United Arab Emirates Bottled Water Market Assessment, By Type [Still Water, Sparkling Water, Functional Water, Others], By Packaging [PET Bottles, Glass Bottles, Biodegradable Packaging, Metal Cans, Others], By End-user [Individual, Commercial], By Distribution Channel [Convenience Stores, Grocery Shops, Internet Retailing, Supermarkets/Hypermarkets, Others], By Region, Opportunities and Forecast, 2018-2032F

United Arab Emirates bottled water market is projected to witness a CAGR of 8.62% during the forecast period 2025-2032, growing from USD 1.75 billion in 2024 to USD 3.39 billion in 2032. The market is at a healthy growth rate due to adverse climatic conditions, people's increasing awareness about health, and the growing population. Rising temperatures and inadequate natural freshwater sources have rendered bottled water an essential component of everyday life for both residents and tourists. Furthermore, the market is affected by shifting consumer preferences wherein the demand for premium hydration options, such as alkaline and mineral-enriched water, is increasing. Sustainability concerns are gaining importance as consumer demand and regulatory enactment pave the way for eco-friendly packaging, ranging from biodegradable bottles to refillable containers. The rapid growth of e-commerce is changing the market, making bottled water easily available on online platforms as well as through subscription delivery services.

Additionally, in the UAE, the tourism and hospitality industries play a significant role in market growth, as bottled water sales are of major importance for hotels, restaurants, and entertainment venues. Government regulations ensure products maintain high quality and safety standards, enhancing consumer confidence. In this competitive landscape, both international and local brands work towards innovation to gain a competitive edge in the industry.

In September 2024, Air Water Units Trading Ltd introduced a new cutting-edge bottling facility in Dubai Industrial City (DIC) that is expected to produce above 100,000 liters of pure water from the air daily. The new facility at DIC houses over 50 A1R3000 units that can produce 3,000 liters of water daily. This is equivalent to approximately 120,000 liters of drinking water delivered in reusable glass bottles to hotels, schools, corporations, and more, thus eliminating millions of plastic water bottles and allowing businesses to meet their ESG objectives faster. 

Extreme Climate Fuels Market Growth

In the UAE's arid climate and high-temperature conditions, bottled water continues to be the basic requirement for both residents and tourists alike. The need to stay hydrated becomes all the more important because summer temperatures in the region cross the 45°C mark, leading to round-the-year demand for bottled water. In fact, in June 2024, the mercury reached 49.9°C, which was the hottest temperature recorded by the National Centre of Meteorology for the year. The scarcity of natural freshwater sources is a crucial factor in the demand for sustenance. While desalination serves as the major drinking water source, most consumers, however, prefer bottled water for its ease of convenience and its perceived purity.

Moreover, outdoor activities, construction works, and sports events necessitate an easy supply of safe drinking water and greatly increase the volume consumed. Hospitality and retail industries are also crucial for the demand for bottled water as it is an easily accessible product in hotels, restaurants, and cafes. Such dependencies on climatic conditions only help enable bottled water to be one of the necessities, not a luxury. This further makes the UAE one of the most lucrative markets for bottled water manufacturers, with admittedly stable demand throughout economic fluctuations. 

Tourism Growth Helps in Market Expansion

One of the main factors for the bottled water market's growth is the UAE's growing tourism industry. As a global travel hub, cities like Dubai and Abu Dhabi attract millions of visitors each year, increasing the demand for safe and convenient delivery of packaged drinking water. As per the Dubai Department of Economy and Tourism (DET), over 18.72 million international overnight visitors arrived in Dubai from January to December 2024, a year-on-year increase of 9% over previous years, surpassing the record 17.15 million in 2023. Tourists usually opt for bottled water since they cannot trust the water supply and prefer the kind that guarantees quality and convenience. High-end hotels, fine-dining restaurants, and entertainment venues further boost traditional sales with diverse high-end bottled water options, catering to the majority of international travelers.

Additionally, top-priority events such as Expo 2020, Formula 1 races, and shopping festivals create short-term spikes in bottled water demand. The country's thriving hospitality business, with cafes, resorts, and desert safari experiences, heavily influences bottled water sales. Bottled water demand is expected to continue trending upward due to ongoing investments in tourism infrastructure, such as theme parks and cultural attractions, thus solidifying its status as an important engine for the beverage market in the UAE.

Internet Retailing is Gaining Dominance

In the UAE bottled water market, e-commerce is boosting its edge as customers have begun to prioritize convenience, variety, and competitive prices much more favorably. The rapid growth of e-commerce platforms, coupled with the rise in smartphone use and digital payment systems, has transformed the entire process of bottled water purchasing. Also, according to the World Bank, UAE’s internet penetration rate for 2023 stood at 100%. With online grocery services and direct-to-consumer delivery models, customers can now order bottled water in bulk or subscribe to regular deliveries, eliminating the necessity of visiting the store repeatedly. This trend is particularly visible in urban settings, where busy lifestyles generate demand for hassle-free shopping. Online retailers promote digital buying with special offers, discounts, and subscription-based models.

Another important dimension related to sustainability goals is to shop online to reduce carbon footprints by optimizing delivery routes and minimizing packaging waste. Holding upon the current trend of UAE residents moving towards digital solutions, it is expected that online retailing will keep becoming an increasingly important medium for bottled water sales as it transforms distribution channels and consumer purchasing behavior. 

Dubai Holds the Majority Market Share

Dubai, being the most densely populated area and a leading tourist destination, is at the forefront of the bottled water market in the UAE, as it leaves the country with a well-laid retail network. Tourists arriving in Dubai in millions every year contribute significantly to the demand for bottled water in hotels, restaurants, and entertainment joints. The demand is also fostered by the huge expatriate population living a fast-paced lifestyle, choosing premium options for hydration. In February 2023, India's leading bottled mineral water company, Bisleri International Pvt. Ltd., launched its first overseas operations in the UAE. The brand collaborated with one of the renowned Gulf companies - Nasser Abdulla Lootah Group- to strengthen Bisleri International's position in Dubai, along with Sharjah and Abu Dhabi. The Emirates Drinking Water, which is a part of the Nasser Abdulla Lootah Group of Companies in the region, looks after the manufacturing and bottling processes.

Moreover, Dubai’s e-commerce, effectively complemented further by major supermarkets, hypermarkets, and convenience stores established throughout the city, drives the demand for bottled water in the region. Government policies regarding sustainability have also been a plus sign for creating more demand for eco-friendly bottled water in Dubai. The dynamic consumer base, extensive retail networks, and innovative trends make Dubai the home to the nation's bottled water market.

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Future Market Scenario (2025-2032F)

• The bottled water market will witness great demand because of adverse weather conditions, increasing population, as well as the expansion of tourism.
• Environmental concerns are expected to push forward eco-friendly packaging options, such as biodegradable bottles and refillable water solutions.
• Online sales and subscription-based delivery models will continue to grow in size and acceptability because of the convenience offered to consumers and cost competitiveness within the market.

Report Scope

“United Arab Emirates Bottled Water Market Assessment, Opportunities and Forecast, 2018-2032F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of the United Arab Emirates bottled water market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Report Attribute	Details
Base Year of the Analysis	2024
Historical Period	2018-2023
Forecast Period	2025-2032
Projected Growth Rate	CAGR of 8.62% between 2025 and 2032
Revenue Forecast in 2032	USD 3.39 billion
Segments Covered	Type, Packaging, End-user, Distribution Channel
Regions Covered	Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al-Quwain, Fujairah, Ras Al Khaimah
Key Companies Profile	Agthia Group PJSC (Al Ain), Bisleri International Pvt. Ltd., MASAFI CO LLC, ALGhadeer Drinking Water L.L.C, PepsiCo, Inc., National Food Products Company, AWAFI MINERAL WATER CO LLC, Zulal Water Company, Mai Dubai LLC, Sanpellegrino S.p.A.
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfill your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

In the report, United Arab Emirates bottled water market has been segmented into the following categories: 

• By Type
  • Still Water
  • Sparkling Water
  • Functional Water
  • Others
• By Packaging
  • PET Bottles
  • Glass Bottles
  • Biodegradable Packaging
  • Metal Cans
  • Others
• By End-user
  • Individual
  • Commercial
• By Distribution Channel
  • Convenience Stores
  • Grocery Shops
  • Internet Retailing
  • Supermarkets/Hypermarkets
  • Others
• By Region
  • Abu Dhabi
  • Dubai
  • Sharjah
  • Ajman
  • Umm Al-Quwain
  • Fujairah
  • Ras Al Khaimah

Key Players Landscape and Outlook

The bottled water market in UAE is broadly characterized by competition between numerous international and local brands catering to various consumer choices. The established players enjoy the upper hand in terms of distribution, premium products, and innovation in packaging. For instance, in February 2023, Al Ain Water, one of the top water brands in the United Arab Emirates launched a new bottle made of recycled polyethylene terephthalate (rPET). The new bottle is made from 100% rPET, which consists of post-consumer recycled plastic that can be recycled infinitely. Compared with virgin material production, rPET uses 75% less CO2 emissions and less energy, which balances its ecological profile much better than glass and single-use aluminum cans.

Moreover, premium and functional waters, such as alkaline, vitamin-enriched, and mineral-infused ones, are gaining traction in the market, with companies under pressure to compete through innovation. Due to rising demand, brands are reshaping distribution strategies for the e-commerce and direct-to-consumer sales segment, thereby enhancing their online presence.

Looking forward, sustainability trends, premiumization, and continued tourism growth are expected to propel the market's steady growth. Firms that focus on health-conscious formulations, digital retailing, and sustainable practices will be in the most favorable position to capitalize on opportunities in emerging markets. 

Key Players Operating in the United Arab Emirates Bottled Water Market are:

• Agthia Group PJSC (Al Ain)
• Bisleri International Pvt. Ltd.
• MASAFI CO LLC
• ALGhadeer Drinking Water L.L.C
• PepsiCo, Inc.
• National Food Products Company
• AWAFI MINERAL WATER CO LLC
• Zulal Water Company
• Mai Dubai LLC
• Sanpellegrino S.p.A.

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