UAE Bottled Water Market Witnessing Brisk Business: Forecast to Grow at a CAGR of 11.7% by 2027

Published | 01 January 2022

A change in consumption patterns and an increase in the demand for convenient on-the-go hydration solutions are driving the growth of the UAE bottled water market. Moreover, bottled water provides added nutrients and is also free of contaminants, making it an appealing product for consumers….

A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the UAE bottled water market was worth USD 722.1 million in the year 2020. According to the study, the market is estimated to grow at a CAGR of 11.7%, earning revenue of around USD 1,560.1 million by the end of 2027.  UAE bottled water market is growing at a high rate because of the changing consumption pattern and increasing demand for convenient on-the-go hydration solutions. Additionally, since bottled water offers taste and added nutrients and are free of impurities, consumers find it more appealing. Further, the flourishing tourism sector in the country has boosted the demand for bottled water as plastic bottles are easy to carry and are readily available at convenience stores and supermarkets/hypermarkets. However, the monopoly of certain bottled water companies on the market may be a barrier to market expansion.

Increasing Demand for Flavored Water Driving the UAE Bottled Water Market

To grab the major share in the market, bottled water manufacturers offer a wide range of products in line with the changing consumption patterns in the UAE. Among various types of products, flavored bottled water is gaining huge popularity among consumers in the UAE. There are various flavor combinations available in the market, such as lemon strawberry, cucumber, watermelon, mint, etc., to attract consumers. The increasing demand for flavored water in the UAE market is also attributed to the shift from soft and carbonated drinks, which is fueling the market growth.

Changing Climatic Structure is Driving UAE’s Bottled Water Market

The UAE has an arid climate with a very dry, hot, and humid summer and generally warm and dry winters. Because of this, the citizens need to stay hydrated at all times. One of the key factors driving the growth of the UAE’s bottled water market is the climatic conditions of the country. Bottled water is a great source of hydration. It also provides the body with necessary nutrients. Further, the ease of access to bottled water at convenience stores, offices, hospitals, retail stores, etc., during times of emergency also contributes to the growth of this market.

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UAE Bottled Water Market - By Distribution Channel

Based on the distribution channels, the UAE bottled water market is grouped into on-trade and off-trade. The off-trade segment is further classified into supermarkets/hypermarkets, convenience stores, retail stores, specialty stores, online channels, home, and office delivery, and others. Convenience stores account for the largest share of the market due to the easy availability of bottled water in this segment. The number of convenience stores is anticipated to double in the next five years, which is projected to further boost the market’s growth during the forecast period.

Impact of COVID-19 on UAE Bottled Water Market

The growth of the UAE bottled water market was negatively impacted by the sudden outbreak of the COVID-19 pandemic. The restrictions on production and supply operations and panic buying of products by consumers resulted in huge demand and supply gap, due to which the manufacturers had to face huge losses. Furthermore, the restrictions on tourism and on-trade channels, such as hotels and restaurants, etc., also directly impacted the demand for bottled water in the country. However, the market is expected to rebound from this setback in the post COVID-19-era as restrictions on tourism will be lifted, and restaurants and offices resume operation.

Competitive Landscape

The leading players in the UAE bottled water market is Agthia Group, Mai Dubai, Nestle SA, Spindrift, Masafi Inc., Hint Inc., AL Ghadeer Drinking Water LLC, Crystal Mineral Water, National Food Products Co., PepsiCo Inc., and other prominent players.

The UAE bottled water market is highly concentrated and dominated by global giants such as Nestle, Agthia, PepsiCo, etc. The market players heavily rely on advertisement and marketing strategies to create brand awareness and attract consumers. They also launch water bottles of various sizes to cater to the needs of various end-users and boost their sales. Additionally, the market players are establishing themselves as ethical brands by launching sustainable products to tap into the changing consumption pattern. Last but not least, the adoption of competitive strategies, such as partnerships, mergers & acquisitions, joint ventures, etc., is also prominent in this market.

Don’t miss the business opportunity of the UAE bottled water market. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the UAE bottled water market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the UAE bottled water market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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