The Saudi beverage market is increasing at an annual rate of eight percent, with each Saudi household buying an average of 11 soft-drink brands, according to a report released by Kantar Worldpanel at the Middle East Beverage Congress.
Ranjitha Subash, consumer insights director-at-large for Kantar Worldpanel, said that the old beverages and dairy product are more contemporary segments. Energy drinks and flavored dairy products are leading the spurt.
“A new trend shows that the Saudi market is presenting a gradual shift toward cold drinks, with hot beverages losing growth momentum among their core consumers.
“The consumption of hot beverages such as coffee is centered on the more affluent parts of society, while tea is more widely consumer by the less well-off classes,” Subash noted.
The consumption of soft drinks is on the rise due to an increase in the young population of Saudi Arabia, coupled with an increase in the number of expatriates in the Kingdom.
Increased competition among mature soft-drink brands, however, will force manufacturers and distributors to resort to price competition, thereby reducing their profit margins.
Saudi households using more soft-drink brands
