Gulf Cooperation Council (GCC) Bottled Water Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Gulf Cooperation Council (GCC) Bottled Water Market Trends and Insights

Extreme climatic conditions drive structural demand

In the GCC, where extreme climatic conditions prevail, traditional water infrastructure is inadequate to meet critical hydration demands. Qatar, identified as the world's most water-stressed country with a 2023 Baseline water stress score of 5 by the World Resources Institute^{[1]Source: World Resources Institute, "Country Rankings", www.wri.org}, highlights the role of bottled water as an essential infrastructure rather than a discretionary expense. Bahrain indicates that urban development projects exacerbate thermal stress and increase water consumption, showcasing the impact of urban heat island effects in the region. With temperatures often exceeding human tolerance levels, portable hydration becomes indispensable for outdoor workers and tourists. Due to limited local freshwater availability and the often poor taste or safety of tap water, residents and businesses heavily depend on bottled water as a reliable hydration source. Rising temperatures further drive the preference for ready-to-drink bottled water for use at home, in offices, and on the go, underscoring the significance of convenience.

Government water quality initiatives reshape market standards

Regional governments are introducing comprehensive water security frameworks, which are indirectly driving the demand for bottled water by addressing quality standards and infrastructure deficiencies. In March 2025, the GCC launched a regional water security task force, supported by USD 58 billion in environmental investments made between November 2024 and March 2025, showcasing significant policy coordination. Saudi Arabia's SWCC, acknowledged as the world's leading producer of desalinated water, achieved a daily production of over 11.5 million cubic meters in 2024^{[2]Source: Saline Water Conversion Corporation (SWCC). "SWCC achieves nine Guinness World Records", www.swcc.gov.sa}, according to the Saline Water Conversion Corporation (SWCC). Additionally, Bahrain's Electricity and Water Authority is actively encouraging residential water conservation while aiming for net-zero carbon emissions by 2060. This approach is fostering a perception of quality that benefits premium bottled water. Harmonized standards and certification systems streamline regulatory processes, facilitating market expansion and attracting international brands adhering to GCC norms. Government-led water quality initiatives bolster the safety and sustainability of bottled water products, enhancing consumer trust and fueling industry growth. While these initiatives elevate entry barriers for producers and foster innovation, they also steer the GCC bottled water market towards becoming a more standardized, trustworthy, and eco-conscious sector.

Health consciousness accelerates sugar-free beverage migration

The introduction of a 50% excise tax on sugar-sweetened beverages (SSBs) in Saudi Arabia and the UAE has significantly transformed beverage consumption patterns, with bottled water emerging as the primary alternative. WHO findings reveal a substantial reduction in SSB consumption and a decline in obesity rates among children and adolescents following the tax's implementation, marking a shift towards water-based hydration. This regulatory measure aligns with increasing health awareness, driving strong growth in functional and enhanced water segments, which are projected to grow at a 10.14% CAGR. The tax's success in reducing sugar intake has led to lasting behavioral changes, with health-conscious urban consumers increasingly choosing bottled water over traditional soft drinks. Premium water segments are experiencing notable benefits as consumers redirect spending from high-margin carbonated beverages to enhanced hydration options. The likelihood of this policy being adopted by other GCC countries suggests a sustained shift in demand toward water-based alternatives.

Tourism and pilgrimage expansion multiplies consumption touchpoints

The expansion of tourism and pilgrimage activities in the GCC region is driving significant growth in the bottled water market. In 2024, Qatar recorded 5 million visitors and nearly 10 million room nights, with 41% of these visitors being GCC nationals^{[3]Source: Qatar Tourism, "2024: A Year of Milestones for Qatar Tourism", www.qatartourism.com}, highlighting the impact of intra-regional tourism on bottled water demand. The UAE is witnessing an 11% annual growth in tourism investments, projected to reach USD 20.3 billion by 2027, according to the UAE's Ministry of Economy^{[4]Source: Ministry of Economy and Tourism, "Local addressable Market", www.moet.gov.ae}. This growth indicates a consistent demand for portable hydration solutions across various hospitality venues. Events such as the AFC Asian Cup and Formula 1 Grand Prix not only cause consumption surges but also establish new baseline demand levels as tourism infrastructure develops further. In Saudi Arabia, the pilgrimage sector, particularly during Hajj and Umrah, emphasizes the need for high-quality and portable water to meet the seasonal demands of religious observances. Tourists and pilgrims rely on bottled water at hotels, airports, restaurants, cafes, public events, and pilgrimage sites. The expansion of these venues increases the number of touchpoints for bottled water sales. Additionally, large-scale events, including expos, sports events, and religious pilgrimages, contribute to short-term spikes in bottled water consumption.

PET waste regulations create packaging transition costs

The Dubai Can initiative aims to eliminate single-use plastic bottles in the hospitality sector. UAE residents' bottled water consumption significantly contributes to greenhouse gas emissions from PET production and disposal, prompting government actions such as waste separation mandates and the establishment of recycling facilities. As the initiative gains momentum in the hospitality sector, it pressures retail channels to comply, pushing manufacturers to adopt alternative packaging solutions despite higher unit costs. Regulatory progress is highlighted by collaborations like Majid Al Futtaim's partnership with Coca-Cola Middle East and Sparklo, which targets the collection of 1.8 million bottles annually through Reverse Vending Machines. The UAE Circular Economy Policy 2031 indicates a potential shift from voluntary compliance to mandatory packaging standards. Companies face transition costs as they move toward aluminum and glass alternatives, with Agthia Group tripling its glass-bottled water production capacity to meet evolving regulatory demands.

Water resource limitations constrain production scalability

GCC countries are dealing with significant water scarcity, heavily relying on desalination and groundwater extraction. However, both methods have limited capacities and environmental challenges, restricting the raw water supply for bottled water production. Saudi Arabia's forecasted demand for 18 billion cubic meters of fresh water annually by 2050 highlights resource pressures that could hinder the bottled water industry. The region's unsustainable agricultural water usage competes directly with industrial requirements, including bottled water production, as renewable resources primarily come from groundwater. Climate change worsens water stress by driving up demand and degrading water quality, creating supply chain risks for manufacturers dependent on reliable water inputs. To address the financial, environmental, and operational challenges associated with water access and desalination reliance, companies must prioritize strategic risk management.

Segment Analysis

By Product Type: Functional Waters Challenge Still Water Dominance

Still Water retained a 76.84% revenue hold in 2024, yet functional and enhanced variants are tracking a 10.14% CAGR as wellness trends intensify. That trajectory mirrors the 50% beverage-tax policy that moved spending toward premium, low-calorie hydration. Functional recipes incorporating vitamins and electrolytes resonate with health-conscious millennials, while sparkling options cater to on-premise occasions. The GCC bottled water market size for functional formats is forecast to advance steadily on the back of higher unit margins and tourism-led exposure.

Despite its maturity, the Still segment benefits from broad price accessibility and entrenched consumer trust, especially in Saudi Arabia, where mass retail penetration is deepest. Marketers differentiate through mineral content origin stories and sustainability claims on source protection. Cross-promotions with sports events and religious gatherings also sustain baseline demand, ensuring the GCC bottled water market continues to anchor on core Still volumes even as functional innovation attracts discretionary spending.

Note: Segment shares of all individual segments available upon report purchase

By Packaging Size: Mid-Range Formats Drive Convenience

Bottles between 331 ml and 500 ml delivered 39.84% of 2024 sales, capitalizing on portability during daily commutes and outdoor work shifts. These sizes are well-suited for on-the-go hydration, matching typical daily consumption needs. Their convenience has made them popular in offices, schools, hospitals, and retail environments. At the same time, households are increasingly opting for 501–1000 ml packs, which are the fastest-growing segment with an 8.30% CAGR, supported by e-commerce subscriptions enabling regular doorstep deliveries. As quick-commerce operators focus on SKUs that balance weight and economic efficiency, the share of these mid-range packs in the GCC bottled water market is expected to grow.

Institutional buyers, such as hospitals and labor camps, continue to purchase large 5-gallon dispensers, but single-serve volumes are gaining traction due to their higher per-liter margins and increased brand-switching. To adapt to these trends, Saudi factories have upgraded their filling lines to accommodate various pack sizes, ensuring they meet the shifting demands of retail and on-trade markets. Retail channels, which dominate the region, maintain significant stock of these sizes, particularly during sales peaks driven by seasonal events and growing urbanization.

By Packaging Material: Aluminum Gains Amid Sustainability Pressure

In 2024, PET (polyethylene terephthalate) accounted for a dominant 78.01% market share, supported by its extensive resin availability and robust recycling infrastructure. PET bottles, known for being lightweight and portable, are ideal for on-the-go consumption in regions with hot, arid climates and active lifestyles. At the same time, regulatory measures have driven aluminum cans and bottles to achieve a notable 8.71% CAGR, supported by consumer perceptions of their infinite recyclability. Producers with early investments in aluminum capabilities can leverage the widening price gaps with virgin PET, particularly under green-tax scenarios.

Manufacturing and transporting PET bottles is cost-efficient, resulting in competitive retail pricing—a critical factor influencing consumer purchasing behavior. Conversely, glass packaging, despite its higher cost, is experiencing a revival in the premium hospitality sector. Here, features like taste neutrality and reusable aesthetics justify the higher price point. This shift is especially evident in the UAE, where Dubai's "Can" initiative emphasizes minimum recycled-content thresholds, which could diminish PET's cost advantage over time.

Note: Segment shares of all individual segments available upon report purchase

By Distribution Channel: Off-Trade Dominance Meets On-Trade Revival

In 2024, supermarkets, hypermarkets, and convenience outlets contributed 60.89% of total revenue, highlighting Gulf households' inclination toward weekly stock-ups and promotional bundles. Off-trade channels, known for providing economical multi-packs and larger packaging sizes, effectively meet the needs of value-conscious families and businesses. On the other hand, on-trade sales, covering hotels, cafés, and restaurants, are recovering, growing at an 8.18% CAGR, driven by the normalization of international arrivals. Rapid-delivery apps have introduced subscription models, boosting the GCC bottled water market through mobile-based impulse and bulk orders.

In Qatar and the UAE, hospitality operators are increasingly choosing aluminum and glass variants to meet the eco-label requirements preferred by global booking platforms. At the same time, home-and-office delivery services are adopting fleet electrification to simplify last-mile sustainability audits, strengthening their role in corporate procurement. Off-trade channels dominate the GCC bottled water market due to their convenience, wide product variety, extensive physical presence, suitability for bulk purchases, and efficient distribution, all aligning with local consumer behaviors and lifestyles.

Geography Analysis

In 2024, Saudi Arabia holds a leading 31.25% market share, leveraging its position as the GCC's largest and most populous economy to boost bottled water consumption across diverse demographics. Pilgrimage tourism, particularly during Hajj and Umrah, drives seasonal demand spikes as visitors prioritize water quality and portability. The Saudi Water Authority ensures safety and sustainability standards, supporting industry growth while addressing resource challenges. Almarai's USD 280 million acquisition of Pure Beverages Industry highlights consolidation trends that strengthen market positions.

The United Arab Emirates is projected to achieve the fastest regional growth, with an 8.76% CAGR through 2030. This growth is driven by a thriving tourism sector, an expanding expatriate population, and a preference for premium products in urban areas. Dubai Can's initiative to reduce PET bottles exemplifies regulatory innovation, influencing regional packaging standards and material choices. Additionally, the preference among UAE students for bottled water over tap water reflects a perceived quality gap, sustaining market demand.

Emerging markets such as Qatar, Kuwait, Bahrain, and Oman exhibit distinct consumption drivers and infrastructure needs. Qatar, as the world's most water-stressed nation, relies on bottled water to ensure supply security and quality. Kuwait and Bahrain benefit from intra-regional trade and cater to expatriates seeking familiar consumption patterns. Oman's participation in renewable energy-powered desalination projects highlights its focus on sustainability, shaping packaging and production standards.