· Saudi beverage market experiencing 8% annual growth
· Eleven beverage categories purchased per household
· Average of 11 beverage categories per household
The Saudi beverage market is growing at an annual rate of over eight percent according to Ranjitha Subash, Consumer Insights Director at Kantar Worldpanel.
Their information reveals the beverage sector is driving the wider growth noted in the food industry, with each Saudi household buying an average of eleven various beverage categories. Subash cites information derived from a consumer purchasing panel in Saudi Arabia and shared at the recent the Middle East Beverage Congress.
“Interestingly, in the cold beverages and dairy product range, more contemporary products like energy drinks, malt drinks and flavoured dairy products are leading the spurt. The high growth rate of these products indicates fragmentation of the beverage market through the development of differentiated need states.” — Ranjitha Subash
Her insight goes on to reveal that several high growth categories are expanding the Saudi buyer base. Flavoured dairy products enjoy an increase in both buyer base and consumption levels; the best form of sustainable growth.
“Though the ‘newer formats’ are gaining momentum, these categories are more inclined towards expats who seems to be the early adopters, locals still prefer traditional beverages like coffee, concentrates and Laban. Another big trend indicates that the Saudi market is showing a gradual shift towards cold, with hot beverages losing growth momentum among its core consumers. Residents still continue to consume hot beverages with coffee more patronised by affluent consumers and tea relatively toward workers.” — Ranjitha Subash
Shopper’s behaviour is changing in the various beverage categories. It has revealed the number of shopping trips for beverages has not increased over time, even as most of the beverage categories are seeing an increase in basket size where consumers are either upsizing or opting for multipacks. Brands need to compete for basket share during these trips.
The Kingdom is home to a population of 28 million, which continues to grow at three percent per annum, or three times more than the world growth, forming an important market.
“We need to watch and track the momentum of this evolving beverage market that is poised for a promising future as it’s time now for these new beverage merchandisers to get cracking on speaking to the local Saudi families to accelerate their growth momentum. Our home panel data reveals a compelling truth, which is that there are only three ways to grow a business; gaining more consumers, making consumers buy more often and making them purchase bigger quantities.” — Ranjitha Subash
Kantar Worldpanel is the global leader in consumer insights based on continuous consumer panels while TNS features as the world’s largest custom market research organisation. Both are part of Kantar, one of the world’s largest insight, information and consultancy networks.