KSA carbonated soft drinks market size, share, growth drivers, trends, opportunities & forecast 2025–2030

Saudi Arabia Carbonated Soft Drinks Market Overview

• The Saudi Arabia Carbonated Soft Drinks Market is valued at USD 3.8 billion, based on a five-year historical analysis. This growth is primarily driven by increasing urbanization, a young population, and rising disposable incomes, which have led to higher consumption of carbonated beverages. Additionally, the introduction of innovative flavors and healthier options has further stimulated market demand.
• Key cities such as Riyadh, Jeddah, and Dammam dominate the market due to their large populations and significant commercial activities. These urban centers serve as major hubs for distribution and consumption, with a high concentration of retail outlets and food service establishments, making them critical to the growth of the carbonated soft drinks sector.
• The Saudi government has implemented the Excise Tax on Sugary Drinks, 2017 issued by the Ministry of Finance, which imposes a 50% tax on carbonated and energy drinks. This initiative is part of a broader public health strategy to combat obesity and related health issues, influencing consumer preferences and prompting manufacturers to innovate with lower-sugar and sugar-free alternatives.

Saudi Arabia Carbonated Soft Drinks Market Segmentation

By Type:The market is segmented into various types of carbonated soft drinks, including Regular Carbonated Soft Drinks, Diet Carbonated Soft Drinks, Flavored Carbonated Soft Drinks, Sparkling Water, and Others. Among these, Regular Carbonated Soft Drinks dominate the market due to their widespread popularity and brand loyalty among consumers. The increasing trend of health consciousness has also led to a rise in Diet Carbonated Soft Drinks, although they still hold a smaller share compared to regular options. Flavored Carbonated Soft Drinks and Sparkling Water are gaining traction as consumers seek variety and healthier alternatives.

By End-User:The end-user segmentation includes Retail Consumers, Food Service Industry, Vending Machines, and Others. Retail Consumers represent the largest segment, driven by the increasing availability of carbonated soft drinks in supermarkets and convenience stores. The Food Service Industry is also significant, as restaurants and cafes contribute to a substantial portion of sales. Vending Machines are becoming more popular in public spaces, providing easy access to beverages, while the 'Others' category includes various niche markets.

Saudi Arabia Carbonated Soft Drinks Market Competitive Landscape

The Saudi Arabia Carbonated Soft Drinks Market is characterized by a dynamic mix of regional and international players. Leading participants such as The Coca-Cola Company, PepsiCo, Inc., Almarai Company, Aujan Group Holding, Al-Nasr Beverages, Al-Faisal Beverage Company, Al-Jazeera Beverage Company, Al-Muhaidib Group, Al-Watania for Industry and Trade, Al-Baik Food Systems, Al-Safi Danone, Al-Hokair Group, Al-Mansour Group, Al-Jomaih Bottling Plants Co., Gulf Union Food Company contribute to innovation, geographic expansion, and service delivery in this space.

Saudi Arabia Carbonated Soft Drinks Market Industry Analysis

Growth Drivers

• Increasing Urbanization:Urbanization in Saudi Arabia is estimated at approximately 84% of the total population, according to the World Bank. This shift leads to lifestyle changes, including increased consumption of carbonated soft drinks. Urban areas typically have better access to retail outlets and a wider variety of beverage options, driving demand. The convenience of purchasing carbonated drinks in urban settings further fuels this growth, as consumers seek quick refreshment options amid busy lifestyles.
• Rising Disposable Incomes:The average disposable income in Saudi Arabia is expected to rise to approximately SAR 90,000 (around USD 24,000) per capita in future, as reported by the Saudi Arabian Monetary Authority. This increase allows consumers to spend more on non-essential items, including carbonated soft drinks. As disposable incomes grow, consumers are likely to indulge in premium beverage options, enhancing market growth and diversifying product offerings.
• Expanding Retail Channels:The number of retail outlets in Saudi Arabia is projected to increase by 20% in future, driven by the growth of supermarkets and convenience stores. This expansion provides greater accessibility to carbonated soft drinks, catering to a wider audience. Enhanced distribution networks and the rise of e-commerce platforms also facilitate easier access to a variety of beverage brands, further stimulating market growth and consumer choice.

Market Challenges

• Health Concerns Related to Sugar Consumption:With rising health awareness, the Saudi population is increasingly concerned about sugar intake. The World Health Organization recommends limiting sugar consumption to less than 10% of total daily calories. This shift in consumer behavior poses a challenge for carbonated soft drink manufacturers, as they must adapt their product lines to meet the demand for healthier options while maintaining taste and brand loyalty.
• Regulatory Restrictions on Sugary Beverages:The Saudi government has implemented regulations, including a sugar tax of SAR 0.75 per liter on sugary drinks, effective since 2017. This tax aims to reduce sugar consumption and combat obesity. Such regulations can negatively impact sales volumes and profit margins for carbonated soft drink companies, forcing them to innovate and reformulate products to comply with health guidelines and consumer preferences.

Saudi Arabia Carbonated Soft Drinks Market Future Outlook

The future of the Saudi Arabia carbonated soft drinks market appears promising, driven by evolving consumer preferences and innovative product offerings. As health-conscious trends continue to rise, manufacturers are likely to focus on low-calorie and sugar-free alternatives. Additionally, the expansion of e-commerce platforms will facilitate greater market penetration, allowing brands to reach untapped demographics. Strategic partnerships with local distributors will also enhance distribution efficiency, ensuring that products are readily available to consumers across various regions.

Market Opportunities

• Introduction of Healthier Beverage Options:There is a significant opportunity for brands to develop and market healthier beverage alternatives, such as low-sugar and organic carbonated drinks. With health trends on the rise, products that cater to these preferences can capture a growing segment of health-conscious consumers, potentially increasing market share and brand loyalty.
• Expansion into Untapped Rural Markets:Rural areas in Saudi Arabia present a largely untapped market for carbonated soft drinks. As infrastructure improves and disposable incomes rise, brands can strategically target these regions. Establishing a presence in rural markets can lead to increased sales and brand recognition, contributing to overall market growth.