Middle East & African Alcoholic Beverage Market is expected to register a CAGR of 3.45%, over the forecast period, 2020-2025.
- Key factors driving the growth of the alcoholic beverage market in the Middle East & Africa is the increased consumption of alcohol among the young-adult demographics.
- Witblits is a brandy made from grapes, usually by using leftovers from the winery and is of great demand in Soth Africa. Similarly, Arrack is a distilled alcoholic drink typically produced in the Indian subcontinent and is famous in the countries of the Middle East. Thus, the growing demand for traditional alcoholic beverages is likely to boost the growth of the market in the near future.
- Conversely, the production of Mampoer in South Africa is strictly controlled by the government due to its strength. Thus, the market of the particular drink is anticipated to witness a retarded growth in the forecast period.
Key Market Trends
South Africa is the Largest Share Holder in the Regional Alcoholic Beverage Market
South Africa is the largest shareholder in terms of the consumption of alcoholic beverages in the region. This is primarily due to the influence of the colonial rule over the country in the past that has developed the interest of the people in consuming more of these beverages. Witblits and Moonshine are a part of the culture of South Africa. The former is a clear spirit that has been distilled in the Western Cape for years. Amarula is a cream liqueur from South Africa, made with sugar, cream and the fruit of the African marula tree which is also locally called the Elephant tree or the Marriage Tree. According to the World Health Organisation, South African consumers of alcohol are some of the heaviest drinkers globally and consume 28.9 litres of pure alcohol per capita of the drinking population. This is despite relatively high levels of abstinence in the population.
Increasing demand for Spirits and Beer
Consumers in the Middle Eastern countries are well-to-do and have higher buying power due to the strong economy. The young population of the countries in the region is highly influenced by Western culture and has been adopting their habits and lifestyle lately. Due to this reason, the sales of beer and other spirits are elevating. Nevertheless, with the improving standards of living in South Africa, consumers can now afford better brands than before due to which the demand for foreign brands is increasing in the country. Therefore, the basic development of the society in the region along with improving per capita expenditure over time is expected to fuel the demand for alcoholic beverages in the region.
The Middle East & Africa alcoholic beverage market is moderately fragmented due to the presence of several private players, involved in the processing of local spirits and wines. Amarula is a cream liqueur from South Africa is the need of the South African market and various manufacturers have been actively working to satiate the corresponding demand. Also, there is a similar demand for the local drinks in the Middle East region, apart from the products from globally renowned brands. Therefore, geographical expansion and mergers and acquisitions are being practiced by the major players to pump up their revenues, while the private players are focusing to continue producing the traditional beverages along with the ones of western-origin.
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