Spirits - United Arab Emirates

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

Customer preferences: Customers in United Arab Emirates have shown a growing interest in premium and high-quality spirits. They are increasingly willing to spend more on luxury brands and unique offerings. The demand for craft spirits, such as small-batch gin and artisanal vodka, has been on the rise. Consumers are also seeking out spirits with unique flavors and botanical infusions.

Trends in the market: One of the key trends in the Spirits market in United Arab Emirates is the increasing popularity of whisky. Whisky has gained a strong following among consumers, with both domestic and international brands experiencing growth. This can be attributed to the growing appreciation for the craftsmanship and complexity of whisky, as well as the influence of Western culture and lifestyle trends. Another trend in the market is the rise of cocktail culture. Consumers are becoming more adventurous in their drink choices and are experimenting with different flavors and ingredients. This has led to an increased demand for spirits that are versatile and can be used in a variety of cocktail recipes.

Local special circumstances: The Spirits market in United Arab Emirates is influenced by local cultural and religious factors. The country has a predominantly Muslim population, and alcohol consumption is subject to strict regulations. The sale and consumption of alcohol are restricted to licensed venues, such as hotels, restaurants, and bars. This has created a unique market environment, where consumers primarily purchase spirits for consumption in these establishments.

Underlying macroeconomic factors: The growth of the Spirits market in United Arab Emirates can be attributed to several underlying macroeconomic factors. The country has a strong economy and a high per capita income, which has increased the purchasing power of consumers. This has allowed them to spend more on premium spirits and indulge in luxury experiences. Furthermore, United Arab Emirates is a popular tourist destination, attracting visitors from around the world. The tourism industry plays a significant role in driving the demand for spirits, as tourists often seek out local and exotic drinks during their stay. The country's efforts to promote tourism and attract international visitors have contributed to the growth of the Spirits market. In conclusion, the Spirits market in United Arab Emirates is experiencing growth due to customer preferences for premium and high-quality spirits, the popularity of whisky and cocktail culture, local special circumstances such as strict regulations on alcohol consumption, and underlying macroeconomic factors such as a strong economy and a thriving tourism industry.

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.