Saudi Arabia Soft Drinks Market Analysis – 2018-2027
A soft drink is a non-alcoholic beverage, which contains some form of sweetener and natural or artificial flavoring substance. It is usually packaged in PET bottles, glass bottles, or cans. The Saudi Arabia soft drinks market is anticipated to achieve a CAGR of 8.56% over the forecast period 2020-2027. Factors such as growing social and economic transformation in Saudi Arabia, increasing opportunities generated by the availability of various flexible packaging alternatives including bags or pouches and the growing popularity of healthier variants of soft drinks, such as kombucha and other types of functional teas which is raising the need amongst the manufacturers to produce different types of beverages are some of the factors believed to promote towards the growth of the Saudi Arabia soft drinks market. Additionally, ban on consumption, import, brewing and sale of alcoholic beverages in Saudi Arabia, owing to the Islamic nation being conservative in nature that promotes strict measures to follow Islamic laws, has provided the manufacturers of non-alcoholic beverages to produce and promote a wide variety of soft drinks into the market without the fear of competition from alcoholic beverages unlike other countries. Such a factor, in addition to the hot and humid climatic condition of the nation, growing population in the nation and the increasing need amongst individuals in the nation for beverages which are low in calories, promotes good health and align with the active lifestyle of consumers are some of the factors anticipated to drive the growth of the Saudi Arabia soft drinks market.
The soft drinks market in Saudi Arabia is primarily driven by the key players, namely The Coca-Cola Company and PepsiCo, Inc. Apparently, the market is highly fragmented with several local players who are serving soft drinks in different packaging forms to meet the customer demand.