The country is among the world's highest in per capita consumption

1.68 billion dirhams expected sales of "bottled water" in the UAE in 2025

Local brands hold a large share in the country's bottled water market.

archival

An economic analysis of the Dubai Chambers of Commerce stated that the UAE is among the highest countries in the world in terms of per capita consumption of bottled water, due to the hot climate and the population's tendency towards health and wellness. It is expected that by 2025, the volume of retail sales of bottled drinking water will reach about 1,153 billion liters (1.680 billion dirhams), with a compound annual growth rate of 1.4% from 2020 to 2025.

He stressed that local brands own a large share in the market for selling bottled water in the country, and the country mainly imports high-quality water from other countries, and the analysis showed that the demand for bottled water boomed during the “Corona” pandemic and it will remain a popular choice among drinks in the post-epidemic period. .

7th place

In detail, an economic analysis of the Dubai Chambers of Commerce quoted the International Bottled Water Federation, that in 2019 the UAE ranked seventh in the world and first in the Middle East in terms of per capita consumption of bottled water, and specifically in the same year, the per capita consumption rate in the UAE reached about 137 liters of bottled water, with a compound annual growth rate of 4.4% for consumption from 2014 to 2019.

The analysis indicated that the demand for bottled water in the UAE continued to grow even during the outbreak of the Corona pandemic in 2020, and retail sales of bottled drinking water in the UAE amounted to 1.074 billion liters (1.643 billion dirhams), and sales grew at a compound annual growth rate of 2.4% from in volume and 4.8% in value between 2015 and 2020.

pandemic period

The analysis revealed that during the pandemic period, the demand for flavored and sugar-sweetened beverages decreased due to health concerns, but the retail sales volume of bottled drinking water recorded an annual growth of 0.5% in 2020, and it is expected that by 2025, the retail sales volume of bottled drinking water will reach About 1.153 billion liters (1.680 billion dirhams), with a compound annual growth rate of 1.4% from 2020 to 2025.

The analysis indicated that there is great competition in the UAE bottled water market, and this has forced local companies to apply modern technology to reduce sodium levels in bottled water and increase the pH level.

market leader

In 2020, Al Ain Food and Beverage Company was at the forefront of the bottled water market in the UAE, and among other large companies in this market, Masafi Mineral Water Company, Mai Dubai, Coca-Cola and others, and there is an increase in demand for large-sized bottles of bottled water during the epidemic period, along with A surge in the growth of bottled water sales via e-commerce channels.

According to the Dubai Chamber's price survey database, the average price of a 1.5-liter bottle of drinking water in Dubai ranged between 1.38 and 1.78 dirhams in 2020, while the same package of imported bottled water ranged between 7.10 and 9.21 dirhams.

Experts expected that bottled drinking water will remain the popular choice among consumers in the UAE due to its health benefits, and companies can increase their sales of bottled water by adopting innovative solutions, developing new marketing strategies and using multiple sales channels.

The analysis showed that the Corona pandemic had a positive impact on the bottled drinking water trade in Dubai.

According to Dubai Customs, Dubai's imports of bottled drinking water amounted to 14.1 million tons (28 million dirhams) in 2020, which is 6% higher than the previous year.

The epidemic also led to a boom in Dubai's exports of these products in the same year, reaching their highest levels ever, when they recorded 12.4 million tons, 413 times higher than their level in 2019.

Trade partners

Five countries accounted for 93% of Dubai's total imports of bottled drinking water in 2020, according to Dubai Customs. Turkey recorded the highest share at 32%, followed by Norway (31%), Oman (24%), Lithuania (5%), and Italy (1%), and the share of other countries is about 7%, given the high income that can be spent, and the large number of residents from Western countries in Dubai, and there is a great demand for luxury bottled drinking water that is imported from abroad, and more than 65% comes Of these luxury waters from Turkey and the European Union, but there are also great opportunities to diversify these imports from other countries in Latin America (eg Argentina) and Asia (eg China).

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