Changes in the Saudi beverage market (page 1 of 2)

What used to be a traditional and stable market in terms of consumption habits has now been turned upside down. Just how far has this transition gone? Will this have far reaching implications for marketers of traditional and non-traditional beverages?

To understand the dynamics of this important market TNS has launched TNS Liquids - the only research tool in Saudi Arabia to comprehensively track the beverage market. TNS Liquids monitors daily consumption across 20 beverage categories, along with consumption within category by different occasions and brands.

For comparison of beverage consumption behaviour, we will use 2003 as the base reference year.

Which Beverages Are Consumed?

In 2003, hot tea had an 81% incidence of consumption and more than a third (37%) of the share of beverage consumption occasions (excluding water). By comparison, 2005 data indicates that the incidence of hot tea consumption has reduced by 4% (78%), while the share of consumption occasions has decreased to 30%.





The stability of the beverage market, with hot tea ruling the roost, has been disturbed. What exactly has contributed to this disturbance may be debatable, but it seems that a shift in consumers' choice preference to a "healthier" lifestyle, answered by the launch of fruit juices & juice milk, amongst others, has lead to this.

The other indicators of shift in consumers' preference to a healthier lifestyle are - increase in incidence of consumption of plain milk from 16% (2003) to 33% (2005 ; and flavoured milk from 3% (2003) to 10% (2005). The incidence of consumption of plain milk has increased amongst both children (56%) and adults (24%) in 2005.

Does this mean that tea, or for that matter coffee, are not seen as so "healthy" drinks ?

Tea & Coffee

Table 2 suggests that the incidences of tea and coffee consumption have decreased in metros (Jeddah, Riyadh & Dammam) while the incidences of consumption of tea and coffee have actually increased in the provincial towns (Tabuk/ Medina, Buraidha/Onaiza, Qatif, Abha/Khamis, Uhudrfaida).

And, incidence of coffee consumption amongst females is still marginally higher than males.

Are consumers in metros then more "health conscious"? Was tea ever perceived as a "health beverage"? If yes, then why has this perception changed? These are the type of questions that need to be asked by tea and coffee marketers. Many such questions/hypotheses arise when investigating TNS Liquids and for some of these questions/ hypotheses it may not be possible for this monitor to answer, but TNS Liquids does provides guidance on the right direction for future action.

Main Reasons For Drinking Tea/Coffee?

The top 10 reasons for drinking each are:

Tea

1. Feel energetic/active/awake (24%)
2. Feel alert/focussed (22%)
3. Feel cool (21%)
4. Wash down the food (19%)
5. Habit (17%)
6. Aid in digestion (15%)
7. Feel close to family/entertain guests (13%)
8. Have a good time/fun (7%)
9. Feel refreshed/quench thirst (5%)
10. Feel soothed/relaxed/get sleep (5%)

(1. - 7. Top reasons for drinking tea)

Coffee

1.