Trends, Growth, and Opportunity Analysis of Drinking Water in Saudi Arabia

Saudi Arabia Drinking Water Industry Outlook from 2024 to 2034

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%

Hot Trends and Opportunities in the Saudi Arabia Drinking Water Industry

• Growing demand for water desalination is spurred by Crown Prince Mohammed bin Salman’s goal of making Saudi Arabia a global tourism and business hub.
• Surging need for more desalination projects like Jazlah as the Prince has a humongous goal to increase the kingdom’s population to amass 100 million people by 2040 end. This is 3X the present population is Saudi Arabia, which stands at 32.2 million.
• The owner of desalinated water production plants assesses that the population growth would mean a higher quality of life. This would translate to a greater need for water in the future.
• The hot and dry climate of Saudi Arabia means that it makes for a rich source of solar power. The country is thus just starting to use blinding noontime rays to power water desalination facilities via solar panels.
• Since Saudi Arabia is rich in renewable resources like solar energy, players in Saudi Arabia are starting to use solar panels to power a water desalination facility. This is a key step in making this infamous emissions-heavy process less taxing environmentally. This innovation is expected to be scaled up fast to meet the exacting demands on the kingdom.

Category-wise Saudi Arabia Drinking Water Industry Analysis

Sales of Functional Water to Generate Maximum Share in Saudi Arabia Drinking Water Industry

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.

Indirect Sales Command a Leading Industry Share

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.

Ample Opportunities Make the Drinking Water Industry Attractive for Key Players

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

• In January 2024, the National Water Company (NWC) announced that it has completed the operation of eight new drinking-water treatment stations as part of its national water strategy. This strategy aims to improve the water quality offered to customers and increase the coverage with desalinated water.
• In January 2024, the National Water Company in Saudi Arabia announced that it would commence supplying desalinated water to one lakh beneficiaries in Dhahran. This will include districts like Dana, Doha, Sulaimaniya, Al-Jami’ah, and King Fahd College of Petroleum and Minerals (KFUPM).
• In September 2023, the King Salman Humanitarian Aid and Relief Center signed a USD 5 million deal to deliver clean drinking water in Somalia. The key motivation behind this agreement is the drought-affected communities in the region. The deal will lead to the drilling of 24 solar-powered artesian wells, and the restoration of additional 20 wells.

Key Coverage in the Saudi Arabia Drinking Water Industry Research Report

• Pricing Strategy to be Effective in Drinking Water Industry in Saudi Arabia
• Comprehensive List of Saudi Arabia Drinking Water Industry, with a Focus on Berain Water
• Online Sales Revenue of Drinking Water in Saudi Arabia

Top Companies in the Saudi Arabia Drinking Water Industry

• Nestlé S. A.
• Hayat Water
• Al Hada Water Co. Ltd.
• Naqi Water
• Arwa
• Dome
• Tania
• Berain
• Al-Qassim Healthy Water
• Hana Water
• Al Ain Water
• Dala Company
• Fayha Water
• Safawater. qa
• Aquafina (PepsiCo, Inc.)
• Najed
• Nova
• Manahel
• Safa
• Mazen
• Al-Manhel
• Others

Industry by Categories

By Product Type:

• Still Drinking Water
• Carbonated Drinking Water
• Flavoured Drinking Water
• Functional Drinking Water
• Spring Water

By Water Resources:

• Surface Water
• Groundwater
  • Renewable Groundwater
  • Non-renewable Groundwater
• Non-Conventional Water Resources
  • Desalinated Seawater
  • Treated Wastewater

By Bottle Capacity:

• 100-300 ml
• 300-750 ml
• 1,000-1,500 ml
• 5,000 ml
• 15,000 ml
• 15,000-20,000 ml
• More than 20,000 ml

By End User:

• Commercial
  • Quick Service Restaurants
  • Fine Dining
  • Casual Dining
  • Cafes
  • Bars/Pub
• Residential

By Packaging Type:

• PET Bottle
• Glass Bottle
• Stand-up Pouches
• Retort Pouches

By Sales Channel:

• Direct
• Indirect
  • Hypermarkets/ Supermarkets
  • Departmental store
  • Convenience Store
  • Online Retailers
  • Drug Stores
  • Other Sales Channel

Frequently Asked Questions

What is the Sales Valuation of Drinking Water in Saudi Arabia as of 2024?

For the mentioned year, the sales generated from drinking water are going to be USD 5,717.70 million.

What is the Sales Forecast for Saudi Arabia Drinking Water for the Years Between 2024 and 2034?

Sales of drinking water are improving at an average of 7.9% in the forecast period.

How Big is the Industry Expected to be by 2034?

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.

Which Product Type is the Leading Segment in the Saudi Arabia Drinking Water Industry?

Functional water is going to remain a competitive segment in the regional industry.

Which Players in the Saudi Arabia Drinking Water Industry are Influential?

Hayat Water, Al Hada Water Co. Ltd., and Naqi Water, form the top tier companies in the Saudi Arabia drinking water industry.