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Water distribution depot feasibility study

Latest regulatory change: 2024 · reviewed 2026-10-10

An everyday product with constant demand, in a market expanding with new factories.

  • 6.7 billion litresBottled water market size in 2021[4]
  • 331Water factories in Saudi Arabia in 2024[3]
  • 15%Growth in the number of factories within a year[3]

Latest regulatory and market changes

  1. 2015Oversight of bottled water factories moved to the Saudi Food and Drug Authority (SFDA), and bottled water must now be transported in covered, thermally insulated vehicles.[1]
  2. 2018The Saudi Food and Drug Authority (SFDA) called on food storage businesses to obtain a food warehouse licence.[2]
  3. 2024The number of water factories rose to 331, up from 288 the previous year, according to the Ministry of Industry and Mineral Resources.[3]

Why now

  • More factories and more competition between them widen the distributor's choice.[3]
  • The Hajj and summer seasons raise demand, especially in Makkah.[3]

6.7 billion litresSize of the bottled water market in Saudi Arabia in 2021, according to a Euromonitor estimate cited in an IPO prospectus.[4]

The idea and business model

A depot that buys bottled water and large water bottles in bulk from factories, stores them, then distributes them to homes, offices and shops with a delivery fleet. Revenue comes from the distribution margin, recurring subscriptions and corporate contracts.

Model: Distribution

Project economics

Revenue formula

Units distributed×Distribution margin×Number of customers

Sales channels

  • Homes
  • Offices
  • Shops

Largest cost items

  • Bulk water purchases
  • Vehicles and fuel
  • Drivers
  • Warehouse rent

Decisive indicators we measure

  • Margin per unit
  • Deliveries per vehicle per day
  • Delivery cost
  • Share of subscription customers

Relevant authorities

  • Saudi Food and Drug Authority (SFDA): transport and storage requirements
  • Ministry of Municipalities and Housing (MoMAH) via Balady: municipal licence
  • Civil Defence
  • Ministry of Commerce: Commercial Registration (CR)

What needs your attention

  • Transport and storage conditions are strict, and a breach may mean the product is destroyed.
  • Major brands may run their own direct distribution and apps.
  • Prices vary between brands, so the distributor's margin is sensitive to the product mix chosen.

What a Water distribution depot study calculates for you

  • Factory wholesale prices and how they compare
  • Delivery cost per unit
  • Suitable fleet size
  • Transport and storage requirements
  • Daily units needed to break even

Every one of these figures appears in your study with its source and date, built on your location and capital, with a clear line between documented facts and assumptions.

Sources

Most sources are Saudi government and press pages in Arabic; titles are kept in their original language so you can find them.

  1. إلزام مصانع المياه المعبأة بوسائل نقل مغطاةالهيئة العامة للغذاء والدواء · 2015-11
  2. دعوة مؤسسات تخزين الأغذية للحصول على ترخيصالهيئة العامة للغذاء والدواء · 2018-12
  3. مصانع المياه السعودية توزع 3.7 مليار متر مكعبالاقتصادية (عن وزارة الصناعة) · 2025-06
  4. Market share of bottled water firms in Saudi Arabiaأرقام · 2022-06

Last reviewed: 4 November 2026. This page introduces the activity; detailed figures belong in the study.