Saudi Arabia Non-Alcoholic Drinks Market By Product Type (Bottled Water, Fruit Juices & Flavored Drinks, Carbonated Soft Drinks, Functional/Energy & Sports Drinks, Others), By Packaging (Bottles, Cans, Cartoons, Others), By Distribution Channel (Convenience Stores, Supermarket/Hypermarket, Online, Departmental Stores, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Saudi Arabia Non-Alcoholic Drinks market was valued at USD 10.34 Billion in 2024 and is expected to grow to USD 14.56 Billion by 2030 with a CAGR of 5.87%. The Saudi Arabia Non-Alcoholic Drinks market is primarily driven by increasing health awareness among consumers, who are opting for healthier alternatives to sugary and carbonated drinks. This shift is spurred by rising concerns over obesity, diabetes, and other health-related issues, particularly among the younger population. Also, the growing demand for functional beverages, including energy drinks, fortified juices, and plant-based drinks, is contributing to market growth. The country's economic development, coupled with rising disposable incomes, has also enabled consumers to spend more on premium and organic non-alcoholic beverages. Also, the changing lifestyle, influenced by the young, urban, and tech-savvy demographic, has led to a demand for convenient and ready-to-drink beverages. Government initiatives to promote healthier diets are also encouraging this market transformation.

Key Market Drivers

Rising Sports Participation Across the Region

Rising sports participation across Saudi Arabia is significantly driving the non-alcoholic drinks market. As a part of this, according to a recent study, as of April 2025, the Kingdom's sports participation percentage has increased from 13% to 48%. As physical activity becomes more integrated into the lifestyle of the population, particularly among the youth, the demand for beverages that support active and healthy living has surged. Government initiatives, such as Vision 2030, have promoted sports and fitness through various programs, leading to increased participation in activities like running, gym workouts, and team sports. This, in turn, has fueled demand for drinks like sports drinks, energy drinks, and functional beverages designed to enhance performance, support hydration, and aid recovery. Sports drinks, rich in electrolytes, and energy drinks, offering quick boosts of energy, are particularly popular. Also, plant-based drinks and functional beverages, with added benefits such as vitamins and antioxidants, are gaining traction. As more people engage in regular physical activity, the non-alcoholic drinks market is adapting to meet the evolving needs of fitness-conscious consumers.

Growing Consumption of Fruit Juices

The growing consumption of fruit juices is a key driver of the non-alcoholic drinks market in Saudi Arabia. As a part of this, according to a recent study, as of 2024, juice sales off-trade have climbed by 2% to 712 million liters, and a strong compound annual growth rate (CAGR) of 4% is predicted to fuel continued expansion during the projected period. With increasing health awareness, consumers are turning to fruit juices as a healthier alternative to sugary sodas and carbonated drinks. The demand for natural, nutritious beverages is rising, as fruit juices are seen as rich in vitamins and antioxidants, offering hydration and health benefits. Also, the convenience of ready-to-drink fruit juices caters to the fast-paced lifestyle of urban dwellers, making them a popular choice for on-the-go consumption. Innovations in the market, such as the introduction of new flavors and 100% natural juice options, are also fueling this growth. Traditional drinks like Qamar al-Din and Tamarind Sharbat further influence the consumption of fruit juices, especially during cultural and religious events. As these trends continue, fruit juices are solidifying their position as a dominant segment within Saudi Arabia's non-alcoholic drinks market.

Growing Disposable Income

The growing disposable income in Saudi Arabia is a significant driver of the non-alcoholic drinks market. As a part of this, according to a recent study, as of 2023, the average monthly disposable income for households was USD 3156.49; for Saudi households, it was USD 4814.05, and for non-Saudi households, it was USD 1447.20.As the country's economy continues to develop and household incomes rise, consumers are increasingly able to spend more on premium, healthier, and innovative beverages. This shift in spending behavior is evident in the growing demand for organic drinks, functional beverages, and products with added health benefits such as vitamins, antioxidants, and electrolytes. With higher purchasing power, consumers are also willing to invest in higher-quality drinks, such as plant-based alternatives, natural fruit juices, and fortified waters, as they align with their health-conscious lifestyles. Also, the rising income levels enable greater access to a wider variety of non-alcoholic drink options, catering to diverse tastes and preferences. As disposable income continues to grow, it is expected that consumers will further drive demand for more premium, convenient, and health-focused non-alcoholic beverages in the Saudi market.

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Key Market Challenges

Increased Competition from Local and International Brands

Increased competition from both local and international brands is a significant challenge in Saudi Arabia’s non-alcoholic drinks market. As the market continues to grow, both established global players and emerging local brands are striving to capture consumer attention and market share. International brands bring extensive experience, global recognition, and the ability to offer a wide range of products, which can make it difficult for local brands to compete. On the other hand, local brands often have the advantage of cultural familiarity and tailored products that cater to regional tastes and preferences, such as traditional beverages like Qamar al-Din. This intense competition forces companies to continually innovate and differentiate their offerings through unique flavors, healthier alternatives, and premium options. Also, pricing strategies play a crucial role, as both local and international brands must balance quality with affordability to appeal to a diverse consumer base. The competition drives market dynamics but also poses significant pressure on companies.

Regulatory Challenges

Regulatory challenges pose a significant hurdle in Saudi Arabia's non-alcoholic drinks market. The government enforces strict regulations concerning labeling, health claims, and product composition, particularly focusing on sugar content, preservatives, and additives. As health consciousness increases, the government has imposed tighter controls on sugary beverages, which has led to reforms in labeling and packaging requirements, aiming to provide clearer nutritional information to consumers. Non-alcoholic drink manufacturers must also navigate regulations around product fortification and marketing, ensuring compliance with local standards to avoid penalties. Also, restrictions on ingredients deemed unhealthy, like high fructose corn syrup or excessive artificial additives, have pushed companies to reformulate products, which can be costly and time-consuming. These regulations can be particularly challenging for international brands, which may need to adjust their products to meet local requirements. Navigating these complex and evolving regulatory frameworks is essential for companies to maintain market access and avoid disruptions in supply chains.

Key Market Trends

Increasing Focus on Sustainable Packaging

The increasing focus on sustainable packaging is a significant trend shaping Saudi Arabia's non-alcoholic drinks market. As environmental awareness grows among consumers, beverage companies are adopting eco-friendly packaging solutions to meet demand and align with global sustainability goals. This shift includes the use of recyclable materials, biodegradable packaging, and innovative designs that minimize environmental impact. For instance, the Saudi beverage packaging market is experiencing a transition toward sustainable practices, with companies investing in recyclable and biodegradable materials to reduce plastic waste. Also, advancements in packaging technology, such as smart packaging with interactive labels and temperature indicators, are enhancing consumer experience and brand differentiation. The government's initiatives to promote recycling and reduce plastic usage further encourage manufacturers to adopt sustainable packaging practices. This trend not only caters to the environmentally conscious consumer but also positions companies as responsible and forward-thinking in a competitive market.

Increased Preference for Online Shopping

The increasing preference for online shopping is a significant trend influencing Saudi Arabia's non-alcoholic drinks market. As a part of this, according to a recent study, as of 2024, between 2020 and 2025, e-commerce in Saudi Arabia's retail industry is projected to triple, with compound annual growth of 15%. E-commerce platforms offer consumers the convenience of purchasing a wide variety of beverages from the comfort of their homes, often with the added benefit of home delivery. This shift towards online shopping is particularly appealing to the tech-savvy, urban population, who value efficiency and accessibility. Retailers and brands are responding by enhancing their online presence, offering exclusive online deals, and providing detailed product information to attract and retain customers. The growth of online grocery shopping in Saudi Arabia, including non-alcoholic beverages, is expected to continue, driven by factors such as improved digital infrastructure, changing consumer behavior, and the increasing availability of delivery services. This trend is reshaping the retail landscape and presenting new opportunities and challenges for businesses in the non-alcoholic drinks sector.

Rise of Plant-Based Alternatives

The rise of plant-based alternatives is a significant trend shaping Saudi Arabia's non-alcoholic drinks market. As health-conscious consumers become more aware of the benefits of plant-based diets, there has been a growing demand for plant-based beverages such as almond milk, oat milk, soy milk, and coconut water. These drinks cater to individuals who are lactose intolerant, vegan, or simply prefer dairy-free options. The increasing popularity of plant-based diets, driven by both health and environmental concerns, is pushing beverage companies to innovate and expand their product lines to include plant-based alternatives. These drinks are not only seen as healthier options, offering lower calories and no cholesterol, but they also appeal to a wider consumer base looking for natural and organic ingredients. In response, brands are introducing new flavors, fortified versions with added vitamins and minerals, and unique blends to meet the diverse preferences of Saudi consumers..

Segmental Insights

Product Type Insights

Carbonated Soft Drinks dominated the Saudi Arabia Non-Alcoholic Drinks market, driven by factors such as cultural preferences, strong brand loyalty, and affordability. CSDs are deeply ingrained in the social fabric, often consumed during gatherings, celebrations, and daily routines. The availability of a wide variety of flavors, along with the presence of well-established global brands like Coca-Cola and PepsiCo, makes them a popular choice among consumers. Despite increasing health concerns and a gradual shift towards healthier beverages, CSDs remain favored due to their convenience, refreshing taste, and cost-effectiveness. The affordability of these drinks, even with the implementation of excise taxes, ensures their continued prominence in the market, particularly among younger demographics who have grown up with these beverages as a staple.

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Regional Insights

Western region dominated the Saudi Arabia Non-Alcoholic Drinks market, due to a combination of factors. The region is home to a large and diverse population, with Jeddah being a major commercial and economic hub that drives demand for a variety of beverages. Also, the cultural and religious significance of Mecca and Medina, attracting millions of pilgrims each year, significantly boosts beverage consumption, especially during religious events. The region also benefits from a thriving tourism and hospitality industry, with an influx of both domestic and international visitors, further increasing demand for non-alcoholic drinks. This mix of population density, economic activity, and cultural importance makes the Western region a key player in Saudi Arabia’s beverage market. Also, the Northern & Central regions also contribute significantly to the non-alcoholic drinks market, driven by factors such as urbanization, economic development, and cultural preferences. Riyadh, the capital city in the Central region, is a major economic and business center, leading to higher disposable incomes and a growing demand for diverse beverage options.

Recent Developments

• In February 2025, iPRO, a global leader in healthy hydration,  launched in Saudi Arabia through a strategic partnership with Al Rabie, one of the Kingdom's leading beverage companies. This collaboration brings iPRO Hydrate’s innovative, naturally hydrating products to Saudi consumers.
• In March 2025, Pernod Ricard, has expanded its premium non-alcoholic portfolio into the Middle East, addressing the growing demand for refined and inclusive beverage choices in the region.The launch focuses on the UAE, Saudi Arabia, and Kuwait, providing consumers with sophisticated alcohol-free alternatives for social gatherings.
• In December 2024, Saudi Arabian company Turath Al-Madina has introduced Milaf Cola, claimed to be the world’s first soft drink made from dates, a key ingredient in traditional Middle Eastern beverages like sharbat. The drink is positioned to compete with leading cola brands, particularly as consumers increasingly avoid brands with ties to Israel.

Key Market Players  

• Nestle S.A.
• Aujan Group Holding
• PepsiCo, Inc.
• The Coca‑Cola Company
• AlSafi Danone
• Hana Water Company
• USM Business Systems
• Al-Hijaz Water Co. Ltd
• Akoya Water
• Almarai Company

Report Scope:

In this report, the Saudi Arabia Non-Alcoholic Drinks Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•   Saudi Arabia Non-Alcoholic Drinks Market, By Product Type:

o   Bottled Water

o   Fruit Juices & Flavored Drinks

o   Carbonated Soft Drinks

o   Functional/Energy & Sports Drinks

o   Others

• Saudi Arabia Non-Alcoholic Drinks Market, By Packaging:

o   Bottles

o   Cans

o   Cartoons

o   Others

• Saudi Arabia Non-Alcoholic Drinks Market, By Distribution Channel:

o   Convenience Stores

o   Supermarket/Hypermarket

o   Online

o   Departmental Stores

o   Others

• Saudi Arabia Non-Alcoholic Drinks Market, By Region:

o   Eastern

o   Western

o   Northern & Central

o   Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Saudi Arabia Non-Alcoholic Drinks Market.

Available Customizations:

Saudi Arabia Non-Alcoholic Drinks Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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