Report Overview

The Saudi Arabia non-alcoholic drinks market is flourishing at a high rate owing to the complete ban on alcoholic drinks due to religious purpose along with increasing launches of new products with different flavors...

Saudi Arabia Non-Alcoholic Drinks Market- Industry Trends & Forecast Report 2028

The Saudi Arabia non-alcoholic drinks market was worth USD 9.3 billion in 2021 and is further projected to reach USD 13.3 billion by the year 2028, growing at the CAGR of 5.60% in the forecast period. Non-alcoholic drinks have a very strong market in Saudi Arabia since alcoholic drinks are forbidden in the country due to religious practices in Islam. Therefore, the brands are increasingly launching new products with various flavors which are presenting lucrative growth opportunities for the market.

Non-Alcoholic Drinks - Overview

An alcohol-free or non-alcoholic drink, also known as a temperance drink, is a form of drink that is created without alcohol or with the alcohol eliminated or reduced to virtually zero. These include non-alcoholic mixed drinks (also known as "virgin cocktails"), non-alcoholic beer (sometimes known as "near beer"), and "mocktails," and are generally accessible anywhere such as convenience stores or online grocery stores. Flavored drinks and carbonated soft drinks are some of the most popular non-alcoholic drinks.

Saudi Arabia Non-Alcoholic Drinks Market Forecast and Trends

Growth Drivers

Increasing Health Consciousness Among Consumers

The market's expansion is being fueled by the health advantages associated with the consumption of non-alcoholic drinks. Drinking mineral water, fruit juices, energy drinks, and other similar beverages has been shown in several studies to reduce mental tiredness while also boosting overall brain functioning including memory and response time. Non-alcoholic drinks, when consumed in moderation, promote physical endurance, weight reduction, and focus. All of these factors contribute to the growth of the Saudi Arabia non-alcoholic drinks market.

Expanding Popularity Of Online Sales Channels

The restrictions on the distribution channels during the pandemic period provided significant space for the online sales channels to flourish. Online retailing are gradually becoming the primary source of grocery shopping, particularly among young people and working adults who find it difficult to find time to go to traditional convenience stores. Furthermore, the introduction of online grocery such as Nana Direct, Khodar and More, Noon, Amazon SA, and others, as well as the growing use of mobile wallets and online payment methods, are propelling market expansion.

Restraints

Increasing Awareness Towards Health Impact Of Non-Alcoholic Drinks

Except for certain non-alcoholic drinks such as bottled water, not every drink will have a positive impact on health upon its consumption. For instance, Caffeine and sugar are found in several energy drinks and taking more than the recommended amount might cause your blood pressure and heart rate to rise. Anxiety and sleeplessness are other possible side effects. Several fruit juices also contain preservatives that are harmful to health. These factors may act as a huge restraining factor for market growth.

Impact of COVID-19 on Saudi Arabia Non-Alcoholic Drinks Market

Saudi Arabia's non-alcoholic drinks market was initially negatively impacted by the COVID-19 pandemic outbreak. Although the demand for certain non-alcoholic drinks such as bottled water and energy drinks surged in the market, the distribution channels were completely halted. This created a huge demand and supply gap for non-alcoholic drinks from convenience stores and supermarkets. However, the market is anticipated to witness substantial growth post the lockdown upliftment as the supply for non-alcoholic drinks replenishes.

Saudi Arabia Non-Alcoholic Drinks Market - By Product Type

Based on product type, the Saudi Arabia non-alcoholic drinks market is segmented into bottled water, fruit juices & flavored drinks, carbonated soft drinks, functional/energy & sports drinks, and others. The bottled water segment accounts for the largest market share because of the climatic conditions of Saudi Arabia. Furthermore, flourishing tourism is also propelling the demand for bottled water in the country. However, functional/energy & sports drinks are anticipated to register the highest growth rate during the forecast period.

Saudi Arabia Non-Alcoholic Drinks Market - By Packaging Type

Based on packaging type, the Saudi Arabia non-alcoholic drinks market is segmented into bottles, cans, cartons, and others. The cans segment holds the largest share in the Saudi Arabia non-alcoholic drinks market. Cans are sealed, so they don't bubble and stay carbonated. Cans are commonly constructed of aluminum, which is lightweight and handy, as well as easy to recycle, making them ecologically beneficial. It also saves energy since recycling metals saves up to 95% of the energy required to produce cans from virgin ores.

Saudi Arabia Non-Alcoholic Drinks Market - By Distribution Channel

Based on the distribution channel, the Saudi Arabia non-alcoholic drinks market is segmented into supermarkets/hypermarkets, online, departmental stores, and others. The departmental store's segment accounts for the largest market share due to the availability of a diverse selection of items from various brands and tastes under one roof. During an event, consumers may readily purchase bulk supplies from these outlets. However, online stores are anticipated to register the highest growth rate during the forecast period.

Competitive Landscape

The leading market players in the Saudi Arabia non-alcoholic drinks market are Nestle Water Factory Co Ltd, Saudi Snack Food Co. Ltd, Al Aujan Holding Company, Aquat Food Industries Co. Ltd, Middle East & North Africa Beverages Manufacturing Co, Gulf Union Food Company, Danya Foods Ltd Company, Tania Water Factory, Hana Food Industries Company, Arrow Beverage Factory, Abuljadayel Beverages Inc., Al Amoudi Beverage Industries Company, Berain Water & Beverages Factory, International Refreshments Co. Ltd. (IRC), and other prominent players.

Saudi Arabia non-alcoholic drinks market is fragmented with the presence of several multinational as well as local beverage brands. The companies are increasingly launching new products with different flavors and attractive packaging. They are also focusing on improving their distribution channel to boost their product penetration in the market.

Recent Development

• In September 2021, Kin Euphorics, a non-alcoholic adult drink co-founded by American model Bella Hadid, was launched in the Middle East, including Saudi Arabia.

Scope of the Report

By Product Type

• Bottled Water
• Fruit Juices & Flavored Drinks
• Carbonated Soft drinks
• Functional/Energy & Sports Drinks
• Others

By Packaging Type

• Bottles
• Cans
• Cartons
• Others

By Distribution Channel

• Supermarkets/Hypermarkets
• Online
• Departmental Store
• Others