Hypermarkets & Supermarkets account for a leading 45.3% share in the distribution of Hot Drinks in Saudi Arabia-Foodex Saudi

Hot Drinks Sector accounted for a volume share of 0.83% of the global market and 24.9% of the regional (Middle East & Africa) market in 2017. The sector was valued at SR 10, 211.5 million (US$2,723.1 million) in 2017 and is forecast to grow at a CAGR of 2.8% during 2017-2021.The sector is driven by a growing coffee culture in Saudi Arabia. Introduction of new flavors and blends, particularly in the Hot Tea market, and growing demand for healthier options in the Other Hot Drinks market, are also aiding the sector growth. Per capita consumption of Hot Drinks products stood at 2.9kg, which is higher when compared to both global and Middle East & Africa levels of 2.17kg and 1.9kg, respectively.

Hot Coffee was the largest with value sales of SR 5, 062.6 million (US$1,350 million) in 2017. The market is also expected to grow the fastest at a CAGR of 3.15% during the forecast period (2017-2021), while Hot Tea and Other Hot Drinks are expected to record CAGRs of 2.28% and 3.13%, respectively.

Hypermarkets & Supermarkets account for a leading share in the distribution of Hot Drinks in Saudi Arabia. It accounted for 45.3% share in 2017, followed by Convenience Stores with a 28.8% share, while On-trade transactions held a 20.3% value share in the same year. Moderate forecast GDP growth and good employment rate makes Saudi Arabia an attractive destination for consumer goods companies.

Flexible Packaging is the most commonly used package material in the Saudi Arabian Hot Drinks Sector. It accounted for a volume share of 51.9%, followed by Paper & Board and Rigid Metal with shares of 27.8% and 10.6% respectively the consumption of Hot Drinks is high among the male population in Saudi Arabia. Moreover, consumption is particularly high among those consumers who received Tertiary education. In terms of consumption by age group, Kids & Babies and Older Young Adults together accounted for 48% share in 2017.

Lipton is the leading brand in the Saudi Arabian Hot Drinks Sector. It held a value share of 19.6% in 2017, while the top five brands in the sector accounted for a combined share of 49%in the same year.

Source: Market Research