Report Overview

Thriving tourism industry in the country, growing expatriate population, increasing disposable incomes, and changing social attitudes toward alcohol are expected to boost the growth of the UAE Beer and Cider Market during the forecast period between 2024 and 2030.

UAE Beer and Cider Market – Industry Trends & Forecast Report, 2030

UAE Beer and Cider Market size by value was estimated at USD 121.99 million in 2023. During the forecast period between 2024 and 2030, the UAE Beer and Cider Market size is expected to expand at a CAGR of 4.66% reaching a value of USD 142.98 million by 2030. Prominent drivers of the UAE Beer and Cider are growing expatriate population contributing to increased cultural diversity and demand for diverse beverage options. Additionally, relaxation of regulations and licensing laws has encouraged the growth of the alcohol industry. Tourist influx, particularly in cities like Dubai and Abu Dhabi, drives demand in the hospitality sector. Moreover, the rising trend of socializing in bars, clubs, and restaurants fuels consumption. Furthermore, innovative marketing strategies by leading breweries and cider producers, coupled with the introduction of new flavors and products, stimulate market growth. Notably, international brewing giants like Heineken and Carlsberg have made significant investments in the region, further shaping market dynamics.

By volume, the UAE Beer and Cider Market size was estimated at 156.28 million liters in 2023. By 2030, the UAE Beer and Cider Market size is projected to reach the volume of 193.71 million liters by 2030. This expansion can be attributed to several driving factors. Firstly, the country's thriving tourism industry fuels demand, with a significant influx of tourists seeking diverse beverage options. Secondly, changing consumer preferences and a growing expatriate population contribute to the increasing consumption of beer and cider. Additionally, the relaxation of regulations and cultural attitudes towards alcohol consumption further stimulate market growth. Recent events, such as the Expo 2020 Dubai, have provided platforms for breweries to showcase their products, fostering market visibility and consumer engagement. Despite local production efforts, the UAE continues to rely on imports to meet the escalating demand, presenting opportunities for international breweries to penetrate the market further.

Beer and Cider – Overview

Beer and cider are both popular alcoholic beverages with distinct origins and production processes. Beer, traditionally brewed from malted barley, undergoes fermentation to produce ethanol and carbonation. Hops are commonly added for bitterness and preservation. Cider, on the other hand, is crafted from fermented apple juice, prominent in regions like the United Kingdom and Ireland. Varieties exist globally, with differing alcohol content and flavor profiles. While cider enjoys popularity in the United Kingdom and its former colonies, beer is a staple worldwide, with diverse styles and brewing traditions. Both beverages hold cultural significance and are enjoyed in various social settings internationally.

UAE Beer and Cider Market

Growth Drivers

Urbanization and Evolving Consumption Patterns

Over the last decade, the UAE Beer and Cider Market has witnessed remarkable growth, driven by urbanization, burgeoning tourism, and evolving consumption patterns. The surge is notably attributed to the emergence of craft breweries, introducing a diverse array of artisanal brews to meet the demand for unique flavor profiles. Moreover, the increasing preference for cider among the youth demographic has significantly contributed to market expansion. The convergence of these factors underscores a dynamic shift in consumer preferences, fueling the flourishing trajectory of the UAE's beer and cider industry.

Dynamic Forces Fueling Growth of UAE Beer and Cider Market

In the bustling landscape of UAE, beer and cider aficionados are spoiled for choice with iconic brands like Heineken, Carlsberg Group, and Anheuser-Busch InBev dominating the scene. These household names bring a vibrant tapestry of flavors and styles, enticing consumers with their top-notch quality and unwavering consistency. From the refreshing zest of Heineken to the bold richness of Carlsberg, and the irresistible allure of Anheuser-Busch InBev's offerings, each sip is an adventure. As these brands continue to captivate UAE's discerning drinkers, they propel the market forward, fostering a culture of enthusiasm and exploration.

Challenges

Competition from Alternate Beverages

In the dynamic landscape of the UAE Beer and Cider Market, the exponential competition from alternative beverages presents a significant challenge. With increasing consumer preferences for healthier options and non-alcoholic alternatives, beer and cider brands must innovate to maintain market relevance. Rising demand for craft sodas, flavored waters, and functional beverages adds to the competitive pressure. Adapting to shifting consumer tastes, enhancing marketing strategies, and diversifying product offerings to cater to evolving preferences are essential for breweries and cider producers to thrive amidst this intensifying competition.

Impact of Escalating Geopolitical Tensions on UAE Beer and Cider Market

Escalating geopolitical tensions can significantly impact the UAE Beer and Cider Market due to potential disruptions in trade routes, increased import costs, and shifts in consumer behavior. For instance, heightened tensions in the Middle East can lead to stricter regulations or taxes on alcohol imports, affecting market accessibility. Events like trade embargoes or sanctions targeting key trading partners could limit product availability and increase prices. Moreover, escalating tensions may influence consumer sentiment, leading to changes in purchasing habits or a shift towards non-alcoholic alternatives. Given the UAE's reliance on imports for alcohol products, any geopolitical instability in exporting countries could directly affect the supply chain and availability of beer and cider in the market, potentially leading to decreased sales and profitability for industry players.

UAE Beer and Cider Market

Segmental Coverage

UAE Beer and Cider Market – By Product Type

Based on product type, UAE Beer and Cider Market is divided into Beer (Lager, Ale, Stout, Pilsner, Wheat Beer, Specialty Beer (including IPA and Porter); Cider (Apple Cider, Pear Cider, and Flavored Cider segments.

UAE Beer and Cider Market – By Packaging

Based on packaging, UAE Beer and Cider Market is divided into Bottles, Cans, Kegs, and Draft segments.

UAE Beer and Cider Market – By Price Range

By price range, UAE Beer and Cider Market is divided into Premium, Mid-range, Economy segments.

UAE Beer and Cider Market – By Distribution Channel

By distribution channel, UAE Beer and Cider Market is divided into On-trade (Bars, Pubs, and Restaurants) and Off-trade (Retail Stores, Supermarkets, and Convenience Stores), and Online Retail segments.

Competitive Landscape

Major players in the UAE Beer and Cider Market include Heineken, Carlsberg Group, Anheuser-Busch InBev, Asahi Group, Diageo, Efes Beverage Group, Brooklyn Brewery, and BrewDog. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Product Type

• Beer

1. Lager

2. Ale

3. Stout

4. Pilsner

5. Wheat Beer

6. Specialty Beer (including IPA, Porter)

• Cider

1. Apple Cider

2. Pear Cider

3. Flavored Cider

4.  

By Packaging

• Bottles

• Cans

• Kegs

• Draft

By Price Range

• Premium

• Mid-range

• Economy

By Distribution Channel

• On-trade

1. Bars

2. Pubs

3. Restaurants 

• Off-trade

1. Retail Stores

2. Supermarkets

3. Convenience Stores

• Online Retail