Country Reports - UAE

Portable Water Bottles Trending in the UAE

January 2018

Country Reports - UAE

Portable Water Bottles Trending in the UAE

January 2018

Hectic lifestyles, the need for practicality, and convenience have created a need for bottled water in such fast-paced times. Rapid urbanization, health care, and increase in population are all contributing factors to the growth of the bottled water industry. 

The change in consumers' preference has boosted the sales of bottled water in the GCC region especially Saudi Arabia and the UAE. Each country envisages and aspires a greater economic dynamism and prosperity. And wants to be a creditor nation than being a debtor nation. But that is not easy to achieve. It depends on respective government's public policy, political and sovereign power and the overall laws of the country.

Lasting prosperity is a result of a persistent commitment to low tax rates, a stable currency, limited government, strong private property rights, openness to global trade and financial flows, and sensible regulation. Bottled Water industry in UAE is a fast growing sector and an important source of earnings for the nation, according to Mordor Intelligence. Domestic bottled water market, focuses on the development and enhancement of plants, factories and market (storage and distribution) in the country. There have been a remarkable progress in the field of Bottled Water in the past 5 years.

The availability of different flavors and types of flavored water has also made it a popular beverage choice among consumers

UAE's focus on improving water facilities have resulted in growth of Bottled Water in the country. Changing inhabitant's perception, travelling and need of treated water in the country have impacted the Bottled Water industry in positive ways. With a population of 9.35 million, UAE is one of the biggest economy in the world. Even though UAE faced some economic problem in 2008 economic crisis; the country has high per capita income of USD43, 049. The country also has a favorable demographic structure needed for its fast scaled growth.

In the GCC region the market for bottled water has been expanding as an increasing number of consumers shift towards bottled water, according to Research and Markets. Bottled water provides consistent quality, purity and taste as compared to tap water which can easily be contaminated. Moreover, bottled water is convenient to carry and use, and makes it easier to measure water intake. The availability of different flavors and types of flavored water has also made it a popular beverage choice among consumers. One of the major factors driving the market growth is the rising health consciousness among consumers which has boosted the demand for bottled water as opposed to carbonated soft drinks and other beverages.

The growth in the travel industry coupled with the expanding food service sector have also influenced the market growth. Some of the other factors include increasing population, rising disposable income, rapid urbanization and premiumisation. According to the report, the market is further expected to reach a volume of around 23 Billion Litres by 2022. Currently, still water represents the largest type, accounting for the majority of the shares in the region. The report has further segmented the market on the basis of distribution channels including supermarkets/hypermarkets, retailers, stores, on-trade and others. On the basis of country, Saudi Arabia represents the largest market for bottled water in the region. The report has further analyzed the competitive landscape of the market.

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