Report Overview

UAE Alcoholic Beverages Market - Industry Trends & Forecast Report, 2029

UAE Alcoholic Beverages Market size is projected to grow at a CAGR of 12.25% during the forecast between 2023 and 2029. Major growth drivers for the UAE Alcoholic Beverages Market include an increasing demand for beer, wine, and spirits. Pubs, taverns, and restaurants are expected to contribute to market growth in the forecast period. The rise in alcohol consumption among young adults is a key factor, with a growing interest in premium beverages, particularly among millennials. However, the UAE government addresses the needs of its significant non-Muslim expatriate community by permitting them to purchase and consume imported alcohol, albeit under regulated conditions. The distribution and sale of alcoholic beverages are carefully monitored and restricted to designated areas. While the UAE is relatively open in the Middle East, it upholds a traditional culture that opposes intoxication, consistent with Islamic values influencing its legal system. Nevertheless, recent developments indicate changing perspectives on alcohol, particularly for non-Muslims, who now enjoy increased flexibility in their consumption, provided they adhere to specific guidelines. The industry has an opportunity to tap into the demand for competitively priced hard seltzer products. Major players are exploring e-commerce platforms to enhance commercial prospects. The focus on lower-alcohol content products aligns with the growing preference for non-alcoholic beverages, impacting industry growth.

Alcoholic Beverages – Overview

An alcoholic beverage is a drink that contains ethanol (CH3CH2OH) as its primary intoxicating agent. Ethanol, a form of alcohol, is produced through the fermentation of fruits, grains, or other sugar sources and acts as a psychoactive drug. These beverages come in various forms, including beer, spirits, and wine. Not only are they flammable and colorless liquids, but they also encompass a wide range of flavors, aromas, and alcoholic content levels. Alcoholic beverages play significant roles in social and cultural contexts, often being consumed for recreational, celebratory, or ritualistic purposes. The production and consumption of these beverages are subject to diverse regulations and traditions, shaping their role in societies worldwide.

UAE Alcoholic Beverages Market

Growth Drivers

Increasingly High Urbanization

The surge in demand for alcoholic beverages in the UAE is propelled by the rapid urbanization across the country. While Islamic law prohibits Muslims from consuming alcohol, the UAE's diverse demographic, where 85% are expatriates, fosters a more lenient attitude. The predominant expatriate population, coupled with ongoing urbanization, positions the UAE as having the largest expat community in the Gulf Corporation Council (GCC). Factors such as the expanding expatriate community, an influx of tourists, and infrastructure projects, notably those linked to Expo 2020, contribute to shaping the urban environment. Notably, alcohol consumption is notably high in hotels and hospitality venues, driven by the thriving tourism industry. As the population and urban development escalate, the demand for alcoholic beverages in the UAE is anticipated to witness substantial growth.

Restraints

Health Concerns Related to Overconsumption of Alcohol Beverages

Health considerations pose a significant growth constraint for the UAE Alcoholic Beverages Market. Despite an overall increase in demand for alcoholic beverages, a discernible segment of health-conscious consumers is opting for non-alcoholic alternatives. Industry leaders are responding by prioritizing the development of beverages with reduced alcohol content. Furthermore, the escalating preference for healthier lifestyles has resulted in a notable uptick in the consumption of non-alcoholic beverages, impeding the expansive growth of the alcoholic beverages market in the UAE. This shift in consumer behavior underscores a broader global trend towards wellness and choices aligned with health consciousness.

UAE Alcoholic Beverages Market

Segmental Coverage

UAE Alcoholic Beverages Market – By Type

By type, the UAE Alcoholic Beverages Market is divided into Beer, Distilled Spirits, and Wine segments. The distilled spirits type segment is expected to hold the highest share in the UAE Alcoholic Beverages Market during the forecast period. The cultural diversity and the presence of a significant expatriate population contribute to a diverse consumer base with varied preferences. Distilled spirits, such as whiskey and vodka, appeal to a broad spectrum of consumers, aligning with the cosmopolitan nature of the UAE. Also, the rising popularity of premium and crafted spirits among consumers, coupled with evolving drinking trends, is expected to drive the demand for distilled spirits, positioning them as a leading category in the market.

UAE Alcoholic Beverages Market – By Distribution Channel

Based on distribution channel, the UAE Alcoholic Beverages Market is bifurcated into Offline and Online segments. The offline segment holds a higher share in the UAE Alcoholic Beverages Market by distribution channel due to the country's regulations and licensing practices. The UAE permits the operation of licensed retail outlets, specialized alcohol shops, hotels, restaurants, and bars, providing physical spaces for legal purchase and consumption of alcoholic beverages. This regulatory framework encourages a robust offline market, where consumers can visit these establishments for socializing or home consumption. The government's efforts to streamline licensing processes and eliminate alcohol sales tax further support the offline segment, making it more accessible and convenient for businesses and consumers alike.

Competitive Landscape

Major players operating in the UAE Alcoholic Beverages Market include
Diageo PLC, Bacardi Limited, Constellation Brands Inc., Anheuser-Busch InBev, Heineken Holding NV, Molson Coors Brewing, Gruppo Campari, Asahi Breweries, Moët Hennessy Louis Vuitton, and Carlsberg. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In 2023 - CityDrinks, an alcohol delivery app in Abu Dhabi, launched its operations following legalization.

Scope of the Report

By Type

• Beer

• Distilled Spirits

• Wine

By Distribution Channel

• Offline

• Online

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. UAE Alcoholic Beverages Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising popularity of mixology
         2. Growing urbanization
      2. Restraints
         1. Health concerns
      3. Opportunities
         1. Rising disposable incomes
      4. Challenges
         1. Stringent government regulations
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. UAE Alcoholic Beverages Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Beer
            1. Ale
            2. Lager
            3. Hybrid
         2. Distilled Spirits
            1. Rum
            2. Whiskey
            3. Vodka
            4. Others
         3. Wine
            1. Sparkling Wine
            2. Fortified Wine
            3. Others
         4. Others
      2. By Distribution Channel
         1. Offline
         2. Online
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. UAE Alcoholic Beverages Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on UAE Alcoholic Beverages Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Diageo PLC
   2. Bacardi Limited
   3. Constellation Brands Inc.
   4. Anheuser-Busch InBev
   5. Heineken Holding NV
   6. Molson Coors Brewing
   7. Gruppo Campari
   8. Asahi Breweries
   9. Moët Hennessy Louis Vuitton
   10. Carlsberg
   11. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1.   Primary & Secondary Research
   2.    Quantitative Research
   3.    Market Breakdown & Data Triangulation
      1.   Secondary Research
      2.   Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       UAE Alcoholic Beverages  Segmentation

Figure 2       UAE Alcoholic Beverages  Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       UAE Alcoholic Beverages  Market Size, By Value (USD Million), 2019–2029

Figure 5       UAE Alcoholic Beverages  Market Share, By Type,  By Value, 2019–2029

Figure 6       UAE Alcoholic Beverages  Market Share, By Distribution Channel, By Value, 2019–2029

List of Tables

Table 1        UAE Alcoholic Beverages  Market Size, By Value (USD Million), 2019–2029

Table 2        UAE Alcoholic Beverages  Market Size, By Type,  By Value, 2019–2029

Table 3        UAE Alcoholic Beverages  Market Size, By Distribution Channel, By Value, 2019–2029

Table 4        Diageo PLC Company Overview

Table 5        Diageo PLC Financial Overview

Table 6        Bacardi Limited Company Overview

Table 7        Bacardi Limited Financial Overview

Table 8        Constellation Brands Inc. Company Overview

Table 9        Constellation Brands Inc. Financial Overview

Table 10      Anheuser-Busch InBev Company Overview

Table 11      Anheuser-Busch InBev Financial Overview

Table 12      Heineken Holding NV Company Overview

Table 13      Heineken Holding NV Financial Overview

Table 14      Molson Coors Brewing  Company Overview

Table 15      Molson Coors Brewing  Financial Overview

Table 16      Gruppo Campari Company Overview

Table 17      Gruppo Campari Financial Overview

Table 18      Asahi Breweries Company Overview

Table 19      Asahi Breweries Financial Overview

Table 20      Moët Hennessy Louis Vuitton Company Overview

Table 21      Moët Hennessy Louis Vuitton Financial Overview

Table 22      Carlsberg Company Overview

Table 23      Carlsberg Financial Overview