Report Overview

UAE Bottled Water Market- Industry Trends & Forecast Report 2027

UAE bottled water market was worth USD 722.1 million in 2020 and is further projected to reach USD 1,560.1 million by the year 2027, growing at a CAGR of 11.7% in the forecast period (2021-2027). The market is growing at a high rate because of the increasing urbanization and changing consumption patterns. Additionally, the growing demand for bottled water in on-trade spaces such as offices, hotels, restaurants, etc. is also powering the UAE bottled water market. Furthermore, the flourishing tourism sector of the kingdom and increasing demand for mineral and flavored bottled water is projected to drive the market growth during the forecast period.

Source: BlueWeave Consulting

UAE Bottled Water Market- Overview

Bottled water is packaged drinking water usually packaged in plastic or glass water bottles. They come in various sizes, from 250 ml single-serving bottles to large carboys for water coolers. Bottled water is often used as an alternative to tap water usually fetched from various sources, such as groundwater or a public water supply. The UAE bottled water market is driven in part by the demand for fortified, flavored, and functional water. Numerous bottled water brands in the UAE are seeking innovative solutions to drive the market as the functional water segment is poised for a major growth spurt due to the category's broad distribution channels.

UAE Bottled Water Market Forecast and Trends

Growth Drivers

High Health Consciousness Among Consumers

The increasing health consciousness among consumers is emerging as a major driving factor for the UAE bottled water market. Bottled water is considered safer compared to ground and tap water. They also contain high nutritional value compared to other drinks. Bottled mineral water also helps in lowering blood pressure and supporting heart health. Due to such health benefits, the demand for bottled water is projected to surge, especially among the younger demographic across the UAE. Also, UAE Food Safety Authorities regulate bottled water to ensure consumer rights are protected, which further propels the market’s growth.

The UAE’s Flourishing Tourism Sector

Tourism is one of the most important industries in the UAE, generating jobs and boosting GDP. UAE ranks 24^th in the world in terms of tourism. With the expanding tourism sector, the demand for bottled water is projected to surge during the forecast period as tourists prefer bottled water over normal tap water. Consequently, the growth of the bottled water market in the UAE is expected to be fueled by the increasing number of tourists in airports, hotels, restaurants, cafes, etc.

Restraints

Monopoly of Multinational Corporations

The presence of multinational bottled water brands, such as Masafi, Nestle, PepsiCo., Mai Dubai, etc., makes the UAE bottled water market highly monopolistic, which in turn restricts the entry of new players in the UAE bottled water market. With only giants dominating the market, they have the power to control the price, which puts the consumers at loss. Additionally, the monopoly in the bottled water market in UAE also limits the options for consumers, resulting in a weaker market growth.

Impact of COVID-19 on UAE Bottled Water Market

The sudden outbreak of the COVID-19 pandemic resulted in strict lockdown measures, which negatively impacted the overall economic growth of the UAE. As a result of consumers' panic buying, the UAE’s bottled water market saw a shortage of stocks in its off-trade channels. This resulted in a huge demand and supply gap during the COVID-19 period, which sabotaged the overall bottled water market of the kingdom. The shortage of workforce in the production plants and restrictions on supply chains are estimated to restrict the UAE’s bottled water market growth in the post-COVID-19 period as well.

UAE Bottled Water Market - By Product Type

Based on product types, the UAE bottled water market is segmented into spring water, purified water, mineral water, distilled water, sparkling water, and others. Among these, the mineral water segment accounts for the largest market share because of the presence of several brands including Mai Dubai, Dubai Refreshment Company, Oasis Pure Water, etc. The high concentration of nutritional elements in mineral water that offers numerous health benefits, such as supporting bone and digestive health, enhancing circulation, reducing blood pressure, etc., is contributing to the growth of the mineral water segment.

UAE Bottled Water Market - By Distribution Channel

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

UAE Bottled Water Market - Competitive Landscape

The leading players in the UAE bottled water market are 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 market is highly concentrated and dominated by global giants such as Nestle, Agthia, PepsiCo, etc. For creating brand awareness and attracting consumers, companies heavily rely on advertising and marketing strategies. Also, they launch water bottles of various sizes to cater to the needs of various end-users. Additionally, these companies are establishing themselves as ethical brands by launching sustainable products to take advantage of changing consumption patterns. Furthermore, market players tend to adopt strategies such as partnerships, mergers, acquisitions, joint ventures, etc., to stay competitive in the market.

Recent Development

• In October 2021, Masafi, a leading drinking water company, announced the launch of SOURCE, the world’s first renewable and sustainable bottled water at Expo 2020 Dubai. It is expected to enter the global retail stores by mid-2022.

Scope of the Report:

By Product Type

• Spring Water
• Purified Water
• Mineral Water
• Distilled Water
• Sparkling Water
• Others

By Distribution Channel

• On-Trade
• Off-Trade

1. Supermarkets/Hypermarkets
2. Convenience Stores
3. Retail Stores
4. Speciality Store
5. Online Channel
6. Home and Office Delivery
7. Others

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Flourishing Tourism Sector in the UAE
         2. High Health Consciousness Among Consumers
      2. Market Restraints
         1. Monopoly of Multinational Corporations
      3. Market Challenges
         1. Negative Impact of the COVID-19 Pandemic
      4. Market Opportunity
         1. Increasing Demand for Flavored Water
         2. Changing Climatic Structure of the UAE
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. The UAE Bottled Water Market Overview
   1. Market Size & Forecast by Value, 2017-2027
   2. Market Size and Forecast, By Segment
      1. By Product Type
         1. Spring Water
         2. Purified Water
         3. Mineral Water
         4. Distilled Water
         5. Sparkling Water
         6. Others
      2. By Distribution Channel
         1. On-Trade
         2. Off-Trade
            1. Supermarkets/Hypermarkets
            2. Convenience Stores
            3. Retail Stores
            4. Speciality Store
            5. Online Channel
            6. Home and Office Delivery
            7. Others
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis (2020)
   3. Competitive Benchmarking by Operating Parameters
7. Impact of COVID-19 on The UAE Bottled Water Market
8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. Agthia Group
   2. Mai Dubai
   3. Nestle SA
   4. Spindrift
   5. Masafi Inc.
   6. Hint Inc.
   7. AL Ghadeer Drinking Water LLC
   8. Crystal Mineral Water
   9. National Food Products Co.
   10. PepsiCo Inc.
   11. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1: The UAE Bottled Water Market Segmentation

Figure 2: The UAE Bottled Water Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2020

Figure 4: The UAE Bottled Water Market Size, By Value (USD Million), 2017-2027

Figure 5: The UAE Bottled Water Market Share (%), By Product Type, By Value, 2017-2027

Figure 6: The UAE Bottled Water Market Share (%), By Distribution Channel, By Value, 2017-2027

List of Tables

Table 1: The UAE Bottled Water Market Size, By Product Type, By Value, 2017-2027

Table 2: The UAE Bottled Water Market Size, By Distribution Channel, By Value (USD Million), 2017-2027

Table 3: Agthia Group Financial Analysis

Table 4: Agthia Group Business Overview

Table 5: Mai Dubai Financial Analysis

Table 6: Mai Dubai Business Overview

Table 7: Nestle SA Financial Analysis

Table 8: Nestle SA Business Overview

Table 9: Spindrift Financial Analysis

Table 10: Spindrift Business Overview

Table 11: Masafi Inc. Financial Analysis

Table 12: Masafi Inc. Business Overview

Table 13: Hint Inc. Financial Analysis

Table 14: Hint Inc. Business Overview

Table 15: AL Ghadeer Drinking Water LLC Financial Analysis

Table 16: AL Ghadeer Drinking Water LLC Business Overview

Table 17: Crystal Mineral Water Financial Analysis

Table 18: Crystal Mineral Water Business Overview

Table 19: National Food Products Co. Financial Analysis

Table 20: National Food Products Co. Business Overview

Table 21: PepsiCo Inc. Financial Analysis

Table 22: PepsiCo Inc. Business Overview