Soft Drinks Sales Set To Grow

In per capita terms, consumption of soft drinks in the UAE are forecast to increase from an expected 355 litres in 201 2 to 390 litres in 2017 . B y our definition , the soft drinks category includes bottled water, carbonates, juices and functional drinks (energy drinks) . This is a solid volume outlook and is likely to be amplified by the premiumisation potential of the UAE market, with consumers increasingly trading up to more expensive brands.

Room For Growth Across Three Main Segments
UAE - Soft Drinks Sales (mn litres)

Reflecting the overall opportunity still inherent to the soft drinks industry in the UAE, we forecast soft drinks value sales in local currency terms to grow at compound annual rate of 10.1% to 2017. In US dollar terms, we see the size of the industry growing from an estimated US$3.6 bn in 2012 to US$5.7bn by 2017. I n Dubai in particular, where consumer preferences are arguably more aligned with Western tastes compared with other Gulf states or emirates , we expect demand for premium functional drinks, mainly energy drinks, to also grow strongly over the next few years from a relatively low base.


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