The Saudi Arabia beverage market is growing at an annual rate of over 8%, with each household buying an average of 11 different beverage categories, according to data by Kantar Worldpanel, a UK-based organisation dealing in consumer knowledge and insights.

The research showed that beverage sector is driving the growth of food industry.

The data also suggested that many high growth categories are expanding their buyer base in Saudi Arabia; however flavoured dairy products have expanded both their buyer base as well as consumption levels.

It also revealed the changing shopping behaviour of the consumer, as they now prefer buying multipacks at one time rather than visiting multiple times for buying beverages.

Kantar Worldpanel consumer insights director Ranjitha Subash said cold beverages, dairy products and contemporary products such as energy drinks, malt drinks and flavoured dairy products are mainly responsible for the growth.

"The high growth rate of these products indicates fragmentation of the beverage market through the development of differentiated need states," Subash added.

"Though the ‘newer formats’ are gaining momentum, these categories are more inclined towards expats who seems to be the early adopters, locals still prefer traditional beverages like coffee, concentrates and Laban.

"Another big trend indicates that the Saudi market is showing a gradual shift towards cold, with hot beverages losing growth momentum among its core consumers.

"Our home panel data reveals a compelling truth, which is that there are only three ways to grow a business; gaining more consumers, making consumers buy more often and making them purchase bigger quantities."