In 2021, the U.A.E. packaged drinking water market generated revenue of $625.4 million, and it is projected to grow by 4.7% in the coming years, ascribed to the population explosion, rising tourism sector, and growing demand for functional and flavored water in the country. An adult consumes around 34 gallons per year in the country, signifying the proliferation of the packaged water industry in the near future. Thus, the sale of packaged drinking water in the country will reach $948.2 million by 2030.
Moreover, the U.A.E. packaged drinking water market is predicted to grow in the next few years, ascribed to the proliferation of the hospitality industry, due to major tourism and leisure destinations located in the country. For instance, the travel and tourism industry of India contributed around $49.1 billion to the economy of the country, amounting to 11.6% of the GDP.
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The rise in the population of the U.A.E. results in an increasing demand for drinking water for domestic, commercial, and industrial needs boosting the U.A.E. packaged drinking water market. According to the Department of Economic and Social Affairs, Population Division, of the U.N., the population of the U.A.E. was around 9,890,400 in 2020, which accounts for 0.13% of the world’s population. An increase of 1.2% in the population of the country was witnessed in the pandemic year. More water facilities are required to cater to the requirements of the growing population, resulting in market propulsion.
The B2B distribution channel contributes significantly to the market, accounting for 72.8% revenue share, attributed to the rising penetration of the corporate offices in the country. For example, around 16,000 new companies joined Dubai Chamber in the first two quarters of 2021, with a total membership of more than 275,000.
The online distribution channel is projected to rise at over 10% rate in the coming future, propelling the U.A.E. packaged drinking water market. Moreover, U.A.E. retailers are highly investing in digital sale channels at a fast rate led by the development of the catalog of online products. According to ITA, an increase of 53% was witnessed in online sales in 2020, amounting to be $3.9 billion. Moreover, e-commerce contributed around 10% of the total retail sales of the country, reflecting a rise in online shopping preference among residents.
In addition, packaged bulk drinking water holds around 33.1% revenue share of the U.A.E. packaged drinking water market, owing to their rising consumption in offices for drinking purposes. The strict regulations for employee health drive the demand for packaged drinking water in the country. For example, the Ministry of Human Resources & Emiratisation has warned companies that access to drinking water must be provided to workers at all times.
There is an insufficiency of safe water for human consumption in many parts of the country, due to the presence of harmful chemicals found on the earth’s surface, resulting in contamination of water by seep or pathogenic microorganisms. The consumption of such water may lead to numerous water-borne diseases, such as major parasitic infections, therefore, to prevent such diseases, the consumption of packaged drinking water is highly preferred.
Therefore, the insufficiency of consumable water in the country leads to an increased demand for packaged drinking water and hence results in market propulsion.
