Middle East & Africa Non-Alcoholic Beverages Market

The non-alcoholic beverages market in Middle East & Africa is expected to grow from US$ 75.54 million in 2022 to US$ 107.27 million by 2028. It is estimated to grow at a CAGR of 6.0% from 2022 to 2028.

Rising Demand for Non-Alcoholic Beverages with Functional Benefits

Over the past few years, awareness regarding health and nutrition has increased significantly. Due to hectic working schedules and busy lifestyles, people cannot concentrate on their health and fitness. This has led to various health issues such as diabetes, obesity, skin diseases, eye problems, heart diseases, and cancer. The growing prevalence of such diseases has increased health awareness among consumers. Consumers are increasingly spending on health-boosting products to reduce the risk of chronic diseases. Functional beverages usually contain one or more nutrients such as proteins, vitamins & minerals, good carbs, and probiotics that address specific health concerns of consumers. They enhance the overall physical state of the body and reduce the risk of disease progression. Moreover, functional beverages keep the body well-hydrated and enhance immune health. Functional beverages also support targeted and personalized health goals such as weight management, enhancing gut and immune health, and improving skin and hair health. This factor has enhanced their popularity among consumers of various age groups. Functional beverages also help boost mood and control stress and fatigue. Many people deal with different kinds of stresses every day related to work, family issues, financial obligations, and health problems. According to a whitepaper published by Kerry Group Plc in 2021, 40% of adults experience stress every day. Stress leads to problems such as improper sleep, loss of appetite, headache and dizziness, and digestive problems, which cause significant harm to the body. People, especially the younger population, are extending their health priorities toward mental wellbeing and including functional beverages in their regular diet. Functional beverages are witnessing tremendous demand among all categories of non-alcoholic beverages, owing to their numerous benefits, which is propelling the overall growth of the Middle East & Africa non-alcoholic beverages market.

Market Overview

South Africa, Saudi Arabia, UAE, and rest of Middle East & Africa are the key contributors to the non-alcoholic beverages market in the Middle East & Africa. Energy drinks are becoming widely popular in the region as individuals indulge in more physical activities. The number of gym memberships is increasing in Middle Eastern countries, indicating that people are becoming more interested in staying fit. Moreover, fermented, and functional probiotic beverages, such as drinkable yogurt, kefir, and buttermilk, are popular among consumers in the region, while fortifying probiotic cultures in fruit and vegetable juices is one of the primary elements propelling the Middle East & Africa non-alcoholic beverages market. Drinkable yogurt is the most popular choice among Middle Eastern consumers. The probiotic drinks segment is also expected to witness many new buyers due to the growing concern about strengthening immunity. Consumers in Saudi Arabia and other gulf countries prefer coffee as it is their traditional drink. Saudi Arabia's Public Investment Fund (PIF) data indicates that coffee consumption in Saudi Arabia raised by ~4% a year between 2016 and 2021 and is expected to increase further by 5% annually to 2026, reaching an expected annual consumption of 26036.20 metric tons. However, as consumers pay for premium products, the demand for coffee is projected to grow significantly. RTD coffee is an excellent source of antioxidants and instant energy. Thus, it has gained immense traction among the region's youngsters and middle-aged working professionals. Brewed or extracted RTD coffee is available in hot or cold form. Manufacturers are trying to improve their sales and distribution network and focusing on introducing innovative products with different flavors to expand their business. For instance, in 2020, The Coca-Cola Company launched Coca-Cola with Coffee in Saudi Arabia, which combines regular Coke with Brazilian coffee. The product is available in three different flavors Dark Blend, Vanilla, and Caramel, which will be offered in 12-ounce cans. Thus, the rapidly increasing demand for RTD coffee in the Middle East & Africa is expected to favor the Middle East & Africa non-alcoholic beverages market growth over the forecast period.

Middle East & Africa Non-Alcoholic Beverages Market Revenue and Forecast to 2028 (US$ Million)

Middle East & Africa Non-Alcoholic Beverages Strategic Insights

Strategic insights for the Middle East & Africa Non-Alcoholic Beverages provides data-driven analysis of the industry landscape, including current trends, key players, and regional nuances. These insights offer actionable recommendations, enabling readers to differentiate themselves from competitors by identifying untapped segments or developing unique value propositions. Leveraging data analytics, these insights help industry players anticipate the market shifts, whether investors, manufacturers, or other stakeholders. A future-oriented perspective is essential, helping stakeholders anticipate market shifts and position themselves for long-term success in this dynamic region. Ultimately, effective strategic insights empower readers to make informed decisions that drive profitability and achieve their business objectives within the market.

Middle East & Africa Non-Alcoholic Beverages Report Scope

Middle East & Africa Non-Alcoholic Beverages Regional Insights

The geographic scope of the Middle East & Africa Non-Alcoholic Beverages refers to the specific areas in which a business operates and competes. Understanding local distinctions, such as diverse consumer preferences (e.g., demand for specific plug types or battery backup durations), varying economic conditions, and regulatory environments, is crucial for tailoring strategies to specific markets. Businesses can expand their reach by identifying underserved areas or adapting their offerings to meet local demands. A clear market focus allows for more effective resource allocation, targeted marketing campaigns, and better positioning against local competitors, ultimately driving growth in those targeted areas.

Middle East & Africa Non-Alcoholic Beverages Market Segmentation

The Middle East & Africa non-alcoholic beverages market is segmented into type, packaging type, category, distribution channel, and country.

Based on type, the market is segmented into carbonated soft drinks, juices & nectars, bottled waters, dairy-based beverages, dairy alternative beverages, RTD tea & coffee, and others. The carbonated soft drinks segment registered the largest market share in 2022.

Based on packaging type, the market is segmented into bottles, cartons, cans, and pouches. The bottles segment held a largest market share in 2022.

Based on category, the market is bifurcated into sugar-free and conventional. The conventional segment held the larger market share in 2022.

Based on distribution channel, the market is segmented into supermarkets & hypermarkets, convenience stores, online retail, and others. The supermarkets & hypermarkets segment held a largest market share in 2022.

Based on country, the market is segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. Rest of Middle East & Africa dominated the market share in 2022.

Asahi Group Holdings, Ltd.; Bolthouse Farms, Inc.; Califia Farms, LLC; Danone S.A.; Keurig Dr Pepper, Inc.; Nestlé S.A.; PepsiCo Inc.; Red Bull; SUNTORY HOLDINGS LIMITED.; and The Coca-Cola Company are the leading companies operating in the non-alcoholic beverages market in the Middle East & Africa region.