Data show that the mineral water market is booming in the richest countries in the Middle East, particularly in the United Arab Emirates.
The bottled water market within this congregation has been valued at $797.92 million in 2020, but forecasts are up, so much so that it is estimated to reach a compound annual growth rate (CAGR) of 10.81% within the five-year period 2021-2026. Let us understand some essential points.
The climate factor surely affects this strong growth, given that the country generally reaches 42 degrees in August, while the lowest temperature is recorded in January, with 12 degrees.
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The bottled water market (PET and glass) in the United Arab Emirates is segmented by types, the main ones are still water and sparkling water, to which is also added the so-called functional water, i.e. water containing additives that provide an extra nutritional value (also known as aquaceutical).
Market analyses take account, of course, of distribution channels, i.e. supermarkets and hypermarkets, convenience stores, home and office delivery.
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The COVID-19 pandemic has had an important impact in relation to the bottled water market in the country.
During the first global emergency, in March 2020, consumers stocked up on essential food and drink, which boosted sales of the products. Afterwards, people felt reassured about the availability of goods, so bottled water sales stabilized as early as the following month.
Beyond Covid-19 during the last two years there has been a surge in demand for flavored functional water.
These are products, generally sold in PET bottles, consisting of water to which infusion micronutrients are added, as well as the addition of captivating aromas.
To these aspects, an evolutionary trend is added in terms of PET packaging, with characteristics of originality and refinement, such as to make the products more and more original and distinctive compared to traditional water bottles. It is therefore a type of product that will grow further and not only within the Arab market.
But functional water is not the only growing trend within the bottled water market in the Gulf states. The Arab country, over the last 10 years, has recorded a strong expansion of the tourism sector through investments and incentives put in place by its Government. The UAE is in fact considered as one of the main tourist and leisure destinations in the global context.
This is a crucial factor in terms of bottled water consumption, considering the growth of the main sales channels such as cafes, pubs, hotels and restaurants, which are rising sharply throughout the country.
Bottled water companies in the UAE are developing various sizes of bottles that can meet the needs of tourists, but not only.
Among these, small PET formats are having great success. We are talking about smaller and smaller bottles of 330, 200 and 180 ml, basically the amount of a glass of water.
In addition to the ideal size for airlines, these formats allow not to waste mineral water, since they are designed in such a way that all the content is consumed in a single solution. In addition, they are easily transportable with little footprint and this clearly favors tourists in their travels.
These characteristics are combined, as with functional water, with careful care of packaging design with free label solutions.