Water And Juices Leading The Way

Bottled water and fruit juice consumption really took off over 2002-2010, driven by rising income. Between them, water and fruit juices accounted for about two-thirds of the industry and we would expect this contribution to increase as growth in carbonates is not likely to do so to a significant extent . There is also arguably greater leeway for further premiumisation in juices and water compared with carbonates. Juices in partic ular look good in this respect.

In water, a big trend over the past few years has been the take-off in bulk water. Innovation and rising health-consciousness will continue to have strong influences over the next few years, which should be especially good for diet car bonates, juice and water sales.

Looking ahead, in Dubai in particular, where consumer preferences are arguably more aligned with Western tastes than with the Gulf region or even the UAE's other emirates, demand for premium functional drinks, mainly energy drinks, will also grow strongly over the next few ye ars from a relatively low base.

With this in mind, it is likely that leading producers of carbonates, such as the PepsiCo franchisee Dubai Refreshments Company , will tailor an increasingly higher proportion of their product development spending to non-core carbonate segments.

Great Room For Growth
UAE Fruit Juice Sales (US$mn) - Historic & Forecast

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