Emerging Businesses
Our emerging businesses sustained strong momentum in 2025, led by a 20% rise in pediatric nutrition revenue and early progress in bottled water following the acquisition of Pure Beverages Industry Company. These adjacencies broaden our portfolio, enhance category resilience, and create scalable platforms for long-term growth beyond our core categories.
Almarai continues to expands into adjacent categories to diversify our portfolio and capture emerging opportunities beyond core categories. Building on strategic investment plans, we are selectively entering segments such as ice cream, seafood, red meat, and most recently, water, meeting evolving consumer preferences while also strengthening our role in national food security. These ventures leverage Almarai’s scale, distribution network and operational expertise to enhance resilience and long-term growth potential.
Entering the Bottled Water Market
On 31 July 2025, Almarai fully acquired Pure Beverages Industry Co. for X 1.04 billion, with the aim of diversifying its beverage portfolio and entering the promising bottled water market in Saudi Arabia. At the close of the year, the newly acquired water business recorded a X 169 million net sales revenue, contributing to Almarai company revenue growth during the latter half of the year.
The Acquisition of Pure Beverages and Market Opportunities
Pure Beverages is a leading producer of high-quality bottled drinking water, commanding 8.6% in volume market share across the Kingdom at the time of the acquisition. The company operates state-of-the-art facilities in Riyadh and Jeddah, with innovative production technologies committed to the highest global quality standards and sustainable industry practices, and produces 2 different brands of bottled water in Saudi Arabia.
- IVAL®: Made from processed water that meets strict quality and safety standards, undergoing rigorous purification and filtration processes. IVAL® bottled water is fluoridated and contains healthy minerals like calcium and magnesium to support bone health and hydration.
- OSKA®: Bottled drinking water sourced from underground water or processed water sources, undergoing rigorous purification and filtration processes. It is balanced in taste, thanks to its essential minerals such as calcium, magnesium, and potassium and free of chemicals and other additives.
Currently, Saudi Arabia’s total bottled water market, valued at X 17.2 billion at retail, remains fragmented with over 200 players and 350 brands. According to the General Authority for Statistics, bottled water is the primary source of drinking water used by households in Saudi Arabia, with a reliance rate of 57.2%. This is followed by public network water at 23.6% and tanker water at 18.6%. Opportunities exist for share gains, consolidation and quality improvements, with market potential for further growth from portfolio expansion and premiumization.
Our strategic acquisition of Pure Beverages aligns with Almarai’s growth strategy of expanding into adjacent categories as well as with the overall Vision 2030 objective of contributing towards the Kingdom’s economic diversification.
The acquisition was financed through Almarai's internal cash flows, with seasoned executives appointed to leadership roles across managerial, technical and commercial operations of the new business to ensure its future success. After a smooth transition into Almarai, Pure Beverages entered a phase of implementation of its strategic plans to accelerate the growth of the newly acquired business by unlocking Group synergies in the short term, leveraging Almarai’s existing strengths including brand reputation and market position, synergies in supply chain, our focus on quality and innovation, and the generational trust and deep-seated loyalty we have nurtured among customers.