Press Release

Arak Market is Expected to Reach USD 1.64 Billion By 2030

Food & Beverages Oct 3, 2022

The global arak market is expected to grow from USD 1.26 billion in 2021 to USD 1.64 billion by 2030, at a CAGR of 3.01% during the forecast period 2022-2030, as per the report published by The Brainy Insights.

The market for arak will be driven by consumers' increasing interest in traditional beverages like arak. Given the rising demand for arak in North America, Europe, and the Asia Pacific, the commercial production of arak has been increasing in momentum. The creation of arak varieties and the incorporation of arak into cocktails are factors driving up arak consumption globally. The rising demand for restaurants, pubs, and bars due to the shifting demography in developing nations, where the proportion of young people is growing, will provide lucrative opportunities for the arak market. The high per capita income of the people in the developed countries has led to an increase in demand for nightclubs, bars, and pubs which will benefit the arak market. The demand for arak will significantly increase in line with the growing number of restaurants and pubs. Market players can cooperate and work with multiple bars and pubs to expand the number of arak customers and thereby benefit from the rising number of bars, pubs, and restaurants. However, high production costs can restrict market development. Furthermore, the absence of a universal regulatory body to control, monitor, and regulate the arak production, distribution and consumption will challenge the market's growth. Streamlining the production process, supply chains, and regulations can mitigate the restrictions and challenges for the market players.

Competitive Strategy

To enhance their market position in the global arak market, the key players are now focusing on adopting the strategies such as product innovations, mergers & acquisitions, recent developments, joint ventures, collaborations, and partnerships.

  • August 6, 2022 - Vamos Todos hosted a tour of three wine and arak manufacturing facilities in Lebanon's Bekaa Valley. The program began with a visit to the Domaine Des Tourelles winery, where attendees could see Château Heritage and Château Nakad and taste wine and arak. Lunch was also provided for the attendees at the Hotel Massabki in Chtaura. Such initiatives to attract tourists and spread the heritage of arak will bode well for the market.

Market Growth & Trends

Consumer interest and awareness in traditional drinks like arak are expected to increase, which would fuel market expansion for arak. The increased demand for alcoholic beverages due to the rising young population and consumer disposable income would further aid in the market's expansion. The Middle East's long-standing tradition of using arak as a social drink at dinners and other events has helped the arak market expand. The market will gain from the increased commercial production of arak due to its growing appeal outside of the Middle East and Africa. Due to the popularity of arak in cocktails and other alcoholic beverage combinations and a rise in the number of bars, restaurants, and pubs worldwide, the market is expected to grow positively during the forecast period.

Key Findings

  • In 2021, the merwah grapes segment dominated the market with the largest market share of 53% and market revenue of 0.66 billion.

The product type segment is divided into anise seeds, merwah grapes, and others. In 2021, the merwah grapes segment dominated the market with the largest market share of 53% and market revenue of 0.66 billion.

  • Over the forecast period, the commercial segment will grow at the fastest CAGR of 6.13%.

The application segment is divided into residential and commercial. Over the forecast period, the commercial segment will grow at the fastest CAGR of 6.13%.

  • In 2021, the liquor shops segment accounted for the largest share of the market, with 37% and a market revenue of 0.46 billion.

The distribution channel segment is divided into a liquor shops, bars & pubs, travel retail, and others. In 2021, the liquor shop segment accounted for the largest share of the market, with 37% and a market revenue of 0.46 billion.

Regional Segment Analysis of the Arak Market

  • North America (U.S., Canada, Mexico)
  • Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
  • Asia-Pacific (China, Japan, India, Rest of APAC)
  • South America (Brazil and the Rest of South America)
  • The Middle East and Africa (UAE, South Africa, Rest of MEA)

The Middle East and Africa emerged as the largest market for the global arak market, with a market share of around 36.34% and 0.45 billion of the market revenue in 2021. The Middle East and Africa is expected to be the largest market during the forecast period. The Arak market in the Middle East and Africa has been expanding rapidly. Arak in the Middle East and Africa is dominated by Lebanon, Jordan, Syria, Palestine, Egypt, and Israel. The largest arak producing middle eastern and African countries are situated in a specific climate zone favorable for growing citrus fruits like grapes. Grapes form the base inputs for arak; hence, the region has a well-established arak producing industry. Lebanon, Jordan, Israel, Syria, and Egypt contribute more than 50% of the global arak production. Along with production, the Middle Eastern and African region is a leading arak consumption market where arak is the most consumed beverage. For instance, arak is Lebanon's national drink, and Lebanon produces arak made from merwah grapes found in the Beqaa valley of Lebanon. Similarly, arak is also known as the national alcoholic beverage of Jordan, Palestine, Syria, and Israel. The significant presence of commercial arak producers in the region also contributes to the development of the market.

Key players operating in the global arak market are:

  • Abi Raad Group Sarl
  • Chateau Ksara
  • Domaine des Tourelles
  • Eagle Distilleries Co.
  • Haddad Distilleries
  • Kawar Arak
  • Lebanese Arak Corporation
  • Lebanese Fine Wines
  • LibanonWeine
  • Zumot Distilleries

This study forecasts global, regional, and country revenue from 2019 to 2030. The Brainy Insights has segmented the global arak market based on the below-mentioned segments:

Global Arak Market by Product Type:

  • Anise Seeds
  • Merwah Grapes
  • Others

Global Arak Market by Application:

  • Residential
  • Commercial

Global Arak Market by Distribution Channel:

  • Liquor Shop
  • Bars & Pubs
  • Travel Retail
  • Others

About the report:

The global arak market is analyzed based on value (USD Billion). All the segments have been analyzed on a worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report offers an in-depth analysis of driving factors, opportunities, restraints, and challenges for gaining critical insight into the market. The study includes porter's five forces model, attractiveness analysis, raw material analysis, supply, and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.