Soft Drinks - GCC

The Soft Drinks market in GCC is experiencing significant growth and development in recent years.

Customer preferences: Customers in the GCC region have shown a strong preference for soft drinks, with a particular emphasis on carbonated beverages. These drinks are often consumed as a refreshing and indulgent treat, especially during hot weather. There is also a growing demand for healthier alternatives, such as low-sugar or sugar-free options, as consumers become more health-conscious. Additionally, flavored water and energy drinks have gained popularity among younger consumers who are looking for functional beverages.

Trends in the market: One of the key trends in the GCC soft drinks market is the increasing popularity of local and regional brands. Consumers in the region are showing a preference for products that are made locally, as they believe these brands understand their tastes and preferences better. This has led to the emergence of several successful homegrown soft drink brands, which are competing with international giants in the market. Another trend is the rising demand for premium and innovative soft drinks. Consumers in the GCC region are willing to pay a premium for beverages that offer unique flavors, high-quality ingredients, and attractive packaging. As a result, manufacturers are constantly introducing new and innovative products to cater to this demand. This includes the launch of exotic fruit-flavored drinks, natural and organic options, and limited-edition variants.

Local special circumstances: The GCC region has a unique cultural and social environment that influences the soft drinks market. For example, Ramadan, the holy month of fasting for Muslims, has a significant impact on beverage consumption patterns. During this period, the demand for soft drinks increases as people break their fast with refreshing beverages. Manufacturers often introduce special promotions and packaging during Ramadan to cater to this increased demand. Additionally, the GCC region has a high expatriate population, which brings with it diverse tastes and preferences. This has led to a wider variety of soft drinks being available in the market, catering to different cultural backgrounds and preferences. Manufacturers are increasingly focusing on creating products that appeal to this diverse consumer base.

Underlying macroeconomic factors: The GCC region has experienced strong economic growth in recent years, which has contributed to the development of the soft drinks market. Rising disposable incomes and a growing middle class have led to increased consumer spending on non-essential items like soft drinks. This has created a favorable environment for manufacturers to expand their operations and introduce new products. Furthermore, the GCC countries have invested heavily in tourism and hospitality infrastructure, attracting a large number of international visitors. This has created a demand for soft drinks in hotels, restaurants, and entertainment venues, further driving the market growth. The region's strategic location as a global transit hub also plays a role in the increasing demand for soft drinks, as travelers passing through the GCC often purchase beverages during their layovers. In conclusion, the Soft Drinks market in GCC is witnessing significant growth and development due to customer preferences for carbonated beverages, the emergence of local and regional brands, the demand for premium and innovative products, and unique cultural and social circumstances. The underlying macroeconomic factors, such as strong economic growth and the region's strategic location, also contribute to the market's growth.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.