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The DDTE reveals Figures and Numbers of the Beverage Industry in the MENA Region

Dubai - UAE, December 14^th 2010: the Dubai Drink Technology Expo (DDTE) commenced its second day at the Dubai International Convention and Exhibition Centre with the participation of more than 130 companies coming from 63 countries.

The exhibitors presented their latest technologies and system solutions for the entire beverage production chain, manufacturing, filling, packaging, and distribution, including; Carbonates & Functional drinks, RTD (Ready to Drink) tea & coffee, Milk and liquid dairy products, Fruit juices, Bottled water, Energy and wellness drinks and other beverages.

Krones - Germany

With more than 20 offices in the Middle East and North Africa, Krones - one of the leading German companies specialized in packaging and filling beverages in glass, PT and cans, is taking part for the third time at the DDTE 2010. Krones offers the upstream for the processing the manufacturing of the beverages as well as the downstream after packaging the warehouse solutions and overall the IT logistic solutions, and for the first time they are presenting the PT recycling.

Frank Hollmann, the Regional Director of the Beverage Division at Krones said; "we are presenting a new technology at the DDTE; the PT recycling, which is a major technique that can cut a lot of cost at the manufacturing level. Our second approach is to introduce the PT light weighting and reducing the number of materials for packaging by sophisticated machines and technology."

He continued "for us, it is important to be present at every edition of the DDTE, as it is a non miss opportunity for us to meet big share of the major customers, not only from UAE but also from the Gulf region. Dubai for us is a gate to the Middle East especially through exhibitions."

The conference program for the second day tackled different topics including; the best practices in water management, the replacement of the traditional detergents and sanitizers in Food and Beverage manufacturing, the best practices approached for production of high purity CO2, using mathematical modeling to predict shelf life and more.

Market News

Total consumption of non-alcoholic beverages in the UAE - including packaged water, reached almost 2.6 billion litres in 2008, worth more than US$ 1.1 billion at retail level. This corresponds to average per capita consumption of just less than 500 liters per annum, well in excess of consumption of tea, coffee, and dairy beverages which accounts for perhaps a further 130 liters per capita. If dispenser water is excluded, consumption is estimated at 1.5 billion liters, and worth around US$ 1.0 billion. Just three main product groups - carbonates, juices and water - account for 92% of this market volume.

Recent growth has been driven primarily by a rapidly expanding population in addition to a strong increase in tourist and business visitors. Market dynamics vary from sector to sector, with some of the key recent developments including:

While in Kuwait, the total consumption of non-alcoholic beverages, including packaged water, reached more than 730 million litres in 2008, and was worth almost US$ 560 million at retail level. This corresponds to average per capita consumption of just less than 215 liters per annum, well in excess of consumption of tea, coffee, and dairy beverages which accounts for perhaps a further 140 liters per capita. If dispenser water is excluded, consumption is estimated at 668 million liters, and is worth just under US$ 550 million.

Although Egypt has one of the largest populations in the Middle East, the non-alcoholic beverages market is relatively small and undeveloped, particularly when compared to neighboring GCC markets. If dispenser water is excluded, the soft drinks market was valued at US$ 1.05 billion in 2008, compared with US$ 3.24 billion in Saudi Arabia, a country with 57 million fewer people!

However, consumption is growing strongly at rates way in excess of most GCC markets and reached almost 2.9 billion liters in 2008, worth close to US$ 1.1 billion at retail level, if packaged water is included. Growth has averaged almost 14% per annum over the past five years helped by a reduction in sales tax in 2006 and a step up in the marketing efforts of leading CSD and juice suppliers.

KSA can justifiably be regarded as the most sophisticated Middle East market for non alcoholic beverages. Not only are per capita amongst the highest in the region but significant competition in supply has encouraged companies to fostered a climate of innovation in an effort to achieve some degree of differentiation.

Total consumption of non-alcoholic beverages, including packaged water, exceeded 6.1 billion liters in 2008, worth almost US$ 3.4 billion at retail level. This corresponds to average per capita consumption of around 216 liters per annum, well in excess of consumption of tea, coffee, and dairy beverages which accounts for perhaps a further 170 liters per capita. If dispenser water is excluded, consumption is estimated at 4.1 billion liters, and worth around US$ 3.2 billion. Two categories - carbonates and juice products - account for around 70% of this by value (slightly less in volume terms).

Consumption of non-alcoholic beverages in Oman is growing steadily, averaging growth of 9-10% per annum over the past five years. Total consumption, including packaged water, was 556 million liters in 2008, worth around US$ 290 million at retail level. This corresponds to average per capita consumption of around 215 liters per annum, compared with consumption of tea, coffee, and dairy beverages which accounts for a further 230 liters per capita.

It is not surprising that consumption of non-alcoholic beverages in Qatar, including packaged water, grew at an average rate of more than 14% per annum since 2004 to reach 424 million litres by 2008, worth more than US$ 165 million at retail level. This corresponds to average per capita consumption of almost 355 litres per annum, well in excess of consumption of tea, coffee, and dairy beverages which accounts for perhaps a further 150 litres per capita. If dispenser water is excluded, consumption is estimated at 220 million litres, worth around US$ 145 million. Just three main product groups - carbonates, juices and water - account for more than 90% of this market volume.

© Press Release 2010