Soft Drinks industry header
Insight

Saudi Soft Drinks Market Continues to Fizz

Soft Drinks Sector

By volume, Saudi Arabia’s soft drinks industry accounts for about two thirds of the GCC region’s soft drinks sector. The soft drinks sector is divided into the cold drinks segment – fruit juice, dairy drinks, bottled water and carbonated beverages – and the hot drinks segment, dominated by tea and coffee.

In per capita terms, consumption of soft drinks has increased from 217 litres in 2004 to more than 250 litres in 2014, over which period the industry grew from $5.5 billion to $8.5 billion. Bottled water and carbonates make up 80 percent of sales.

Saudi Market

The Saudi market has a number of characteristics that are of particular interest to international investors. In most markets, the soft drinks sector faces stiff competition from the alcoholic drinks sector, which is not a factor in the KSA where alcohol is prohibited. A second factor is the year-round hot climate in Saudi Arabia, where people have to rehydrate regularly. A third factor is a large and growing Saudi population, which at 29 million people makes it the largest market in the GCC, with young people making up more than half of the population.

Soft drinks industry

The soft drinks industry in Saudi Arabia presents a unique landscape, as it holds great growth potential despite the pressure of regulatory changes and unique cultural preferences. At Farrelly Mitchell, we hold deep insights into the Saudi food and beverage landscape. Our consultants boast decades of experience working with food and agribusinesses in Saudi Arabia, supporting mergers & acquisitions, operational improvement, market intelligence & insights, and much more.

We support both public and private sector clients throughout the agrifood value chain, ensuring that our clients achieve sustainable growth and commercial prosperity in the face of market and regulatory challenges. To leverage our expertise and gain a competitive edge, contact us today.

Download our Food & beverage Insight

Saudi Soft Drinks Market Continues to Fizz

Author

sean@initiate.ie

Partner (Saudi Arabia)
Trending insights

✎ Subscribe today

Stay up to date with the latest agribusiness publications.

More insights

Blog
7 min read
  • CEA
  • Agtech
Vertical farming systems promise to make massive changes to global food production, however challenges remain for investors and operators. . . .
Blog
6 min read
Our agribusiness expert discuss how agribusiness marketing strategies can drive sustainability and meet consumer demand for ethical, eco-friendly, and local . . .

Subscribe to our newsletter

Receive the latest updates from the agribusiness world, including fresh insights and more, directly in your inbox.

Get in touch

Our team are ready to help you on the pathway to achieving your goals in food or agribusiness.

This form collects your name, email address and contact number so that Farrelly Mitchell can communicate with you and provide assistance. Please check our privacy policy to see how we protect and manage your submitted data.

Speak with our food & agribusiness experts

Want to call us directly? We’d love to hear from you.
Here’s how you can reach us.
Office Location
Jarir Plaza Building, Suite 106, King Abdullah Road, Al Hamra District, Riyadh, 12211-3857, Kingdom of Saudi Arabia