Alcoholic Drinks Packaging in

Saudi Arabia
Euromonitor International
September 2023
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LIST OF CONTENTS AND TABLES

KEY DATA FINDINGS.................................................................................................................. 1
2022 DEVELOPMENTS ............................................................................................................... 1
Alcoholic drinks packaging seeing positive growth in both the foodservice and retail channels
in 2022 ...................................................................................................................................... 1
Glass bottles dominate non-alcoholic beer packaging in saudi arabia...................................... 1
Alcoholic drinks packaging in saudi arabia still limited to 330ml, 355ml and 500ml bottles or
cans .......................................................................................................................................... 2
PROSPECTS AND OPPORTUNITIES......................................................................................... 2
In-bound tourism to boost volume sales of no-alcohol beverages ............................................ 2
New non-alcoholic offerings could bring new pack types .......................................................... 2

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ALCOHOLIC DRINKS PACKAGING IN

SAUDI ARABIA
KEY DATA FINDINGS
▪ Total packaging retail volumes rise by 4% in 2022 to 137 million units
▪ Glass is the best performing pack type in 2022, with total packaging retail volumes rising by
4% to 125 million units
▪ Total packaging retail volumes are set to rise at a CAGR of 3% over the forecast period to
156 million units

2022 DEVELOPMENTS

Alcoholic drinks packaging seeing positive growth in both the

foodservice and retail channels in 2022
Since alcohol consumption is prohibited in Saudi Arabia under Sharia law, the alcoholic drinks
packaging industry is entirely represented by non-alcoholic beverages, and non-alcoholic beer
in particular. These malt-based beverages come in a variety of flavours and are widely
consumed in Saudi Arabia. However, the arrival of COVID-19 in Saudi Arabia resulted in
declining packaging unit volume sales of non-alcoholic beer in both the foodservice and retail
channels. While the retail channel recorded modest positive growth in 2021, the foodservice
channel continued to see declining unit volumes in this year, with economic uncertainties adding
to the negative impact of any lingering COVID-19 restrictions. Non-alcoholic beer is a
discretionary expense that some Saudi Arabian consumers have been avoiding, although, in
2022, there was positive growth in unit volumes in both channels, although both were still below
their pre-pandemic sales levels. The packaging unit volumes of both glass bottles and metal
beverage cans were increasing in 2022.
Both channels are expected to see positive growth rates throughout the forecast period,
although, while retail unit volume sales will return to pre-pandemic levels in 2024, foodservice
unit volumes will not reach 2019 levels again before the end of forecast period. Sales of non-
alcoholic beer, and also therefore alcoholic drinks packaging, had returned to positive growth in
2019 after a very strong off-trade sales decline a year earlier. This was the result of the
departure of numerous Western expatriates from Saudi Arabia during 2018 as the country’s
labour market became less appealing to foreigners as a result of the ongoing Saudisation
programme and government efforts to diversify the economy and reduce the country’s reliance
on its oil and gas exports for revenues. Furthermore, sales came under pressure during 2018
due to the implementation of a new tax regime, which was unfavourable for non-alcoholic beer.

Glass bottles dominate non-alcoholic beer packaging in saudi arabia

Glass bottles held the dominant pack type share in the packaging of malt-based non-alcoholic
beer in Saudi Arabia, in both the foodservice and retail channels. Leading brands such as
Carlsberg’s Moussy and Aujan’s Barbican predominantly offer their non-alcoholic malt
beverages in glass bottles, although the latter also offers metal beverage cans. Glass bottles
replicate traditional alcoholic beverage packaging and allow consumers to view the contents of
the bottle, both of which are appreciated by Saudi Arabian consumers.

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Alcoholic drinks packaging in saudi arabia still limited to 330ml, 355ml

and 500ml bottles or cans
Given that drinking alcohol is strictly prohibited in Saudi Arabia, with a ban on the sale and
consumption of alcohol under Islamic Sharia law, which is the basis for the country’s legal code,
and which is strictly complied with, alcoholic drinks packaging is a very restricted market in
Saudi Arabia. The only product listed within alcoholic drinks in Saudi Arabia is non-alcoholic
beer, with no production or importation of alcoholic drinks with an ABV of more than 0% in the
country.
Carlsberg, with its Moussy and Holsten brands, and Aujan Industries, with its Barbican brand,
are the dominant players in non-alcoholic beer. The majority of the products from these brands
are packaged in 330ml glass bottles. As these are only for single consumption occasions, they
have metal crown closures. Apart from these brands, all other products available are sold only in
glass bottles or metal beverage cans and come in only three sizes, the dominant 330ml pack as
well as 355ml and 500ml, with the 500ml size only being available in metal beverage cans.

PROSPECTS AND OPPORTUNITIES

In-bound tourism to boost volume sales of no-alcohol beverages

The return to normal of in-bound tourism to Saudi Arabia following the pandemic will help
drive sales of non-alcoholic beer in the foodservice channel in particular. Glass bottles are the
dominant pack type in this channel and are thus expected to benefit from improved foodservice
sales. Retail sales are also expected to see positive growth, albeit at slower rates than
foodservice, with demand from consumers taking non-alcoholic beer on picnics and to outdoor
gatherings.

New non-alcoholic offerings could bring new pack types

Alcoholic drinks in Saudi Arabia currently almost exclusively consist of malt-based non-
alcoholic beers. However, with greater exposure to global drinking trends and the fact that most
of Saudi Arabia’s neighbouring countries permit alcohol to certain degrees, Saudi Arabian
consumers are becoming increasingly aware of other varieties of non-alcoholic drinks. Saudi
Arabian consumers also consume sparkling grape juice, which is packaged like Champagne
and consumed on special occasions, but non-alcoholic mocktail mixes and other sparkling
alternatives may have potential in Saudi Arabia. While alcoholic drinks packaging was wholly
accounted for by glass bottles and metal beverage cans in 2022, new alcohol formats could
bring new pack types to the Saudi Arabian market.

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