Wine - GCC

The Wine market in GCC has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in the region have shifted towards wine consumption, with an increasing number of consumers opting for wine as their beverage of choice. This shift can be attributed to a variety of factors, including the growing popularity of wine as a social drink, increasing disposable income, and a desire for a more sophisticated drinking experience. One of the key trends in the Wine market in GCC is the rising demand for premium and imported wines. Consumers in the region are becoming more discerning and are willing to pay a premium for high-quality wines from renowned wine-producing regions around the world. This trend is driven by a desire for exclusivity and a preference for wines with a rich history and tradition. As a result, wine importers and distributors in the GCC are focusing on expanding their portfolio of premium wines to cater to this growing demand. Another trend in the market is the increasing popularity of wine tourism. GCC countries, such as the United Arab Emirates and Oman, are investing in developing their wine tourism infrastructure to attract wine enthusiasts from around the world. This includes the establishment of vineyards, wine tasting experiences, and wine-themed events. The growing interest in wine tourism is not only boosting the local wine industry but also contributing to the overall growth of the hospitality and tourism sectors in the region. Local special circumstances also play a significant role in the development of the Wine market in GCC. The region has a predominantly Muslim population, and alcohol consumption is subject to strict regulations and cultural norms. However, there has been a shift in attitudes towards alcohol consumption in recent years, with an increasing number of non-Muslim residents and tourists in the region. This has created a growing market for wine and other alcoholic beverages, albeit within the confines of the local regulations. Underlying macroeconomic factors, such as economic diversification and urbanization, are also contributing to the growth of the Wine market in GCC. The GCC countries are actively diversifying their economies away from oil dependency and focusing on sectors such as tourism, hospitality, and entertainment. This has led to an increase in disposable income and consumer spending, creating a favorable environment for the wine industry to thrive. In conclusion, the Wine market in GCC is experiencing significant growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The increasing demand for premium and imported wines, the rise of wine tourism, shifting attitudes towards alcohol consumption, and economic diversification are all contributing to the development of the market. As the region continues to evolve and embrace new cultural experiences, the Wine market in GCC is expected to further expand in the coming years.

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.