In the recently revised publication of Saudi Arabia drinking water industry by FMI, the industry is estimated to stand at USD 5,717.70 million in 2024. The demand for drinking water is being governed by intensifying need for sufficient volume of safe drinking water under normal operations as well as emergencies.
Sales of drinking water in Saudi Arabia are climbing at a CAGR of 7.9% during the estimated period. The demand for drinking water is predicted to peak at USD 12,229.10 million by 2034.
Attributes | Key Insights |
---|---|
Saudi Arabia Drinking Water Industry Size (2024E) | USD 5,717.70 million |
Industry Valuation (2034F) | USD 12,229.10 million |
Value-based CAGR (2024 to 2034) | 7.9% |
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Leading Product Type | Functional Water |
---|---|
Value Share (2024) | 40.4% |
Functional drinking water’s segment share is expanding to reach 40.4% by 2024 end. The segment’s growth is driven by rising concerns over obesity in the country. Bottled water companies are thus intently producing functional water, including zero-calorie herbal water infused with herbal extracts.
Many manufacturers are also releasing all kinds of fruits, mineral flavors, and herbs to elevate water’s taste and offer added health benefits. Running fitness and health trends are also creating significant demand for functional water.
Leading Sales Channel | Indirect Sales |
---|---|
Value Share (2024) | 70.1% |
Indirect sales continue to produce substantial earnings for key vendors. The segment is predicted to hold a monopoly over the industry with a massive 70.10% in 2024. Growing sales of bottled potable water from hypermarkets/ supermarkets, online retailers, convenience stores, and departmental stores are increasing this segment’s size.
Propagation of online channels via the company’s website and eCommerce platform rapidly increasing the sales of potable water. Additionally, online channels are highly preferred by bulk purchasers due to easier and faster delivery.
One of the motives of the National Water Strategy in the country includes high-quality and cost-effective water and wastewater services. Another strategic objective is to mobilize water sector competitiveness, localization of capabilities, private sector participation, and innovation.
In the competitive drinking water industry of Saudi Arabia, opportunities exist for water treatment and sewage water plants, contractors for water and wastewater systems, and consultants. Manufacturers of tanks, pipelines, flowmeters, smart meters, pumps, and other industry equipment are also expected to benefit from ambitious national water goals.
The United States exporters are further predicted to find business prospects in this remunerative industry. Although they do not need to appoint any local Saudi distributor or agent to do business with Saudi companies, it is highly suggested that they partner with a local firm to monitor business opportunities, identify contract opportunities and public sector sales, and maneuver standard testing and import regulations.
Players operating in the solar power sector are anticipated to profit from the improving uptake of solar generation, as the country aims to increase its renewable energy usage. Moreover, opportunities abound for water monitoring and efficiency solutions like helium gas, audio devices, and radar beams to surveil leaks in the networks.
Numerous key players who are contributing to the kingdom’s water goals are projected to have a far-reaching impact on Saudi Arabia’s drinking water industry, extending beyond the forecast period.
Going Down the Chain of Events Shaping the Drinking Water Industry in Saudi Arabia
For the mentioned year, the sales generated from drinking water are going to be USD 5,717.70 million.
Sales of drinking water are improving at an average of 7.9% in the forecast period.
By the end of the forecast period, the drinking water industry in Saudi Arabia has the potential to reach USD 12,229.10 million by 2034.
Functional water is going to remain a competitive segment in the regional industry.
Hayat Water, Al Hada Water Co. Ltd., and Naqi Water, form the top tier companies in the Saudi Arabia drinking water industry.
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