The U.A.E. is an arid land with minimal water and just two water sources: desalinated seawater and groundwater. Groundwater levels are insufficient, with only about 1% of the country's needs being met. Furthermore, Al Ain, a region in the U.A.E., contains a few natural springs from which its population derives their drinking water. Moreover, Dubai's desalination plants currently provide nearly all of the city's potable drinking water. In addition, the responsibility of Dubai's bottled water companies is to check that the supply meets demand.
Therefore, the U.A.E. packaged drinking water market is expected to reach $948.2 million by 2030 from $625.4 million in 2021, with a CAGR of 4.7% from 2021 to 2030. The market is being pushed by the country's growing urban population and tourism industry and rising demand for mineral-rich and functional water. As per a study, an adult consumes over 34 gallons of bottled water per year. As a result, the packaged water sector is predicted to develop rapidly during the decade.
A sufficient volume of safe drinking water is not available throughout the country. This is because dangerous chemicals found on the earth's surface either leak into the water or it is contaminated by pathogenic microbes. Therefore, consuming such water can lead to a variety of water-borne illnesses, the most common of which are parasitic infections. People are, thus, turning to packaged water to avoid the spread of infections. Better water sanitation and supply, as well as enhanced water resource management, can help the country's economy expand, while also improving public health.
Moreover, as the population grows, so will the demand for drinkable water for residential, industrial, and commercial use. According to the United Nations Department of Economic and Social Affairs Population Division, the U.A.E.’s population was around 9,890,400 in 2020, increasing by 1.2% YoY. Therefore, the U.A.E. packaged drinking water market is growing, as more water resources are required to meet the country's expanding water demand, because of the booming population. Seeing the potential, numerous companies have started setting up desalination and other kinds of water treatment plants to make it fit for human consumption.
