The Saudi Arabia Energy Drinks Market is projected to grow at a CAGR of 4.93% in the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. The major factor that has led to the growth of the market has been the growing consumer awareness towards health and fitness. Hence, with increasing sports and fitness activity in daily lifestyle, consumers are also adopting energy drinks in their regular diet to efficiently perform the excessive workout routine.
Additionally, the number of fitness enthusiasts in Saudi Arabia has been steadily increasing as more individuals have embraced a healthy fitness routine and incorporated rigorous workouts into their daily lives. This trend can be attributed to the rising prevalence of obesity and related disorders among consumers in the country. Consequently, the consumption of energy drinks has seen a boost. Also, this trend is expected to continue in the coming years as more people embrace a healthy lifestyle and engage in various forms of exercise to combat obesity and lifestyle-related health issues. This is projected to further fuel the growth of the Saudi Arabia Energy Drinks Market from 2023-2028.
Also, in recent times, there has been a notable preference among consumers in Saudi Arabia for sugar-free energy drinks. This trend aligns with the increasing awareness about health among consumers, as sugar consumption has been linked to various health risks such as weight gain, type 2 diabetes, and heart disease. The prevalence of these ailments, including diabetes, has been on the rise in Saudi Arabia, with projections indicating a further increase in the coming years.
Consequently, the growing population of diabetic patients in Saudi Arabia, who are advised to limit their sugar intake, is anticipated to drive the demand for sugar-free energy drinks in the foreseeable future. Recognizing this demand, companies like Monster Energy and Red Bull have introduced and expanded the availability of their zero-sugar energy drink offerings in Saudi Arabia in recent years, catering to the rising consumer preference for sugar-free options. This would escalate the market’s growth in the coming years, further states the research report, “Saudi Arabia Energy Drinks Market Analysis, 2023.”
Offline Channels to Generate Maximum Revenue for Energy Drinks Market
Based on the distribution channel, the market is divided into offline channels (Hypermarket/ Supermarket and Convenience Stores) & online channels. The offline segment holds a leading share of the market because Saudi Arabia has an extensive presence of offline retail stores that provide both local as well as international products. In addition to it, offline retail stores allow immediate availability of a newly launched range of energy drinks to customers due to which the inclination of consumers was more towards offline channels in the past years.
However, gradually this trend is changing as individuals are transitioning towards online retail platforms to purchase energy drinks & other beverages mainly because they find it difficult to visit a retail store due to their hectic work style. The growth of online channels is further bolstered by urbanization and busy work schedules, as they offer convenient doorstep delivery to customers. Consequently, an increasing number of individuals are anticipated to transition to online platforms for purchasing energy drinks and other beverages.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including ALJSR Global Co., Monster Beverage Corp., Redbull GmbH, Spitz GesmbH, Agro Food & Beverage, Torgini Gahansson Maggic House, Coca Cola Company, Pepsi Energy Co., Alesayi Beverage Corporation (Code Red), Abuljadayel Beverages Industries Llc., Health Water Bottling Co., etc.are looking forward to strengthening their market position.
Key Questions Answered in the Research Report