Saudi Arabia’s Bottled Water Market Poised for Growth Amid Urbanization and Tourism Expansion

The bottled water industry in Saudi Arabia is set for sustained growth, driven by population increases, rapid urbanization, and an expanding tourism sector, experts told Arab News.

Market research firm Imarc Group projects that the Kingdom’s bottled water market will reach $5.5 billion by 2034, reflecting a compound annual growth rate of 7.7 percent from 2026. Analysts say this outlook aligns with broader economic shifts under Saudi Arabia’s Vision 2030, with rising urbanization and tourism supporting long-term demand.

“The Saudi bottled water market is growing, driven by population expansion, urbanization, and a growing tourism sector, all of which are tied to their Vision 2030,” said Francois de Bie, chief commercial officer at Emirates Biotech. “As the drivers for growth are supported by the Kingdom’s long-term vision, the growth is expected to continue.”

The sector’s resilience is also linked to the country’s climate and water scarcity. Hossam Ezzat, quality manager at Hana Co. for Food Industries, noted that growth in bottled water is estimated at approximately 6 to 8 percent annually due to limited natural freshwater resources. He added that population growth and the expansion of tourism and hospitality are contributing factors.

Recent financial results highlight the sector’s strength. Al-Jouf Mineral Water Bottling Co., listed on Saudi Arabia’s parallel market Nomu, reported a net profit of SR4.36 million ($1.16 million) in 2025, marking a 51.87 percent increase compared to the previous year.

Thomas Kuruvilla, managing partner of Arthur D. Little Middle East & India, described bottled water as one of the region’s most resilient consumer categories. “The future of the Kingdom’s bottled water market will be shaped by a mix of international players and strong local brands, with the latter bringing valuable insight into consumer preferences and cultural context,” he said.

Sustainability is becoming a central concern for industry players, especially in light of the Saudi Green Initiative. De Bie said that brands are facing pressure to balance growth with environmental responsibility. “The challenge for the industry is separating market growth from plastic pollution,” he noted. Ezzat highlighted industry efforts to reduce plastic usage, including lightweight PET bottles, recycling programs, and introducing glass bottles. Kuruvilla emphasized that progress in recycling and waste management will be key to maintaining credibility in sustainability commitments.

Consumer trends are also evolving, with a growing preference for premium, mineral, and alkaline water, as well as flavored and carbonated options. E-commerce and home delivery are expanding as distribution channels, while packaging innovations focus on lighter, more eco-friendly solutions. De Bie added that younger consumers are increasingly eco-conscious, seeking convenience without environmental guilt, pushing brands to adopt sustainable packaging.

The combination of population growth, tourism expansion, climate conditions, and rising environmental awareness positions Saudi Arabia’s bottled water market for continued growth, supported by Vision 2030 initiatives and evolving consumer demand.