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There is a large demand for alcohol in the Middle East for several reasons. First off, a sizeable ex-pat population, notably those from Western nations where drinking alcohol is a popular social pastime, is present in the region. As a result, there is a need for booze in the area to meet these people’s wants.
Furthermore, the Middle East is home to a large number of opulent hotels and eateries that serve wealthy customers prepared to pay top dollar for fine alcoholic beverages. These facilities frequently provide a large selection of alcoholic beverages, including upscale brands and vintages that are hard to find, which draws customers and helps the liquor market expand.
Furthermore, with the growth of tourism in the region, there has been an increase in demand for liquor among tourists who come to the Middle East for leisure and entertainment. This trend is particularly evident in countries like Dubai, where there is a vibrant nightlife scene, and liquor is readily available in bars and clubs.
Additionally, the liberalization of alcohol laws in some countries in the Middle East has led to an increase in the consumption of liquor. For instance, in the United Arab Emirates, non-Muslims are permitted to purchase and consume alcohol in licensed establishments, leading to a growth in the liquor market.
In conclusion, the liquor market in the Middle East is in high demand due to various factors, including the presence of a significant expatriate population, luxury hotels and restaurants, growth of tourism, and liberalization of alcohol laws. This trend is expected to continue in the coming years, with the market projected to grow further.
There are many different alcoholic drinks available on the liquor market, including beer, spirits, wine, cider, perry, rice wine, and hard seltzer. In the Middle East, there is a wide selection of domestic and foreign brands of beer. Whiskey, vodka, and gin are among the most popular spirits, especially among tourists and foreigners. Although not a common beverage in the area, wine has grown in popularity recently, with more wine bars and stores popping up in the major cities. Although less popular, rice wine, cider, and perry all have devoted fans in the Middle East.
In recent years, hard seltzer has emerged as a new and rapidly growing category in the liquor market, particularly among younger consumers. Hard seltzers are low-calorie, low-carbohydrate, and gluten-free alcoholic beverages made with carbonated water, flavourings, and base alcohol like vodka or tequila. They are often marketed as a healthier alternative to other alcoholic drinks, and have gained popularity in the Middle East due to their refreshing taste and perceived health benefits.
The majority of the nations in the region closely regulate the consumption of alcohol, with varied degrees of restrictions and harsher punishments for breaking these laws, despite the popularity of the Middle Eastern alcohol market. Due to the expanding number of authorised hotels, pubs, and restaurants that offer alcohol, as well as the demand from visitors and ex-pats, the liquor business is primarily driven by these factors.
The liquor market in Saudi Arabia is growing due to the country’s increasing openness to foreign investment and the relaxation of certain restrictions on alcohol consumption. The government has allowed for the sale of alcohol in certain areas, such as hotels and restaurants, and has also allowed for the importation of alcoholic beverages from abroad. This has opened up the market to foreign companies, which has led to an increase in the availability of alcoholic beverages in the country. Additionally, the government has also allowed for the establishment of private liquor stores, which has further increased access to alcohol in Saudi Arabia.
The UAE liquor market is also growing due to the country’s increasing openness to foreign investment and its relaxed regulations on alcohol consumption. The government has allowed for the sale of alcohol in certain areas, such as hotels and restaurants, and has also allowed for the importation of alcoholic beverages from abroad. This has opened up the market to foreign companies, which has led to an increase in the availability of alcoholic beverages in the UAE. Additionally, there are now more private liquor stores operating in the country, which has further increased access to alcohol in this region.
The middle east liquor market has been segmented into Type and Distribution Channels.
Based on the Type, the middle east has a liquor market for Beer, Spirits, Wine, Cider, Perry & Rice Wine, and Hard Seltzer. In 2021, the beer segment held a significant share. This is because the beer segment has been consistently growing over the past few years. This has led to an increasing number of individuals opting for craft beers, flavorful beers, and other such varieties. Additionally, an increasing number of consumers are opting for low-calorie and low-alcohol beers. This trend is expected to continue in the coming years, leading to further growth in the beer segment. Furthermore, the growing popularity of beer-based cocktails and other innovative products is anticipated to drive the segment’s growth. For example, the “Radler” beer style, which is a mix of beer and fruit-flavoured soda, has gained immense popularity in recent years and is expected to drive the beer segment’s growth in the forecasted period.
Based on Distribution Channel, the market is classified as Pubs, Bars & Restaurants, Internet Retailing, Liquor Stores, Grocery Shops, Supermarkets and Others. In 2021, the segment is expected to account for a significant share of liquor stores. This is due in part to the increasing demand for alcoholic beverages as well as the growing trend of social gatherings, which boost sales for liquor stores. Additionally, the introduction of online ordering and delivery services in the liquor store industry has made it more convenient for customers to purchase alcohol. Furthermore, the convenience and availability of online ordering and delivery services have created a more accessible and enjoyable shopping experience for customers. This has contributed to the growth of the liquor store segment.
By Distribution Channel
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