Arak Market by Raw Material (Aniseed, Dates, Dried Flowers, Herbs and Fruits), Alcohol Content (31% to 45%, 46% to 70%, Above 70%), Distribution Channel - Global Forecast 2024-2030

Arak Market by Raw Material (Aniseed, Dates, Dried Flowers, Herbs and Fruits), Alcohol Content (31% to 45%, 46% to 70%, Above 70%), Distribution Channel - Global Forecast 2024-2030

The Arak Market size was estimated at USD 1.09 billion in 2023 and expected to reach USD 1.13 billion in 2024, at a CAGR 4.39% to reach USD 1.47 billion by 2030.

Arak is an alcoholic beverage traditionally made in the Middle East, particularly in countries such as Lebanon, Syria, Iran, and Iraq. It is a clear, unsweetened, distilled spirit that is usually derived from dates, grapes, or other fruits. Arak is typically distilled twice and then infused with aniseed for flavor and is mostly enjoyed by people throughout the region on special occasions and has several health benefits owing to its natural ingredients. The arak is experiencing a surge in popularity, with a growing interest in traditional and craft beverages. Consumers increasingly seek unique and culturally significant drinks, leading to a rise in the demand for arak. Additionally, the international trade activities surrounding arak have expanded, facilitating its distribution and accessibility in global markets. This increased trade has allowed arak to reach a broader audience and cater to the growing interest in Middle Eastern alcoholic beverages. Furthermore, new production technologies bring advancements to the traditional manufacturing process to enhance the production efficiency and quality of arak, leading to improved products for consumers. Simultaneously, there is a growing emphasis on brand building within the arak as producers diversify their offerings by incorporating new flavors and ingredients into arak and focusing on brand building. Moreover, the Arak market is facing challenges due to the fluctuating cost of raw materials and the easy availability of substitute products. Arak producers need to carefully navigate these factors by managing costs effectively and implementing strategies to differentiate arak from other alcohol spirits and emphasize its unique qualities to maintain consumer preference and its easy availability.

Regional Insights

The Arak market in the Americas is a niche, driven by Middle Eastern communities. The U.S., Canada, and Mexico have a presence of Iranian, Lebanese, and Syrian communities showing interest in arak. Arak brands such as Razzouk and Gantous & Abou Raad are preferred, although limited branding and awareness hinder market penetration. Furthermore, in the APAC, there is a growing interest in arak and Middle Eastern alcoholic beverages among certain communities and establishments in the region. Australia has witnessed a rise in the availability and consumption of arak, particularly in cities with diverse culinary scenes and a growing interest in international spirits. However, in cosmopolitan cities with diverse populations and culinary scenes, such as Singapore, Hong Kong, and Dubai, it is possible to find arak in specialty liquor stores or establishments that cater to international spirits. Moreover, the geographic landscape of arak in the EMEA region is diverse, with significant variations in arak production, consumption, and availability across different countries. It is deeply rooted in the Middle Eastern drinking culture and is primarily consumed in countries such as Lebanon, Syria, Iran, and Iraq. Countries such as Germany, France, and the United Kingdom have also witnessed a growing demand for arak, often driven by consumers exploring unique spirits from around the world. The availability and consumption of arak in different countries within the EMEA region can vary, and it is often influenced by factors such as cultural ties, diaspora communities, and international trade.

Market Insights

• Market Dynamics
  
  The market dynamics represent an ever-changing landscape of the Arak Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.
  • Market Drivers
    • Growing popularity of traditional and craft beverages
    • Increasing international trade activities of arak
    • Market Restraints
      • Fluctuating cost of raw materials used in arak
      • Market Opportunities
        • Addition of new flavors and ingredients in arak
        • Emerging focus on brand building and packaging of arak
        • Market Challenges
          • Easy availability and preference for substitute products
          • Market Segmentation Analysis
            • Raw Material: Growing use of aniseed for flavor development
            • Alcohol Content: Significant popularity of Arak with alcohol content 31%-45% and 46%-70% due to rich flavor profiles and cultural significance
            • Distribution Channel: wider availability of arak from restaurants & bars
            • Market Disruption Analysis
            • Porter’s Five Forces Analysis
            • Value Chain & Critical Path Analysis
            • Pricing Analysis
            • Technology Analysis
            • Patent Analysis
            • Trade Analysis
            • Regulatory Framework Analysis
            FPNV Positioning Matrix
            
            The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Arak Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
            
            Market Share Analysis
            
            The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Arak Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
            
            Recent Developments
            • Four Pillars and QT Hotels Have Teamed Up on a Limited-Edition Wild Fennel, Sage and Vetiver Gin
              
              Four Pillars and QT Hotels and Resorts joined forces on a Limited-Edition Wild Fennel, Sage, and Vetiver Gin. Through this partnership, consumers can drink their combined produced alcoholic drinks at the hotel chain or order liquor cabinets at home.
              
              Bacardi serves up new Bombay Sapphire Premier Cru GTR exclusive
              
              Bacardi has released a new gin, Bombay Sapphire Premier Cru, in partnership with Global Travel Retail (GTR) as an exclusive release. The new gin contains no artificial flavors or essences, and the botanicals used are 100% sourced from sustainably certified suppliers. With its unique Italian flavors, Bombay Sapphire Premier Cru Tuscan Juniper brings gin lovers the opportunity to savor and appreciate the nuances of its pure and multi-layered taste profile. The special edition will be available in all GTR markets, from Duty-free outlets to travel retail sites in airports and ports.
              
              Bushmills opens GBP 37m Causeway Distillery
              
              Bushmills, the world-renowned Irish whiskey distillery, has opened a new GBP 37 million facility in Causeway, Northern Ireland. The new facility will allow Bushmills to produce a much larger quantity of whiskey and is part of their general project to expand globally.
            Strategy Analysis & Recommendation
            
            The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Arak Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
            
            Key Company Profiles
            
            The report delves into recent significant developments in the Arak Market, highlighting leading vendors and their innovative profiles. These include Arak Fakra, Bandesh Wine & Spirits, Chateau Ksara, Domaine des Tourelles, Domaine Wardy, Eagle Distilleries, Evaton Inc., Haddad Distilleries, Iberian Coppers Lda, Karam Wines, Kawar, LAC Products, Lebanese Fine Wines Ltd., Massaya, Miami Arak, Muaddi Craft Distillery, Ltd., RIACHI, Victor Kosher Wine, VOS Selections, and Zumot.
            
            Market Segmentation & Coverage
            
            This research report categorizes the Arak Market to forecast the revenues and analyze trends in each of the following sub-markets:
            • Raw Material
              • Aniseed
              • Dates
              • Dried Flowers, Herbs and Fruits
              • Grapes
              • Alcohol Content
                • 31% to 45%
                • 46% to 70%
                • Above 70%
                • Less than 30%
                • Distribution Channel
                  • Distilleries
                  • Duty-free Stores
                  • Liquor Stores
                  • Online Retailers
                  • Restaurants & Bars
                  • Region
                    • Americas
                      • Argentina
                      • Brazil
                      • Canada
                      • Mexico
                      • United States
                        • California
                        • Florida
                        • Illinois
                        • New York
                        • Ohio
                        • Pennsylvania
                        • Texas
                        • Asia-Pacific
                          • Australia
                          • China
                          • India
                          • Indonesia
                          • Japan
                          • Malaysia
                          • Philippines
                          • Singapore
                          • South Korea
                          • Taiwan
                          • Thailand
                          • Vietnam
                          • Europe, Middle East & Africa
                            • Denmark
                            • Egypt
                            • Finland
                            • France
                            • Germany
                            • Israel
                            • Italy
                            • Netherlands
                            • Nigeria
                            • Norway
                            • Poland
                            • Qatar
                            • Russia
                            • Saudi Arabia
                            • South Africa
                            • Spain
                            • Sweden
                            • Switzerland
                            • Turkey
                            • United Arab Emirates
                            • United Kingdom
                            
                            
                            Please Note: PDF & Excel + Online Access - 1 Year

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