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Top Growth Opportunities: Wine in the UAE

Top Growth Opportunities: Wine in the UAE

Summary

UAE is home to an extremely fast growing wine market, powered by a buoyant economy featuring large scale immigration and rapid economic development. UAE Wine market registered strong growth at a CAGR of 20.5% during 2011-2016. However, weakening oil prices, slower oil output growth and scheduled VAT introduction in 2018 will impact the economy during 2016-2021 which in return will result in slowing down of both value and volume sales of Wine products during the same period. Consequently, the market is forecast to register slower growth during 2016-2021.

UAE Wine market is projected to continue to grow rapidly during 2016-2021. Though the growth CAGR will drop; as it is inevitable to an extent as the market is no longer benefitting from an extremely small size which can make extremely rapid growth rates a possibility.

Wine in the UAE is only available to around 1/5th of the population, as Muslims are not permitted to drink alcohol in the country. Non-Muslims have to apply for and receive an alcohol permit in order to buy alcohol, though this is merely a formality and all non-Muslims, including tourists, can buy alcohol in hotel bars. Despite alcohol being outlawed for the Muslim population and the penalties for drunkenness amongst this group being severe, there is a large, a rapidly growing demographic of wealthy non-Muslims who enjoy drinking alcohol are driving market growth in both value and volume terms. Tourism from non-Muslim countries has also been a major factor.

Amongst the top ten Wine markets, the UAE ranks sixth in terms of per capita expenditure in US$, larger than Japan, South Korea, China and Malaysia. Further, the per capita expenditure on Wine products grew strongly by 19.1% CAGR during 2011-2016. This growth is primarily attributed to huge influx of tourists in the country each day who are willing to spend more on premium Wine products to relish their stay.

The report Top Growth Opportunities: Wine in the UAE, provides recommended actions and detailed analysis of how to target the best growth opportunities for Wine producers and retailers. Readers can understand what categories, channels, companies, and consumers will drive the success of Wine markets in UAE through our detailed and robust data, expert insight, and case studies.

Furthermore, this report provides the following -

  • Key consumer demographic groups driving consumption within the UAE market. Improve your consumer targeting by understanding who’s driving the market, what they want, and why.
  • A study of market value and volumes over 2011-2016 for UAE, supplemented with category, brand and packaging analysis that shows the current state of the market, and how it will evolve over the 2016-2021 period.
  • White space analysis, to pinpoint attractive spaces in the market and the key actions to take.
  • Insight into the implications behind the data, and analysis of how the consumer needs will evolve in the short-to-medium term future.
  • Examples of international and regional product innovation targeting key consumer needs.
Companies mentioned in this report: African & Eastern, MMI Dubai, Accolade Wines, Nino Franco, LMVH

Scope
  • The UAE is a relatively small market in the global Wine sector in terms of value in US$ terms.
  • The UAE market is amongst the fastest growing in the world
  • Wine consumption is centered on the substantial western expat community.
  • The mature tastes and premium factors attached to Wine products are driving consumption within this group.
  • Over 2016-2021, still wine will remain the highest value category and alongside fortied wine it is expected to record loss of share growth in the same period with sparkling wine gaining market share
Reasons to buy
  • This report brings together consumer analysis and market data to provide actionable insight into the behavior of the UAE's Wine consumers.
  • This is based on GlobalData's unique consumer data, developed from extensive consumption surveys and consumer group tracking, which quantifies the influence of 20 consumption motivations in the Wine sector.
  • Category, brand, and packaging dynamics are also examined. This allows product and marketing strategies to be better aligned with the leading trends in the market.


1. Introducing a top growth market for Wine
Top 10 global growth opportunities scores
Top global issues
Assessment against global strategic issues
GlobalData’s strategic issues map
Predicted future issues for the global sector
Reward and risk assessment
Opportunity score - overview
Consumer spending trends - peer group comparisons
Political, Economic, Social, and Technological: Analysis
Enablers and inhibitors of growth
Rewards and opportunities for growth
Summary of the market
2. Market insight - identifying the opportunities to move into
Market growth by category
Value growth of the market
Volume growth of the market
Level of premiumization by category
Category analysis - key drivers of change
3. Retail and distribution insight - key channels and retailers driving growth
Wine retail channel share
Key Retail Channel trends
Routes to market
Drivers of change in the sector
4. Company and brand insight - the competitive landscape defined
Category fragmentation
Company and brand strength
International and domestic brand analysis
Company and brand strength summary
5. Consumer insight - who, what, when, where and why
Strategic issues map
Key consumer driver implications
Key consumers trends
Consumer groups
Key Health & Wellness trends
Consumer trends summary
6. Product and packaging insights
Key Product Insights
Trends and strategic issues - other notable product trends
Key product innovation case studies
Key Packaging Insights
Trends and strategic issues
Product launch key takeouts
7. White spaces and innovation opportunities - space to move into
Growth segments to target
Segment opportunities
Product launch key takeouts
Key recommendations
8. Appendix and Definitions
List of Tables
Visualization of 10 countries growth opportunities
Visualization of 10 countries growth opportunities (continued)
Reward and risk assessment
Market value and split, 2011-2021
Winners and losers by category, value, 2016-2021
Winners and losers by category, volume, 2016-2021
Key consumption volume shares by consumer group, 2016
List of Figures
Map of top opportunity markets
Map of top global issues
Global issue web
GlobalData’s strategic issues map
Average consumer spend, peer group comparisons, 2011-2021
Market value and split, 2011-2021
Value growth by category, 2011-2016 and 2016-2021
Value market growth by category, 2011-2021
Winners and losers by category, volume, 2016-2021
Value and volume growth by category, 2011-2021
Fragmentation by category, 2011-2016
Packaging materials volume share, 2016 & 2021
Packaging closure materials volume share, 2016 & 2021
Projected CAGR for top five categories by value, 2016-2021

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