Concentrates
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- Not from Concentrate 100% Juice
- Reconstituted 100% Juice
- Coconut and Other Plant Waters
- Juice Drinks (up to 24% Juice)
- Nectars
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- RTD Coffee
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- Carbonated RTD Tea and Kombucha
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- Regular Still RTD Tea
- Reduced Sugar Still RTD Tea
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- Regular Energy Drinks
- Reduced Sugar Energy Drinks
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- Regular Sports Drinks
- Reduced Sugar Sports Drinks
- Asian Speciality Drinks
Soft Drinks
This is the aggregation of the following categories; Carbonates, Fruit/vegetable juice, Bottled water, Functional drinks, Concentrates, RTD tea, RTD coffee and Asian speciality drinks.
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This report originates from Passport, our Soft Drinks research and analysis database.
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