Beer - United Arab Emirates

The Beer market in United Arab Emirates has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for this growth is the changing preferences of consumers in United Arab Emirates. With the increasing influence of Western culture and the rise of tourism in the region, there has been a growing demand for beer among both locals and expatriates. Beer is now seen as a popular alcoholic beverage of choice, especially among the younger generation.

Trends in the market: The beer market in United Arab Emirates is witnessing several key trends. One of the major trends is the increasing popularity of craft beer. Craft breweries are emerging in the country, offering a wide range of unique and flavorful beers. This trend is driven by consumers' desire for high-quality and locally-produced products. Another trend is the growing demand for low-alcohol and non-alcoholic beers. Health-conscious consumers are seeking alternatives to traditional beers, and breweries are responding by introducing new products that cater to this market segment. Additionally, there is a growing interest in flavored beers, with breweries experimenting with different flavors to attract consumers.

Local special circumstances: United Arab Emirates has a unique set of circumstances that contribute to the growth of the beer market. The country has a large expatriate population, with people from different countries and cultures residing in the region. This diversity has led to a demand for a variety of beer styles and flavors, as consumers seek to enjoy the tastes of their home countries. Furthermore, the government has been supportive of the beer industry, allowing for the establishment of breweries and the importation of beer from around the world. This has created a favorable environment for the growth of the market.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the beer market in United Arab Emirates. The country has a strong and stable economy, with a high GDP per capita. This has led to increased disposable income among consumers, allowing them to spend more on leisure activities such as dining out and socializing, which often includes the consumption of beer. Additionally, the tourism industry in United Arab Emirates has been booming in recent years, attracting visitors from around the world. These tourists often seek out local experiences, including trying the local beer, which has further fueled the demand for beer in the country. Overall, the combination of changing consumer preferences, local special circumstances, and underlying macroeconomic factors has contributed to the growth of the beer market in United Arab Emirates.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.