| REPORT ATTRIBUTE |
DETAILS |
| Historical Period |
2019-2022 |
| Base Year |
2023 |
| Forecast Period |
2024-2032 |
| Saudi Arabia Drinking Water Market Size 2024 |
USD 5,719.2 Million |
| Saudi Arabia Drinking Water Market, CAGR |
8.2% |
| Saudi Arabia Drinking Water Market Size 2032 |
USD 10,743.68 Million |
Market Overview:
The Saudi Arabia Drinking Water Market is projected to grow from USD 5,719.2 million in 2024 to an estimated USD 10,743.68 million by 2032, with a compound annual growth rate (CAGR) of 8.2% from 2024 to 2032.
Key drivers of the Saudi Arabia drinking water market include the growing population and increasing urbanization, leading to higher demand for clean and safe drinking water. The country’s arid climate and limited natural freshwater resources have made desalination a crucial source of potable water, which is expected to further fuel market growth. Government initiatives to improve water infrastructure, such as investments in desalination plants and water recycling technologies, are also driving market expansion. Moreover, rising health awareness among consumers and the increasing preference for bottled water are contributing to the growth of the bottled water segment. Technological advancements in water purification and filtration systems, as well as the adoption of smart water management systems, are boosting the market. The demand for sustainable water solutions and environmentally-friendly packaging, such as biodegradable bottles, is also gaining momentum, aligning with global sustainability trends.
Regionally, the Saudi Arabian market is expected to see substantial growth, with the government’s Vision 2030 initiative focusing on enhancing water sustainability and diversifying sources of drinking water. The private sector is increasingly investing in water production and distribution infrastructure to meet the growing demand. Additionally, the country’s ongoing development of smart cities and sustainable urban projects is expected to provide further opportunities for innovation in water delivery and consumption technologies.
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Market Drivers:
Population Growth and Urbanization:
Saudi Arabia is witnessing rapid population growth, which directly impacts the demand for drinking water. As of 2023, Saudi Arabia’s population is approximately 35 million, and projections from the Saudi General Authority for Statistics indicate that the population could reach around 40 million by 2030. This growing population, combined with increasing urbanization, is significantly raising the demand for clean and safe drinking water. For instance, the World Bank reports that over 80% of the Saudi population will live in urban areas by 2030, which is expected to increase water consumption by more than 25% in the next decade. The concentration of people in urban centers like Riyadh and Jeddah has led to a surge in demand for water, particularly for both municipal supplies and bottled water. This population shift highlights the need for scalable water solutions to meet the increased demand.
Water Scarcity and Reliance on Desalination:
Water scarcity remains one of the most pressing challenges for Saudi Arabia, as the country is one of the driest in the world. According to the United Nations, Saudi Arabia’s annual renewable water resources per capita are among the lowest globally, at approximately 100 cubic meters per person—far below the threshold of water scarcity, which is 1,000 cubic meters per capita. For instance, Saudi Arabia relies heavily on desalination to meet its water needs. The Saline Water Conversion Corporation (SWCC) operates over 30 desalination plants and produces over 4.5 million cubic meters of desalinated water per day. As per the Saudi Ministry of Environment, Water, and Agriculture, desalination accounts for approximately 70% of the country’s potable water supply. To further increase desalinated water production, the government plans to boost desalination capacity by 50% by 2030, with new projects like the Shuqaiq 3 desalination plant, which will add an additional 450,000 cubic meters per day to the country’s supply.
Government Initiatives and Investments:
The Saudi government plays a pivotal role in the development of the water sector. Under its Vision 2030 plan, Saudi Arabia is investing heavily in water infrastructure and technologies to improve water sustainability. For instance, the National Water Company (NWC) has allocated SAR 14 billion ($3.73 billion) in 2020 alone for major water and wastewater projects. This investment includes the expansion of desalination capacities, the improvement of water networks, and the development of water recycling systems. The Saudi Water Partnership Company (SWPC) has been instrumental in facilitating public-private partnerships (PPPs) for water infrastructure projects. The SWPC recently awarded a contract for the development of the Jeddah 3 Independent Water Project (IWP), which will produce 600,000 cubic meters of desalinated water per day. Such initiatives are part of a broader strategy to ensure a reliable and sustainable water supply for the growing population.
Technological Advancements and Water Efficiency:
Innovations in water management and treatment technologies are also driving market growth. Technologies like reverse osmosis (RO), membrane filtration, and energy-efficient desalination processes are improving water quality while reducing costs and energy consumption. According to the International Energy Agency (IEA), advancements in RO desalination processes could reduce energy consumption per cubic meter of water by up to 30% over the next decade. For instance, the NWC launched a smart water metering pilot program in Riyadh, with plans to equip 1 million homes with smart meters by 2025. This program aims to reduce water loss and improve water consumption efficiency, aligning with the country’s broader goals of improving resource management. Real-time data collection through smart meters can help reduce non-revenue water (NRW) by up to 20%, significantly enhancing water distribution efficiency.
Market Trends:
Shift Towards Sustainable Water Solutions:
As water scarcity continues to be a pressing issue in Saudi Arabia, there is a growing shift towards sustainable water solutions, including water recycling and the adoption of environmentally friendly technologies. The government has recognized the importance of long-term water sustainability and is actively working to reduce water wastage and increase the use of treated wastewater. For instance, the Saudi Ministry of Environment, Water, and Agriculture (MEWA) has launched initiatives to recycle and reuse wastewater. The country’s goal is to recycle 50% of its wastewater by 2030. Currently, about 15% of the water used in the kingdom is recycled, but with the expansion of wastewater treatment facilities, Saudi Arabia plans to increase this figure to 35% by 2025. This will significantly contribute to reducing pressure on natural freshwater sources and desalinated water supplies. The government is also focusing on the development of water-efficient agricultural technologies. The Saudi Agricultural and Livestock Investment Company (SALIC) has invested in projects that utilize advanced irrigation systems to optimize water use in the agricultural sector. These systems, such as drip irrigation, are designed to conserve water and improve productivity. Additionally, there is an increasing interest in the development of water-efficient buildings and urban planning strategies that incorporate water conservation technologies, as seen in the Kingdom’s Smart City projects under Vision 2030.
Technological Advancements in Water Management:
Technological innovation plays a critical role in addressing the country’s water challenges. The introduction of smart water systems, including smart meters and AI-powered water management tools, is transforming the way water is monitored and consumed in Saudi Arabia. The National Water Company (NWC) is leading efforts to implement smart metering systems in key cities to reduce water loss and improve efficiency in water distribution. For instance, the NWC is expanding its smart water metering project, which involves installing over 1 million smart meters across the country by 2025. This initiative will allow real-time monitoring of water consumption, enabling more efficient management of water resources and reducing non-revenue water (NRW), which currently accounts for nearly 25% of the total water supply. According to a report by the World Bank, smart water management systems could help reduce NRW losses by up to 30% over the next decade. Additionally, the use of artificial intelligence (AI) and machine learning in water treatment plants is becoming more widespread in Saudi Arabia. These technologies help optimize the operation of desalination plants, monitor water quality, and predict potential failures in the water infrastructure. The state-owned Saline Water Conversion Corporation (SWCC) has been investing in such technologies to improve the efficiency of desalination plants, which currently produce over 4 million cubic meters of desalinated water daily.
Market Challenge Analysis:
Water Scarcity and Over-reliance on Desalination:
One of the primary challenges facing Saudi Arabia’s drinking water market is the country’s acute water scarcity. Saudi Arabia, located in one of the driest regions in the world, has limited natural freshwater resources, with annual renewable water resources per capita at one of the lowest levels globally. According to the United Nations, Saudi Arabia’s water resources are far below the threshold for water scarcity, which is defined as less than 1,000 cubic meters of freshwater per person per year. This scarcity has made the country heavily dependent on desalination as the main source of drinking water. In fact, desalination accounts for about 70% of the country’s potable water supply. While desalination provides a viable solution, it comes with significant challenges, particularly in terms of energy consumption, environmental impact, and cost. Desalination requires a substantial amount of energy, which contributes to the country’s carbon emissions and raises concerns about sustainability. The energy-intensive nature of desalination processes, particularly reverse osmosis (RO), puts a strain on Saudi Arabia’s power grid and increases operational costs. Moreover, desalination plants often produce brine as a byproduct, which, if not properly managed, can harm marine ecosystems. With the rapid growth of desalination capacity under Saudi Arabia’s Vision 2030, there is an ongoing challenge of balancing the need for water with the environmental implications and high energy demands associated with desalinated water production. Addressing this issue requires substantial investments in more energy-efficient desalination technologies and the development of renewable energy sources, such as solar and wind, to power these plants sustainably.
Infrastructure and Water Distribution Issues:
In addition to the challenge of water scarcity, Saudi Arabia faces significant infrastructure and distribution issues that complicate the delivery of clean and potable water to its growing population. The country’s rapid urbanization and population growth, particularly in cities like Riyadh, Jeddah, and Dammam, have led to increasing pressure on existing water distribution networks. Despite large investments in water infrastructure, much of the country’s water distribution system is outdated and prone to inefficiencies, such as water leakage, non-revenue water (NRW), and high operational costs. According to the National Water Company (NWC), about 25% of the water in Saudi Arabia’s distribution network is lost due to leakage or illegal consumption, a significant challenge for a country already struggling with water scarcity. Moreover, the country’s rural areas and remote regions face additional hurdles in accessing reliable and clean drinking water. In these regions, water delivery is often inconsistent and expensive due to the lack of adequate infrastructure and the logistical difficulties of transporting water to distant areas. As a result, the rural population is often reliant on water trucking services or bottled water, which increases costs and raises concerns about water quality. The government has been actively working to address these issues through various initiatives, including the expansion of smart water management systems, improvements in water metering, and efforts to modernize the water distribution network. However, these infrastructure challenges remain a significant barrier to ensuring equitable access to clean water across the entire country. Efficient water management and distribution infrastructure are essential to meeting the needs of both urban and rural populations while also reducing wastage and ensuring the sustainability of water resources.
Market Segmentation Analysis:
By Type
The Saudi Arabia drinking water market is primarily segmented into bottled water, tap water, and other types. Bottled water dominates the market due to growing consumer preference for convenience, safety, and health concerns. Tap water remains a key source for residential and industrial use, although its quality and safety are often enhanced through filtration systems. Other types, such as purified and flavored water, are also gaining popularity, especially among health-conscious consumers. This segment continues to expand as consumers become more discerning about water quality and packaging.
By Technology
The technology segment is driven by desalination, water filtration, and purification technologies. Desalination is the most significant technology used in Saudi Arabia, given the country’s reliance on seawater desalination to meet its freshwater needs. Reverse osmosis (RO) is the dominant desalination technology, supported by the development of energy-efficient solutions. Water filtration technologies, including activated carbon and UV-based systems, are becoming increasingly common in households and businesses to ensure water purity. Additionally, advancements in smart water management, such as real-time monitoring and AI-driven systems, are enhancing water distribution and reducing wastage, making water management more efficient.
By End-User
The end-user segmentation of the Saudi drinking water market includes residential, commercial, and industrial users. Residential consumption accounts for the largest share, driven by increasing urbanization and population growth. Bottled water is particularly popular in urban areas where tap water quality may be a concern. The commercial segment, including offices, restaurants, and hospitality services, also contributes significantly to market demand for bottled and purified water. The industrial sector, including manufacturing, oil and gas, and energy industries, represents a growing end-user segment, where water treatment and desalination are critical for operations and cooling processes. The growing focus on water efficiency and sustainability in industrial applications is expected to drive demand for advanced water treatment technologies.
Segmentation:
Based on Product Type:
- Bottled Water
- Tap Water
- Purified Water
- Flavored Water
- Spring Water
- Other Water Types
Based on Technology:
- Desalination Technology
- Reverse Osmosis (RO)
- Water Filtration Systems
- UV Water Treatment
- Smart Water Management Solutions
- Water Recycling and Reuse Technologies
Based on End-User:
- Residential
- Commercial (Offices, Restaurants, Hospitality)
- Industrial (Manufacturing, Oil & Gas, Energy)
- Institutional (Schools, Hospitals, Government)
Based on Region:
- Riyadh
- Jeddah
- Dammam
- Mecca
- Medina
- Eastern Province
- Western Region
- Southern Region
Regional Analysis:
Riyadh and Central Region: Leading the Market
The Riyadh and Central Region of Saudi Arabia is the largest and most populous region, accounting for a substantial portion of the drinking water market. Riyadh, the capital city, is home to over 7 million people, contributing significantly to demand for bottled water, tap water, and desalinated water. The region is expected to hold the largest market share, approximately 45% of the total market, driven by a rapidly growing urban population and rising consumer preference for bottled water due to concerns about tap water quality and safety. With urbanization and population growth at the forefront of the region’s development, water consumption is expected to increase considerably. The demand for water in Riyadh is heavily supported by government investments in water infrastructure and desalination technologies. The Saudi government has built large-scale desalination plants to supply Riyadh with potable water, further strengthening the market in the region. Additionally, the push for sustainable water practices, such as the introduction of smart water management systems, is accelerating growth in the region’s water sector. The region also serves as the economic and political hub of the kingdom, where water-related industries such as water bottling, distribution, and treatment are growing in tandem with economic activities. The expansion of water infrastructure in Riyadh is further supported by Vision 2030, which includes significant projects to improve water sustainability, such as the planned increase in wastewater recycling and desalination capacity. These projects are expected to reduce reliance on traditional freshwater sources and enhance the efficiency of water consumption in both residential and industrial sectors.
Jeddah and Western Region: Significant Growth and Demand
The Jeddah and Western Region, including Mecca and Medina, also represents a major segment of the Saudi drinking water market. This region holds around 35% of the market share and continues to grow rapidly due to its strategic importance and large population centers. Jeddah, the second-largest city in Saudi Arabia, is an important coastal city with a high population density, driving demand for bottled water, purified water, and desalinated water. Jeddah is also a key industrial and commercial hub in the kingdom, with significant infrastructure projects being developed under Vision 2030. These include advanced water management systems, desalination plants, and projects for water recycling and reuse. The ongoing development of smart water solutions in Jeddah aims to reduce water loss and increase efficiency. Mecca and Medina, with their religious significance and millions of pilgrims visiting annually, contribute to a unique demand for drinking water solutions, particularly bottled water and purified water. Jeddah’s proximity to the Red Sea also makes it a focal point for desalination, with several desalination plants in operation. The growth in bottled water demand and advancements in water technology in Jeddah are expected to continue rising, contributing to the region’s substantial share of the market.
Eastern Region: Industrial Demand and Water Sustainability
The Eastern Region of Saudi Arabia, which includes cities such as Dammam, Al Khobar, and Jubail, is another key contributor to the drinking water market. The region is expected to account for around 20% of the total market share, with its primary demand driven by the industrial sector, including oil and gas, manufacturing, and petrochemicals. The significant industrial activities in this region require substantial water supplies for operations, cooling processes, and manufacturing, which in turn creates demand for desalinated water and advanced water treatment technologies. Dammam and Al Khobar, being major industrial and commercial cities, have seen increasing investments in desalination technologies and water infrastructure to meet the high demand for water in both residential and industrial sectors. The region also benefits from the development of water recycling technologies, as the industrial sector increasingly adopts sustainable water management practices. The presence of the King Fahd University of Petroleum and Minerals (KFUPM) in Dhahran has also led to collaborations in water research and technology development. These innovations in desalination and wastewater recycling are expected to play a critical role in reducing water scarcity in the region. The ongoing industrial expansion and the demand for clean water solutions in the Eastern Region are expected to fuel continued growth in the drinking water market.
Asia Pacific: Supporting Technological Advancements and Investments
The Asia Pacific region plays a pivotal role in supporting Saudi Arabia’s drinking water market through technological partnerships, investments in desalination plants, and advancements in water treatment technologies. Countries like Japan, China, and South Korea are actively involved in providing expertise in desalination and water treatment systems. For example, Japan’s Mitsubishi Heavy Industries has been involved in developing desalination technologies in Saudi Arabia, supporting the country’s reliance on seawater desalination to meet its water needs. Additionally, international companies and regional collaborations in the Asia Pacific are enhancing the capabilities of the Saudi water market, particularly in the areas of water filtration, reverse osmosis (RO) technology, and water recycling. The exchange of knowledge and technologies from the Asia Pacific region is expected to help Saudi Arabia further enhance its water infrastructure and reduce the environmental impact of desalination processes.
Key Player Analysis:
- Nestlé S. A.
- Hayat Water
- Al Hada Water Co. Ltd.
- Naqi Water
- Arwa
- Dome
- Tania
- Berain
- Al-Qassim Healthy Water
- Hana Water
- Al Ain Water
- Dala Company
- Fayha Water
Competitive Analysis:
The competitive landscape of Saudi Arabia’s drinking water market is shaped by a few key players, both local and international, who dominate the production and distribution of potable water. The market is highly fragmented, with major players like National Water Company (NWC), Saline Water Conversion Corporation (SWCC), Almarai, Nestlé Waters, and PepsiCo holding significant market shares. NWC, a government-owned entity, plays a central role in water supply and management, particularly through its involvement in desalination and distribution projects, which are vital to meeting the country’s water needs. SWCC, another state-run organization, operates the majority of Saudi Arabia’s desalination plants, making it a critical player in supplying water to major urban centers like Riyadh and Jeddah. In the bottled water segment, Almarai, a leading dairy company, has expanded its product portfolio to include bottled water and competes with global brands like Nestlé and PepsiCo’s Aquafina. These multinational corporations leverage their strong brand recognition and extensive distribution networks to maintain a significant presence in the market. Local bottled water brands also have a strong foothold, particularly in the residential and commercial sectors. The competition is intensifying as consumer preferences shift toward healthier, eco-friendly options, driving demand for purified, flavored, and mineral water. To stay competitive, companies are investing heavily in technological innovations such as advanced water filtration, packaging solutions, and smart water management systems. As the government focuses on improving water sustainability through Vision 2030, collaborations between private and public entities in desalination, recycling, and water efficiency are expected to become more common, fostering healthy competition in the market.
Recent Developments:
- In January 2024, the National Water Company (NWC) announced the completion of operations at eight new drinking-water treatment stations, part of its national water strategy. This strategy aims to enhance water quality for customers and expand coverage with desalinated water.
- Also, in January 2024, the National Water Company in Saudi Arabia revealed plans to begin supplying desalinated water to one lakh beneficiaries in Dhahran. The service will cover areas such as Dana, Doha, Sulaimaniya, Al-Jami’ah, and the King Fahd College of Petroleum and Minerals (KFUPM).
- In September 2023, the King Salman Humanitarian Aid and Relief Center signed a USD 5 million agreement to provide clean drinking water to drought-affected communities in Somalia. The deal includes drilling 24 solar-powered artesian wells and restoring an additional 20 wells.
Market Concentration & Characteristics:
The drinking water market in Saudi Arabia exhibits moderate market concentration, with a few large players dominating the production and distribution landscape, but also featuring a variety of smaller local and regional competitors. The market is largely characterized by the significant role of government entities like the National Water Company (NWC) and Saline Water Conversion Corporation (SWCC), which control a substantial portion of water distribution, particularly in urban areas where desalinated water is the primary source. These state-owned companies influence pricing and distribution policies, while also overseeing large-scale infrastructure projects related to desalination plants and water recycling systems. On the other hand, the bottled water segment is more fragmented, with several international brands such as Nestlé Waters and PepsiCo’s Aquafina, alongside dominant local brands like Almarai, capturing the lion’s share of the market. The market is also characterized by increasing competition from smaller local producers, which cater to niche consumer needs, such as eco-friendly and premium water products, including flavored and mineral water. In response to changing consumer preferences, there is a rising demand for healthier water options, as well as sustainable and biodegradable packaging solutions. As a result, companies are investing in innovative water purification technologies, smart water management systems, and environmentally conscious packaging to differentiate themselves. The government’s Vision 2030 initiative, which focuses on improving water sustainability, is further driving market innovation and collaboration between the public and private sectors. Despite the relatively high market concentration in certain segments, the market remains dynamic with significant growth potential in areas like water treatment, desalination, and sustainable packaging.
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Report Coverage:
This report provides a comprehensive analysis of the Saudi Arabia drinking water market, examining key trends, drivers, challenges, and opportunities within the sector. It offers insights into the market’s segmentation, including product types (such as bottled water, tap water, and purified water), technology (focusing on desalination, reverse osmosis, filtration systems, and smart water management), and end-users (covering residential, commercial, industrial, and institutional consumers). The report also includes a detailed regional analysis, highlighting the dynamics in key areas such as Riyadh, Jeddah, Dammam, and the Eastern Province, alongside the influence of international players and technological collaborations from the Asia Pacific region. Additionally, the report explores the competitive landscape, with an emphasis on both domestic and international companies, government agencies, and the impact of public-private partnerships. Furthermore, it addresses the challenges faced by the market, such as water scarcity, over-reliance on desalination technologies, and infrastructure issues, while also analyzing the government’s Vision 2030 initiative and its effect on market growth and sustainability. The report provides market forecasts and potential growth opportunities, along with a look at the latest technological advancements in water purification, desalination, and distribution systems. With data from authoritative sources like the World Bank, National Water Company (NWC), and Saline Water Conversion Corporation (SWCC), this report serves as an essential resource for industry stakeholders, investors, policymakers, and businesses seeking a deeper understanding of the Saudi Arabian drinking water market.
Future Outlook:
- Saudi Arabia’s drinking water market will continue to be shaped by the government’s Vision 2030, which focuses on sustainable water management and enhancing infrastructure.
- There will be an increasing reliance on desalination technologies to meet the growing demand for potable water in urban and industrial sectors.
- Investments in wastewater recycling and water reuse systems will significantly rise, with the country aiming to recycle 50% of its wastewater by 2030.
- Smart water management technologies, such as AI-driven systems and smart meters, will become more widespread, improving efficiency and reducing water losses.
- The private sector’s role in water infrastructure development will expand, particularly through public-private partnerships (PPP) in desalination and distribution projects.
- There will be growing demand for bottled water and packaged drinking water, driven by consumer preferences for convenience and health concerns.
- Technological innovations in water purification, filtration, and treatment will drive improvements in water quality across the kingdom.
- Increased government funding and initiatives for research and development in water conservation and treatment technologies will foster innovation.
- Sustainable packaging solutions, such as biodegradable bottles, will gain traction in response to environmental concerns.
- The sector will benefit from growing international collaboration, with global players and agencies supporting Saudi Arabia’s water sustainability efforts.
