Palatinose - Soft Drinks International

Soft Drinks International – February 2011
The launch of GWBT is announced. From left to right: Gary Robson, Paul Wilson, Abdul Salam Al Madani, H.E. Helal
Saeed Almarri, Larry Hobbs and Dr Ahmed Al Banna.
“Index Conferences and Exhibitions – a member
of Index Holding – has played a big role since
1990 to raise the national economy of the UAE,
by organising more than 22 international exhibitions
and conferences, which cover all sectors
from medical to education, commercials, technologies,
and entertainments. With more than 20
years of experience as a total management company
it is well positioned to add value to this
strategic partnership.” ■
DDTE
Market background
Total consumption of non-alcoholic beverages in the UAE, including packaged water, reached almost 2.6 billion litres in 2008, worth more
than US$ 1.1 billion at retail level. This corresponds to average per capita consumption of just less than 500 litres per annum, well in
excess of consumption of tea, coffee, and dairy beverages which account for perhaps a further 130 litres per capita. If dispenser water is
excluded, consumption is estimated at 1.5 billion litres, and worth around US$ 1.0 billion. Just three main product groups – carbonates,
juices and water – account for 92% of this market volume.
Recent growth has been driven primarily by a rapidly expanding population in addition to a strong increase in tourist and business visitors.
Market dynamics vary from sector to sector, with some of the key recent developments including:
In Kuwait, the total consumption of non-alcoholic beverages, including packaged water, reached more than 730 million litres in 2008,
and was worth almost US$ 560 million retail. This corresponds to average per capita consumption of just less than 215 litres per annum,
well in excess of consumption of tea, coffee, and dairy beverages which accounts for perhaps a further 140 litres per capita. If dispenser
water is excluded, consumption is estimated at 668 million litres, and is worth just under US$ 550 million.
Although Egypt has one of the largest populations in the Middle East, the non-alcoholic beverages market is relatively small and undeveloped,
particularly when compared to neighboring GCC markets. If dispenser water is excluded, the soft drinks market was valued at
US$ 1.05 billion in 2008, compared with US$ 3.24 billion in Saudi Arabia, a country with 57 million fewer people!
However, consumption is growing strongly at rates way in excess of most GCC markets and reached almost 2.9 billion litres in 2008,
worth close to US$ 1.1 billion retail, if packaged water is included. Growth has averaged almost 14% per annum over the past five years
helped by a reduction in sales tax in 2006 and a step up in the marketing efforts of leading carbonates and juice suppliers.
KSA can justifiably be regarded as the most sophisticated Middle East market for non alcoholic beverages. Not only are per capita
amongst the highest in the region but significant competition in supply has encouraged companies to foster a climate of innovation in an
effort to achieve some degree of differentiation.
Total consumption of non-alcoholic beverages, including packaged water, exceeded 6.1 billion litres in 2008, worth almost US$ 3.4 billion
at retail level. This corresponds to average per capita consumption of around 216 litres per annum, well in excess of consumption of
tea, coffee, and dairy beverages which accounts for perhaps a further 170 litres per capita. If dispenser water is excluded, consumption is
estimated at 4.1 billion litres, and worth around US$ 3.2 billion. Two categories – carbonates and juice products - account for around 70%
of this by value (slightly less in volume terms).
Consumption of non-alcoholic beverages in Oman is growing steadily, averaging growth of 9-10% per annum over the past five years.
Total consumption, including packaged water, was 556 million litres in 2008, worth around US$ 290 million at retail level. This corresponds
to average per capita consumption of around 215 litres per annum, compared with consumption of tea, coffee, and dairy beverages
which accounts for a further 230 litres per capita.
It is not surprising that consumption of non-alcoholic beverages in Qatar, including packaged water, grew at an average rate of more than
14% per annum since 2004 to reach 424 million litres by 2008, worth more than US$ 165 million at retail level. This corresponds to average
per capita consumption of almost 355 litres per annum, well in excess of consumption of tea, coffee, and dairy beverages which account
for perhaps a further 150 litres per capita. If dispenser water is excluded, consumption is estimated at 220 million litres, worth around US$
145 million. Just three main product groups – carbonates, juices and water – account for more than 90% of this market volume
Source: DDTE
51
The first GWBT
will be held in
conjunction with
the fourth
edition of the
Dubai Drink
Technology
Expo, which
will take
place from
29th november
to 1st December
2011.