Saudi Arabias population is growing fast

Saudi Arabia's population is growing fast

Energy drinks will help grow Saudi Arabia's soft drinks market by 8% a year, according to reports.

Malt drinks and flavoured dairy products will also boost sales as new categories seep into the kingdom, the Saudi Gazette reported, citing research from Kantar Worldpanel. Kantar also said the new high-growth categories are fragmenting the Saudi beverage market.

However, Kantar added: “Though the ‘newer formats’ are gaining momentum, these categories are more inclined towards expats who seems to be the early adopters. Locals still prefer traditional beverages like coffee, concentrates and laban.”

Laban is a cold beverage of yoghurt mixed with water and salt.

Saudi Arabia has a population of 28m, which grows at 3% a year, or three times the global average, the report said.

To read a management briefing on drinks industry logistics in the Middle East, click here.