Soft Drinks - Saudi Arabia

The Soft Drinks market in Saudi Arabia has been experiencing significant growth in recent years.

Customer preferences: Saudi Arabian consumers have shown a growing preference for soft drinks, particularly carbonated beverages, as part of their daily routine. Soft drinks are often consumed as a refreshing beverage during meals or social gatherings. Additionally, the younger population in Saudi Arabia has been increasingly drawn to soft drinks as a trendy and fashionable beverage choice. This shift in consumer preferences has led to a surge in demand for soft drinks in the country.

Trends in the market: One of the key trends in the Soft Drinks market in Saudi Arabia is the increasing popularity of healthier beverage options. As consumers become more health-conscious, there has been a growing demand for low-sugar and sugar-free soft drinks. This trend is driven by a desire for healthier alternatives without compromising on taste. As a result, soft drink manufacturers have been introducing a variety of low-sugar and sugar-free options to cater to this changing consumer preference. Another trend in the market is the rising demand for flavored soft drinks. Saudi Arabian consumers have shown a preference for unique and exotic flavors, which has led to the introduction of a wide range of flavored soft drinks in the market. From fruity flavors to herbal infusions, soft drink manufacturers are constantly innovating to meet the evolving taste preferences of consumers.

Local special circumstances: Saudi Arabia has a hot and arid climate, which makes soft drinks a popular choice for hydration and refreshment. The hot weather conditions create a favorable environment for the consumption of cold beverages, and soft drinks provide a convenient and accessible option for consumers to quench their thirst. Additionally, Saudi Arabian society has a strong culture of hospitality and socializing. Soft drinks are often served to guests as a gesture of hospitality, making them an integral part of social gatherings and celebrations. This cultural tradition further contributes to the demand for soft drinks in the country.

Underlying macroeconomic factors: The Soft Drinks market in Saudi Arabia is also influenced by macroeconomic factors such as population growth, urbanization, and increasing disposable income. The country has a young and growing population, which drives the demand for soft drinks. Furthermore, the rapid urbanization in Saudi Arabia has led to an increase in the number of convenience stores and supermarkets, making soft drinks more readily available to consumers. The rising disposable income of Saudi Arabian consumers has also played a significant role in the growth of the Soft Drinks market. As disposable income increases, consumers have more purchasing power to spend on beverages, including soft drinks. This has contributed to the overall expansion of the market. In conclusion, the Soft Drinks market in Saudi Arabia has been experiencing growth due to changing customer preferences, including a demand for healthier options and flavored beverages. The local special circumstances, such as the hot climate and cultural traditions, further drive the demand for soft drinks. Additionally, macroeconomic factors such as population growth, urbanization, and increasing disposable income play a role in the market's development.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.