Market Definition
Bottled water is drinking water packed in plastic or glass bottles. These bottles are considered the most convenient & easily available sources of carrying water with the advantage of refilling over & over again.
Market Insights & Analysis: The UAE Bottled Water Market (2023-28)
The UAE Bottled Water Market is projected to grow at a CAGR of around 6.0% during the forecast period, i.e., 2023-28. The likelihood of the expansion of the market is mainly speeding up due to the rise in the urban population, the region's introduction to more tourists, and the UAE government’s mounting focus on economic diversification. Along with that, the scarcity of fresh and contaminated water in the region is, in turn, extending the government's limits to looking over the increasing demands of tourists as well as the citizens to fulfill their requisites of drinking fresh, mineral, functional, and flavored water.
In addition, the tremendous infrastructural developments, the progress of the catering industry, and the elimination of open water in multiple food channels, including cafes, hotels, restaurants, etc., aim to propel the demand for different types of bottled water for excellent hospitality services in the country.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 6.0% |
| Key Companies Profiled | Masafi, Agathia Group, Nestle, AL Ghadeer Drinking Water L.L.C, Falcon Spring, Dubai Crystal Mineral Water & Refreshments L.L.C, Our Oasis, AWAFI MINERAL WATER CO., Zulal Water Company, Mai Dubai etc. |
| Unit Denominations | USD Million/Billion |
Irrespective of the above crucial aspects, the rapidly increasing population in the UAE is another prominent aspect that portrays a lead role in escalating the need for packaged water & urging the dominating industry players to multiply their production capabilities to suffice the burgeoning safe drinking water requirements, further affecting the UAE Bottled Water Market share. Moreover, growing health consciousness among people is instigating the demand for purified and safe drinking water entwined with an increasing inclination toward flavored water consisting of significant nutritious values, including herbs, fruits, vitamins, minerals, and other preservatives, which shall also promote the bottled water market for the grounds of promising revenues during projected period of 2023-2028.
Market Dynamics
Key Driver: Rapidly Growing Health and Hygiene Consciousness Specially After the Pandemic
Most of the market expansion can be attributed to ever-increasing consciousness regarding health and hygiene after the pandemic, which has led to healthy eating habits. And consuming safe and adequate amounts of water has been one of them. Consequently, 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 water while enabling manufacturers to increase their production to suffice the burgeoning requirements of the public.
Possible Restraint: Growing Environmental Concern Due to Plastic Pollution Caused by These Bottles
Since the leading players of the UAE Bottled Water Market manufactures plastic bottles for storing water and supplying it to the different marketplaces, the ultimate concern of Environmental issues rise which eventually leads to Plastic pollution. Based on the reports, the UAE is accountable for consuming 4 billion of plastic bottles on an annual basis. These bottles become the reason of adverse modifications in the ecosystem and when these bottles are burned, toxic dioxin is emitted in to atmosphere which holds responsible for the Ozone Layer Depletion.
Key Trend: Increasing Popularity of Functional and Flavored Bottled Water
In recent years, the popularity of functional and flavored bottled water has been on the rise in the UAE. Functional variant includes water infused with vitamins, minerals, and electrolytes, providing additional benefits beyond hydration and targeting health-conscious consumers. On the other hand, these products are marketed toward flavored one and offer a range of tasty options for consumers who want to enjoy their water without the added calories of sugary drinks. In addition, brands have introduced various flavor options, such as lemon, strawberry, peach, and mint, to cater to different tastes. The demand for functional and flavored packaged water is expected to continue growing in the UAE as consumers increasingly prioritize health and wellness.
Growth Opportunity: Introducing Eco-friendly Bottles
The UAE's consumers are becoming more conscious of sustainability and are prioritizing environmentally friendly products. As a result, they are actively seeking ways to reduce their environmental impact and are looking for products that align with their values. Thus, providing products, particularly Bottled water, in sustainable packaging can significantly reduce plastic waste in the UAE. Again, by addressing this market gap by offering sustainable packaging, brands may demonstrate their leadership in the market.
Market Segmentation
Based on the Category,
Amongst the following, Flavoured Bottled Water captures the substantial share & has more potential to thrive in the market at a rapid rate within the forecast period. Since consumers' preferences are stretching toward exploring beverages infused with herbs, fruits, & other healthy ingredients, the industry is sooner or later going to witness a great demand for its production.
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. In addition, the young population is also shifting their preference from carbonated drinks to flavored bottled drinks as these contain zero-calorie and possess other multi-specialties, which in turn, is changing the entire landscape of the market expansion.
Based on the Type of Water,
The UAE's bottled water market is witnessing a significant surge in demand for purified water due to various factors. First, with the rapidly increasing population and a rising number of tourists, the sales for drinking water has escalated, resulting in purified water acquiring the largest market share. As a result, the marketplace giants are expected to increase production to meet the mounting water requirements.
Furthermore, the UAE's desert climate, with scorching summer heat, necessitates staying hydrated, leading to a growing market for packaged water. Tourists also need to stay hydrated in the region's climatic conditions, leading to an increase in demand for purified & other bottled water, thus contributing in enhancing the UAE Bottled Water Market size.
Moreover, the country's growing water crisis, contaminated water supplies, concerns associated with health, and lack of trust in water suppliers are fueling the need for purified packaged water for consumption and driving the market's growth through 2028.
Recent Developments in the Global Market
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Frequently Asked Questions
A. The UAE Bottled Water Market is projected to grow at a CAGR of around 6.0% during 2023-28.
A. Rapidly growing health and hygiene consciousness specially after the pandemic is expected to drive the UAE Bottled Water Market during 2023-2028.
A. The top players are Masafi, Agathia Group, Nestle, AL Ghadeer Drinking Water L.L.C, Falcon Spring, Dubai Crystal Mineral Water & Refreshments L.L.C, Our Oasis, AWAFI MINERAL WATER CO., Zulal Water Company, Mai Dubai etc.
A. The leading category in the market during 2023-2028 is the Flavored Bottled Water.
A. The demand for flavored drinks & healthy beverages is rising swiftly due to the minerals & vitamins, and natural flavors of fruits, herbs, etc., that it has to offer on an extensive level.
A. Growing environmental concerns due to plastic pollution are the possible restraints affecting the growth of the market during 2023-28?
