Market Trends of Saudi Arabia Bottled Water Industry
Growth in Tourism Drives the Sales of Still Water in Saudi Arabia
Tourism is an important component of Saudi Arabia's economic development, offering vast potential for both religious and non-religious activities. The increasing influx of local and foreign tourists, particularly in key tourist destinations, is driving the demand for treated water, specifically still water, across the country. This trend is supported by the expansion of foodservice channels like hotels and restaurants, which strive to provide quality service to visitors, consequently boosting sales in the still water segment. Saudi Arabia's tourism sector, contributing 4% to the GDP, is experiencing significant growth, spurred by initiatives to enhance it.
The country hosts one of the world's largest annual pilgrimages, attracting millions of Muslim tourists globally. The construction of new restaurants and hotels, driven by government efforts and the country's hot and arid climate, is poised further to stimulate the distribution of still bottled water within these channels, driving segmental growth. According to Bahrain News Agency, in 2023, around 106.2 million people visited Saudi Arabia. Owing to significant growth in the tourism sector, companies manufacturing bottled water in Saudi Arabia are developing and marketing various sizes that can be conveniently carried by users.
Sales Through Retail Channels are Mostly Driven by Health Consciousness Among Consumers
Health consciousness among consumers in Saudi Arabia has significantly increased in recent years, influenced by a growing awareness of the importance of a healthy lifestyle. This trend is driven by various factors, including government initiatives to combat obesity and related health issues, widespread access to information through digital media, and the influence of social media platforms where health and wellness topics are frequently discussed. Owing to this, consumers have become more quality-oriented, which has impacted the purchases of bottled water through various retail stores instead of foodservice channels. The preference toward particular brands and the availability of various products drive sales through retail channels in the country.
Brands are responding to this demand by offering various types of bottled water, including spring water, mineral water, and water infused with flavors or vitamins, through various retail channels such as supermarkets. The convenience of bottled water, combined with its perceived health benefits, makes it an attractive choice for consumers on the go. Moreover, the harsh climatic conditions of the region, where temperatures can soar, drive the demand for bottled water as a reliable source of hydration. This growth trajectory is supported by robust marketing strategies that emphasize purity, health benefits, and environmental sustainability, resonating well with the increasingly health-conscious Saudi consumer base.
