Wine - United Arab Emirates

The Wine market in United Arab Emirates has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: In United Arab Emirates, there has been a growing interest in wine among the population, particularly among the younger generation. Wine is increasingly seen as a sophisticated and trendy beverage choice, and consumers are becoming more knowledgeable about different wine varieties and regions. Additionally, there is a growing demand for premium and imported wines, as consumers seek high-quality products and unique flavors.

Trends in the market: One of the key trends in the Wine market in United Arab Emirates is the increasing popularity of wine consumption in social gatherings and events. Wine is often seen as a symbol of luxury and elegance, and it is commonly served at weddings, parties, and other special occasions. This trend has been further fueled by the rise of wine bars and restaurants that offer a wide selection of wines from around the world. Another trend in the market is the growing preference for organic and biodynamic wines. As consumers become more health-conscious and environmentally aware, there is a rising demand for wines that are produced using sustainable and natural methods. This trend is reflected in the increasing availability of organic and biodynamic wines in the market, as well as the promotion of these products by retailers and distributors.

Local special circumstances: The Wine market in United Arab Emirates is also influenced by local special circumstances. One of the key factors is the high proportion of expatriates living in the country. Many expatriates come from wine-producing countries and have a strong affinity for wine. This has contributed to the demand for a wide range of wine varieties and brands in the market. Furthermore, the strict regulations and cultural norms in United Arab Emirates have also shaped the wine market. The country has a predominantly Muslim population, and alcohol consumption is regulated. While wine is available for purchase in licensed outlets, there are restrictions on its sale and consumption. This has led to a unique market environment, where consumers have limited options for purchasing wine and there is a focus on premium and imported products.

Underlying macroeconomic factors: The growth of the Wine market in United Arab Emirates is also influenced by underlying macroeconomic factors. The country has a strong economy and a high per capita income, which has contributed to the rising affluence and purchasing power of consumers. As a result, consumers are willing to spend more on luxury goods, including wine. Additionally, the tourism industry in United Arab Emirates plays a significant role in driving the wine market. The country attracts a large number of international tourists, many of whom are interested in experiencing the local culture and cuisine. Wine is often seen as a part of the dining experience, and tourists contribute to the demand for wine in hotels, restaurants, and duty-free outlets. In conclusion, the Wine market in United Arab Emirates is experiencing growth due to changing customer preferences, including a growing interest in wine among the younger generation and a demand for premium and imported wines. The market is also influenced by local special circumstances, such as the high proportion of expatriates and the strict regulations on alcohol consumption. Underlying macroeconomic factors, such as a strong economy and a thriving tourism industry, further contribute to the growth of the market.

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.