Soft Drinks - Kuwait

The Soft Drinks market in Kuwait has been experiencing significant growth in recent years.

Customer preferences: Kuwaiti consumers have shown a growing preference for healthier beverage options, including low-sugar and natural drinks. This shift in consumer preferences can be attributed to increasing health consciousness and awareness about the negative effects of excessive sugar consumption. As a result, there has been a rise in demand for products such as bottled water, flavored water, and natural fruit juices.

Trends in the market: One of the key trends in the Soft Drinks market in Kuwait is the increasing popularity of energy drinks. These beverages are favored by young consumers who seek a quick energy boost. The trend can be attributed to the fast-paced lifestyle and the need for instant energy among Kuwaiti youth. Additionally, the growing popularity of energy drinks can also be attributed to aggressive marketing campaigns and endorsements by celebrities, which have successfully captured the attention of the target market. Another trend in the market is the rising demand for premium and imported soft drinks. Kuwaiti consumers are increasingly seeking unique and high-quality beverages from around the world. This trend can be attributed to the growing affluence of the population and their willingness to spend more on premium products. As a result, there has been an increase in the availability of imported soft drinks in local supermarkets and specialty stores.

Local special circumstances: Kuwait has a hot and arid climate, which makes soft drinks a popular choice among consumers to quench their thirst and stay hydrated. The convenience and availability of soft drinks in various packaging formats, such as cans and bottles, make them a preferred choice for on-the-go consumption. Additionally, the presence of a large expatriate population in Kuwait has also contributed to the demand for soft drinks, as different cultural preferences and tastes are catered to by a wide range of products available in the market.

Underlying macroeconomic factors: The Soft Drinks market in Kuwait has been positively influenced by favorable macroeconomic factors. The country has a high per capita income, which allows consumers to spend on discretionary items such as soft drinks. Additionally, Kuwait has a stable political environment and a well-developed infrastructure, which facilitates the distribution and availability of soft drinks across the country. The government's focus on diversifying the economy and promoting tourism has also contributed to the growth of the Soft Drinks market, as it has attracted more visitors to the country who contribute to the demand for beverages. In conclusion, the Soft Drinks market in Kuwait is experiencing growth due to changing customer preferences, including a shift towards healthier options and an increasing demand for premium and imported beverages. The hot climate and the presence of a large expatriate population also contribute to the demand for soft drinks in the country. Favorable macroeconomic factors, such as high per capita income and a stable political environment, further support the growth of the market.

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.