Market Trends of Gulf Cooperation Council (GCC) Bottled Water Industry
This section covers the major market trends shaping the Gulf Cooperation Council (GCC) Bottled Water Market according to our research experts:
Scarce Water Resources Leading to Increasing Dependency on Packaged Drinking Water
The most water-scarce region in the world is the Middle-East & North Africa region (MENA), including GCC, where more than 60% of the population has little or no access to drinkable water. Over 70% of the region's gross domestic product (GDP) is exposed to high or very high-water stress, which is extreme compared to the global average of 22%. According to the World Bank, the MENA region also has the greatest expected economic losses from climate-related water scarcity, estimated to account for 6-14% of GDP by 2050. This scarcity poses a significant threat to the region's long-term socio-economic development. The deep scarcity of drinkable water has been an issue due to water scarcity and unavailability of treated water, which is leading to the high dependency on bottled water and packed forms of drinking water across the GCC region.
Saudi Arabia Holds the Largest Market Share
The Saudi Arabian bottled water market has witnessed significant growth due to the growing tourism industry. Moreover, the number of foodservice channels, such as hotels and restaurants, is also increasing in the country. Therefore, to offer quality service to tourists, these channels are also contributing to a high share of sales in the bottled water market. Additionally, Saudi Arabia is a large industry for bottled water as consumers are becoming aware of the advantages of drinking bottled water rather than consuming tap water provided by local bodies. The increasing disposable incomes and a significant rise in the population rate are further expected to indirectly boost the demand for bottled water across the region.
