Press Release Description
Flourishing Tourism and Hospitality Industry Expected to Propel GCC Alcoholic Drinks Market
The GCC Alcoholic Drinks Market size is around 300 million liters in 2023 and projected to grow at a CAGR of around 7.5% during the forecast period of 2024-30, cites MarkNtel Advisors in the recent research report. The GCC region's strategic utilization of the tourism industry to boost tourist arrivals and enhance the contribution of this sector to the nations' GDP is a significant contributing factor to the growth of the GCC Alcoholic Drinks Market. Effective tourism strategies draw more international tourists from diverse backgrounds to this region, increasing demand for various beverages, including alcoholic beverages, as travelers seek cuisine and beverages to enjoy local experiences.
Governments constructing hotels and resorts in their countries and issuing permits to them to allow the sale of alcoholic beverages, increasing consumer access to alcoholic beverages. Furthermore, revenue generated by the tourism sector, including the consumption of such beverages, contributes to government economic diversification efforts. Promoting tourism in the GCC region has been increasing the number of tourists in the country with different cultural and consumption preferences, resulting in a market demand for various types of alcoholic beverages.
Furthermore, the GCC region has a growing youth population, with more than one-third of the population under the age of 25 years. The expanding young population entering into the legal drinking age. Young people with different drinking habits fuel the region's need for pubs and clubs. To meet the rising demand for entertainment from the younger population, some hospitality companies in the GCC region are developing nightlife establishments such as bars, clubs, etc. These bars offer a wide range of alcoholic beverages, especially premium drinks, which could inspire the distributors or retailers to launch new product offers into the market.
Moreover, the bar openings and attracting the attention of local and international tourists to experience the nightlife, resulting in an increase in demand for alcoholic beverages, which are expected to gain momentum in the coming years, further states the research report, “GCC Alcoholic Drinks Market Analysis, 2024.”
On-Trade Segment Would Hold a Major Share of the GCC Alcoholic Drinks Market
Based on the distribution channel, the market is further bifurcated into, on-trade and off-trade. The GCC Alcoholic Drinks Market is projected to witness a significant dominance of the On-Trade segment in the coming years. This dominance is attributed to the fact that many countries in the GCC region require individuals to obtain licenses to consume alcoholic beverages even in the privacy of their homes. Consequently, the On-Trade distribution channel, which encompasses alcohol consumption in specific locations like hotels, bars, and nightclubs, plays a pivotal role in the overall sales of alcoholic drinks within the GCC region.
Furthermore, the appeal of On-Trade channels extends to tourists and expatriates looking to experience the nightlife and social gatherings in the region. The convenience and social ambiance offered by bars and hotels make them attractive choices for those who wish to enjoy alcoholic beverages while adhering to government regulations and local customs, which is further anticipated to enhance the market size during 2024-30.
The UAE is Anticipated to Account for a Prominent Market Share
The UAE would hold a major share of the market in the forecast period. This growth is attributed to the government's progressive approach to alcohol regulation, including relaxation of strict regulations. Additionally, the government's commitment to economic expansion, as outlined in its "Vision 2030" strategy, has played a pivotal role. This strategy has fostered the opening of numerous clubs and bars, which, in turn, positively contributed to the expansion of the alcoholic drinks market.
Furthermore, to attract international visitors, the UAE government revised the existing rule, by reducing the alcohol consumption penalty and prejudice sanctions for non-Muslim citizens. By modifying existing stringent restrictions, the UAE attracts tourists and global corporations, as well as alcoholic beverage producers, which is expected to fuel market growth in the UAE in the upcoming years, as the UAE government create ideal conditions for market expansion during 2024-2030.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Heineken NV, Anheuser-Busch InBev NV, Diageo PLC, Asahi Group Holdings Ltd., Pernod Ricard Groupe, Carlsberg A/S, Aujan Industries, LVMH Moët Hennessy, Bacardi & Co., Molson Coors Brewing Co, and others are looking forward to strengthening their market position.
Key Questions Answered in the Research Report
- What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
- What are the trends influencing the current scenario of the market?
- What key factors would propel and impede the industry across the countries?
- How has the industry been evolving in terms of geography & product adoption?
- How has the competition been shaping across various countries?
- How has the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-30?
- Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?
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