UAE Bottled Water Market Research Report: Forecast (2021-2026)

Market Definition

Bottled water is the drinking water packed in plastic or glass bottles. These bottles are considered the most convenient & easily available sources of carrying water with advantages to refill over & over again. Different types of drinks are bottled & supplied across the UAE. Some prominent types of water packed in bottles include Purified Water, Mineral Water, Sparkling Water, & Spring Water. With the increasing water requirements of the burgeoning population, entwined with increasing water scarcity & contamination levels, the demand for bottled water is rapidly surging across the UAE.

Market Insights

The UAE Bottled Water Market is projected to grow at a CAGR of around 6% during the forecast period, i.e., 2021-26. The growth of the market is likely to be driven primarily by the rapidly mounting focus of the UAE government on economic diversification. It, in turn, is leading to massive infrastructural developments to cater to the increasing number of tourists & travelers in the country and propelling the demand for different types of bottled water for excellent hospitality services.

IAdditionally, the rapidly expanding food & beverages sector in the country through different service channels like hotels, pubs, cafes, & restaurants, among others, is also soaring the demand for bottled water and, in turn, augmenting the market growth. 

Besides, the rapidly increasing population in the UAE is another prominent aspect playing a crucial role in escalating the demand for bottled water and encouraging the leading players to increase their production capabilities to suffice the burgeoning water requirements. Moreover, growing health consciousness among people is instigating the demand for bottled water entwined with an increasing inclination toward flavored water consisting of herbs, fruits, minerals, & vitamins, etc., shall also boost the bottled water market growth through 2026.

Impact of Covid-19 on the UAE Bottled Water Market

The Covid-19 pandemic had a decelerating impact on most industries, where the UAE Bottled Water Market was no exception. With the imposition of stringent movement restrictions & frequent lockdowns by the government to curb the spread of these dreadful diseases, the market witnesses several unprecedented challenges like the shutdown of production units, shortage of raw materials required for bottle manufacturing, supply chain disruptions, etc.

However, on the other hand, the market witnessed a surging demand for bottled water as consumers began stockpiling essential food & beverages owing to the uncertainty of lockdowns & restrictions entwined with growing concerns associated with health & hygiene. It, in turn, compelled the manufacturers to increase their production.

As a result, the consumers began to feel assured about the availability of bottled drinks in volume at stores & supermarkets. It enabled the market to regain its usual pace and present growth opportunities to the leading players. Moreover, the same trend is likely to be followed in the coming years & positively influence the market growth.

Market Segmentation

Based on the Category:

• Plain
• Flavored

Of both, Flavored bottled water is anticipated to display the fastest market growth & a growing demand during the forecast period. It owes principally to the increasing consumer preference toward exploring beverages infused with herbs, fruits, & other healthy ingredients and propelling the demand for flavored drinks.

Besides, the Covid-19 pandemic played instigated the public to adopt healthy drinking habits and increased the demand for flavored hydration products with the benefits of vitamins & minerals to build immunity and restrain diseases. As a result, the market witnessed a hiking demand for flavored bottled water & is projected to observe the same in the coming years, augmenting the market growth.

Moreover, the escalating trend of zero sugar, zero-calorie, & low carb content soft drinks, especially among the Gen-Z population, is displaying growth opportunities for the leading players to manufacture flavored drinks with citrus & berry flavors being the popular choices.

Furthermore, an increasing number of the population with obesity & diabetes are shifting preference toward flavored drinks than carbonated soft drinks, which in turn, is positively influencing the market growth. 

Based on the Type of Water:

• Purified Water
• Mineral Water
• Sparkling Water
• Spring Water

Of them all, Purified Water acquired the largest market share in recent years and is anticipated to prevail the same trend during the forecast period. It owes principally to the rapidly increasing population entwined with an escalating number of tourists in the country, propelling the demand for drinking water and generating growth opportunities for the leading players to increase the production of purified bottled water to suffice the mounting water requirements.

Additionally, the growing water crisis & failing water supplies due to water contamination & climatic change are further stimulating the demand for purified water in the country. Besides, growing concerns associated with health & lack of trust in water suppliers are the other prominent aspects fueling the demand for purified bottled water for consumption and driving the market through 2026. 

Recent Developments in the UAE Bottled Water Market

• In February 2020, Agthia Group PJSC declared the launch of UAE's first plant-based water bottle, Al Ain Plant Bottle as a step toward sustainability. The group also signed a contract with a resource management company Veolia to launch a Pet water bottle collection in the country. 

Market Dynamics:

Key Driver: Growing Health Consciousness

With rapidly increasing health consciousness among people, especially after the Covid-19 pandemic in 2020, the consumption of healthy beverages & hydration drinks enriched with vitamins, minerals, herbs, fruits, and other essentials has significantly escalated across the UAE. It, in turn, is propelling the demand for flavored drinks & healthy beverages while enabling manufacturers to increase their production to suffice the burgeoning requirements of the public. Hence, this could play a crucial role in driving the UAE Bottled Water Market through 2026.

Possible Restraint: Environmental Concerns Associated with Bottled Water Processing

Several bottled water producing companies in the UAE are criticized for their manufacturing procedures since the production requires massive consumption of energy to extract, process, and bottle the water, which, in turn, is affecting their reachability & hampering the UAE Bottles Water Market growth.

Additionally, mounting concerns associated with the harmful effect of plastic and improper disposal of these materials leading to increased pollution & natural depletion is another prominent aspect projected to restrain the growth of the UAE Bottled Water Market during the forecast period.

Growth Opportunity: An Extensive Range of Bottled Drinks

With an escalating inclination toward consuming healthy beverages with minerals & vitamins, and natural flavors of fruits, herbs, etc., the demand for flavored drinks & healthy beverages is rising swiftly. It, in turn, is generating lucrative opportunities for the leading players to introduce new products in different flavors in the coming years.

Key Questions Answered in the Market Research Report:

1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the UAE Bottled Water Market?
2. What are the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the UAE Bottled Water Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the UAE Bottled Water Market based on the competitive benchmarking matrix?
5. What are the key results derived from surveys conducted during the UAE Bottled Water Market study?

Frequently Asked Questions