UAE Draught Beer Market
Description
UAE Draught Beer Market Overview
The UAE Draught Beer Market is valued at USD 1.18 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing popularity of craft beers, a rise in tourism, and the expansion of the hospitality sector. The market has seen a significant shift towards premium and specialty beers, reflecting changing consumer preferences and a growing interest in diverse beer styles. The Middle East & Africa draught beer market, which includes the UAE, generated revenue of USD 1,184.1 million, with keg beer as the largest and fastest-growing segment .
Dubai and Abu Dhabi are the dominant cities in the UAE Draught Beer Market due to their vi
ant nightlife, numerous bars, and restaurants catering to both locals and tourists. The cosmopolitan nature of these cities, combined with a robust tourism industry, has created a conducive environment for the growth of the draught beer segment, making them key players in the market. The expansion of on-premise consumption in these cities aligns with global trends favoring fresh, high-quality draught beer .
In 2023, the UAE government implemented the Federal Decree-Law No. 15 of 2023 on Alcoholic Beverage Regulation, issued by the Ministry of Health and Prevention. This regulation allows the sale of alcohol in more venues, including supermarkets and convenience stores, under specific licensing conditions. The law aims to boost tourism and enhance the hospitality sector, thereby increasing the availability and consumption of draught beer across the country. Licensed venues must comply with operational standards, including age restrictions, product labeling, and responsible service requirements .
UAE Draught Beer Market Segmentation
By Product Type:
The draught beer market is segmented into three main product types: Keg Beer, Canned Draught Beer, and Bottled Draught Beer. Keg Beer is currently the leading sub-segment, driven by its popularity in bars and restaurants where fresh beer is preferred. Canned and bottled options are also gaining traction, particularly among consumers seeking convenience and portability. The trend towards craft beers has further fueled the demand for keg beer, as establishments aim to offer unique and high-quality options to their patrons. Keg Beer remains the largest and fastest-growing segment in the region .
By Beer Style:
The beer style segmentation includes Lager, Ale, Stout, Wheat Beer, Specialty Beer, Non-Alcoholic Beer, and Others. Lager dominates the market due to its widespread appeal and versatility, making it a staple in many bars and restaurants. The rise of craft
eweries has also led to increased interest in specialty beers, which cater to consumers looking for unique flavors and experiences. Non-alcoholic beer is gaining popularity as health-conscious consumers seek alternatives, contributing to the diversification of the market. The market continues to diversify with the introduction of new beer styles and increased demand for non-alcoholic options .
UAE Draught Beer Market Competitive Landscape
The UAE Draught Beer Market is characterized by a dynamic mix of regional and international players. Leading participants such as Anheuser-Busch InBev, Heineken N.V., Carlsberg Group, Molson Coors Beverage Company, Asahi Group Holdings, Ltd., Diageo plc, AB InBev Middle East,
ewDog, Al Ain
ewery, Emirates
ewery, Dubai
ewing Company, Abu Dhabi
ewing Company, Foster’s Group, Craft
ew Alliance, African & Eastern (UAE) LLC contribute to innovation, geographic expansion, and service delivery in this space.
Anheuser-Busch InBev
1366
Leuven, Belgium
Heineken N.V.
1864
Amsterdam, Netherlands
Carlsberg Group
1847
Copenhagen, Denmark
Molson Coors Beverage Company
1786
Chicago, USA
Asahi Group Holdings, Ltd.
1889
Tokyo, Japan
Company
Establishment Year
Headquarters
Group Size (Large, Medium, or Small as per industry convention)
Revenue (USD Million/AED Million)
Draught Beer Sales Volume (HL or Litre)
Market Share (%)
Growth Rate (CAGR %)
On-Trade vs Off-Trade Sales Ratio
UAE Draught Beer Market Industry Analysis
Growth Drivers
Increasing Tourism and Expat Population:
The UAE welcomed over 16 million international tourists in future, contributing significantly to the draught beer market. The expat population, which stands at approximately 8.5 million, creates a diverse consumer base with varying preferences for alcoholic beverages. This influx of tourists and expats drives demand for draught beer, particularly in hospitality venues, where beer consumption is a staple. The tourism sector is projected to grow by 5% annually, further boosting market potential.
Rising Demand for Craft Beers:
The craft beer segment in the UAE has seen a remarkable increase, with over 50 craft
eweries operating as of future. This growth is fueled by a consumer shift towards unique flavors and artisanal products. The craft beer market is expected to reach a value of AED 1 billion in future, reflecting a growing preference for locally produced, high-quality beers. This trend is supported by the increasing number of craft beer festivals, which attract both locals and tourists.
Expansion of Hospitality Sector:
The UAE's hospitality sector is projected to grow by 6% in future, driven by new hotel openings and enhanced dining experiences. With over 1,000 hotels and numerous restaurants, the demand for draught beer is expected to rise significantly. This expansion is complemented by the increasing number of licensed venues, which are crucial for the distribution of draught beer. The hospitality sector's growth directly correlates with increased beer consumption, particularly in social settings.
Market Challenges
Stringent Alcohol Regulations:
The UAE has strict regulations governing the sale and consumption of alcohol, which can hinder market growth. Licensing requirements for establishments selling alcohol are rigorous, with only 1,000 licenses issued in future. These regulations limit the number of venues where draught beer can be sold, impacting overall market accessibility. Additionally, the legal drinking age is set at 21, restricting potential consumer demographics and limiting market expansion.
High Import Duties on Alcohol:
The UAE imposes high import duties on alcoholic beverages, which can reach up to 50% of the product's value. This significantly increases the cost of imported draught beer, making it less competitive against locally produced options. In future, the total import value of beer was approximately AED 1.5 billion, with a substantial portion attributed to these duties. This financial burden can deter new entrants and limit the growth of existing
ands in the market.
UAE Draught Beer Market Future Outlook
The UAE draught beer market is poised for significant growth, driven by increasing tourism, a burgeoning craft beer scene, and the expansion of the hospitality sector. As consumer preferences shift towards premium and craft options,
eweries are likely to innovate with new flavors and sustainable practices. Additionally, the rise of e-commerce platforms for alcohol sales will enhance accessibility, allowing consumers to explore diverse offerings. Overall, the market is expected to adapt to changing consumer behaviors while navigating regulatory challenges effectively.
Market Opportunities
Growth of E-commerce for Alcohol Sales:
The e-commerce sector for alcohol sales in the UAE is projected to grow by 20% in future, providing a significant opportunity for draught beer
ands. Online platforms enable consumers to purchase a variety of beers conveniently, expanding market reach. This trend is particularly appealing to younger demographics who prefer online shopping, thus enhancing
and visibility and sales potential.
Introduction of Innovative Flavors and Varieties:
The demand for unique and innovative beer flavors is on the rise, with craft
eweries introducing over 100 new varieties in future. This trend presents an opportunity for established
ands to diversify their product lines and cater to evolving consumer tastes. By leveraging local ingredients and cultural influences,
eweries can create distinctive offerings that resonate with both locals and tourists, driving market growth.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
The UAE Draught Beer Market is valued at USD 1.18 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing popularity of craft beers, a rise in tourism, and the expansion of the hospitality sector. The market has seen a significant shift towards premium and specialty beers, reflecting changing consumer preferences and a growing interest in diverse beer styles. The Middle East & Africa draught beer market, which includes the UAE, generated revenue of USD 1,184.1 million, with keg beer as the largest and fastest-growing segment .
Dubai and Abu Dhabi are the dominant cities in the UAE Draught Beer Market due to their vi
ant nightlife, numerous bars, and restaurants catering to both locals and tourists. The cosmopolitan nature of these cities, combined with a robust tourism industry, has created a conducive environment for the growth of the draught beer segment, making them key players in the market. The expansion of on-premise consumption in these cities aligns with global trends favoring fresh, high-quality draught beer .
In 2023, the UAE government implemented the Federal Decree-Law No. 15 of 2023 on Alcoholic Beverage Regulation, issued by the Ministry of Health and Prevention. This regulation allows the sale of alcohol in more venues, including supermarkets and convenience stores, under specific licensing conditions. The law aims to boost tourism and enhance the hospitality sector, thereby increasing the availability and consumption of draught beer across the country. Licensed venues must comply with operational standards, including age restrictions, product labeling, and responsible service requirements .
UAE Draught Beer Market Segmentation
By Product Type:
The draught beer market is segmented into three main product types: Keg Beer, Canned Draught Beer, and Bottled Draught Beer. Keg Beer is currently the leading sub-segment, driven by its popularity in bars and restaurants where fresh beer is preferred. Canned and bottled options are also gaining traction, particularly among consumers seeking convenience and portability. The trend towards craft beers has further fueled the demand for keg beer, as establishments aim to offer unique and high-quality options to their patrons. Keg Beer remains the largest and fastest-growing segment in the region .
By Beer Style:
The beer style segmentation includes Lager, Ale, Stout, Wheat Beer, Specialty Beer, Non-Alcoholic Beer, and Others. Lager dominates the market due to its widespread appeal and versatility, making it a staple in many bars and restaurants. The rise of craft
eweries has also led to increased interest in specialty beers, which cater to consumers looking for unique flavors and experiences. Non-alcoholic beer is gaining popularity as health-conscious consumers seek alternatives, contributing to the diversification of the market. The market continues to diversify with the introduction of new beer styles and increased demand for non-alcoholic options .
UAE Draught Beer Market Competitive Landscape
The UAE Draught Beer Market is characterized by a dynamic mix of regional and international players. Leading participants such as Anheuser-Busch InBev, Heineken N.V., Carlsberg Group, Molson Coors Beverage Company, Asahi Group Holdings, Ltd., Diageo plc, AB InBev Middle East,
ewDog, Al Ain
ewery, Emirates
ewery, Dubai
ewing Company, Abu Dhabi
ewing Company, Foster’s Group, Craft
ew Alliance, African & Eastern (UAE) LLC contribute to innovation, geographic expansion, and service delivery in this space.
Anheuser-Busch InBev
1366
Leuven, Belgium
Heineken N.V.
1864
Amsterdam, Netherlands
Carlsberg Group
1847
Copenhagen, Denmark
Molson Coors Beverage Company
1786
Chicago, USA
Asahi Group Holdings, Ltd.
1889
Tokyo, Japan
Company
Establishment Year
Headquarters
Group Size (Large, Medium, or Small as per industry convention)
Revenue (USD Million/AED Million)
Draught Beer Sales Volume (HL or Litre)
Market Share (%)
Growth Rate (CAGR %)
On-Trade vs Off-Trade Sales Ratio
UAE Draught Beer Market Industry Analysis
Growth Drivers
Increasing Tourism and Expat Population:
The UAE welcomed over 16 million international tourists in future, contributing significantly to the draught beer market. The expat population, which stands at approximately 8.5 million, creates a diverse consumer base with varying preferences for alcoholic beverages. This influx of tourists and expats drives demand for draught beer, particularly in hospitality venues, where beer consumption is a staple. The tourism sector is projected to grow by 5% annually, further boosting market potential.
Rising Demand for Craft Beers:
The craft beer segment in the UAE has seen a remarkable increase, with over 50 craft
eweries operating as of future. This growth is fueled by a consumer shift towards unique flavors and artisanal products. The craft beer market is expected to reach a value of AED 1 billion in future, reflecting a growing preference for locally produced, high-quality beers. This trend is supported by the increasing number of craft beer festivals, which attract both locals and tourists.
Expansion of Hospitality Sector:
The UAE's hospitality sector is projected to grow by 6% in future, driven by new hotel openings and enhanced dining experiences. With over 1,000 hotels and numerous restaurants, the demand for draught beer is expected to rise significantly. This expansion is complemented by the increasing number of licensed venues, which are crucial for the distribution of draught beer. The hospitality sector's growth directly correlates with increased beer consumption, particularly in social settings.
Market Challenges
Stringent Alcohol Regulations:
The UAE has strict regulations governing the sale and consumption of alcohol, which can hinder market growth. Licensing requirements for establishments selling alcohol are rigorous, with only 1,000 licenses issued in future. These regulations limit the number of venues where draught beer can be sold, impacting overall market accessibility. Additionally, the legal drinking age is set at 21, restricting potential consumer demographics and limiting market expansion.
High Import Duties on Alcohol:
The UAE imposes high import duties on alcoholic beverages, which can reach up to 50% of the product's value. This significantly increases the cost of imported draught beer, making it less competitive against locally produced options. In future, the total import value of beer was approximately AED 1.5 billion, with a substantial portion attributed to these duties. This financial burden can deter new entrants and limit the growth of existing
ands in the market.
UAE Draught Beer Market Future Outlook
The UAE draught beer market is poised for significant growth, driven by increasing tourism, a burgeoning craft beer scene, and the expansion of the hospitality sector. As consumer preferences shift towards premium and craft options,
eweries are likely to innovate with new flavors and sustainable practices. Additionally, the rise of e-commerce platforms for alcohol sales will enhance accessibility, allowing consumers to explore diverse offerings. Overall, the market is expected to adapt to changing consumer behaviors while navigating regulatory challenges effectively.
Market Opportunities
Growth of E-commerce for Alcohol Sales:
The e-commerce sector for alcohol sales in the UAE is projected to grow by 20% in future, providing a significant opportunity for draught beer
ands. Online platforms enable consumers to purchase a variety of beers conveniently, expanding market reach. This trend is particularly appealing to younger demographics who prefer online shopping, thus enhancing
and visibility and sales potential.
Introduction of Innovative Flavors and Varieties:
The demand for unique and innovative beer flavors is on the rise, with craft
eweries introducing over 100 new varieties in future. This trend presents an opportunity for established
ands to diversify their product lines and cater to evolving consumer tastes. By leveraging local ingredients and cultural influences,
eweries can create distinctive offerings that resonate with both locals and tourists, driving market growth.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
Table of Contents
88 Pages
- 1. UAE Draught Beer Market Overview
- 1.1. Definition and Scope
- 1.2. Market Taxonomy
- 1.3. Market Growth Rate
- 1.4. Market Segmentation Overview
- 2. UAE Draught Beer Market Size (in USD Bn), 2019–2024
- 2.1. Historical Market Size
- 2.2. Year-on-Year Growth Analysis
- 2.3. Key Market Developments and Milestones
- 3. UAE Draught Beer Market Analysis
- 3.1. Growth Drivers
- 3.1.1 Increasing Tourism and Expat Population
- 3.1.2 Rising Demand for Craft Beers
- 3.1.3 Expansion of Hospitality Sector
- 3.1.4 Changing Consumer Preferences Towards Premium Products
- 3.2. Restraints
- 3.2.1 Stringent Alcohol Regulations
- 3.2.2 High Import Duties on Alcohol
- 3.2.3 Cultural Sensitivities Surrounding Alcohol Consumption
- 3.2.4 Competition from Non-Alcoholic Beverages
- 3.3. Opportunities
- 3.3.1 Growth of E-commerce for Alcohol Sales
- 3.3.2 Introduction of Innovative Flavors and Varieties
- 3.3.3 Collaborations with Local Breweries
- 3.3.4 Expansion into Untapped Markets within the UAE
- 3.4. Trends
- 3.4.1 Increasing Popularity of Draft Beer in Social Settings
- 3.4.2 Rise of Sustainable Brewing Practices
- 3.4.3 Growth of Beer Festivals and Events
- 3.4.4 Shift Towards Health-Conscious Beer Options
- 3.5. Government Regulation
- 3.5.1 Licensing Requirements for Alcohol Sales
- 3.5.2 Restrictions on Advertising Alcohol
- 3.5.3 Age Restrictions for Purchase and Consumption
- 3.5.4 Regulations on Alcohol Distribution Channels
- 3.6. SWOT Analysis
- 3.7. Stakeholder Ecosystem
- 3.8. Competition Ecosystem
- 4. UAE Draught Beer Market Segmentation, 2024
- 4.1. By Product Type (in Value %)
- 4.1.1 Keg Beer
- 4.1.2 Canned Draught Beer
- 4.1.3 Bottled Draught Beer
- 4.1.4 Others
- 4.2. By Beer Style (in Value %)
- 4.2.1 Lager
- 4.2.2 Ale
- 4.2.3 Stout
- 4.2.4 Wheat Beer
- 4.2.5 Specialty Beer
- 4.2.6 Non-Alcoholic Beer
- 4.3. By End-User (in Value %)
- 4.3.1 Commercial Establishments (Bars, Pubs, Restaurants, Hotels)
- 4.3.2 Hospitality Venues
- 4.3.3 Residential Consumers
- 4.3.4 Events and Festivals
- 4.3.5 Retail Outlets
- 4.4. By Distribution Channel (in Value %)
- 4.4.1 On-Trade
- 4.4.2 Off-Trade
- 4.4.3 E-commerce
- 4.4.4 Direct Sales
- 4.5. By Price Range (in Value %)
- 4.5.1 Super Premium
- 4.5.2 Premium
- 4.5.3 Regular
- 4.5.4 Economy
- 4.6. By Region (in Value %)
- 4.6.1 Northern Emirates
- 4.6.2 Dubai
- 4.6.3 Abu Dhabi
- 4.6.4 Sharjah
- 4.6.5 Ajman
- 4.6.6 Ras Al Khaimah
- 4.6.7 Fujairah
- 5. UAE Draught Beer Market Cross Comparison
- 5.1. Detailed Profiles of Major Companies
- 5.1.1 Anheuser-Busch InBev
- 5.1.2 Heineken N.V.
- 5.1.3 Carlsberg Group
- 5.1.4 Molson Coors Beverage Company
- 5.1.5 Al Ain Brewery
- 5.2. Cross Comparison Parameters
- 5.2.1 Revenue (USD Million/AED Million)
- 5.2.2 Draught Beer Sales Volume (HL or Litre)
- 5.2.3 Market Share (%)
- 5.2.4 Growth Rate (CAGR %)
- 5.2.5 Average Selling Price (AED/Litre)
- 6. UAE Draught Beer Market Regulatory Framework
- 6.1. Compliance Requirements and Audits
- 6.2. Certification Processes
- 7. UAE Draught Beer Market Future Size (in USD Bn), 2025–2030
- 7.1. Future Market Size Projections
- 7.2. Key Factors Driving Future Market Growth
- 8. UAE Draught Beer Market Future Segmentation, 2030
- 8.1. By Product Type (in Value %)
- 8.2. By Beer Style (in Value %)
- 8.3. By End-User (in Value %)
- 8.4. By Distribution Channel (in Value %)
- 8.5. By Price Range (in Value %)
- 8.6. By Region (in Value %)
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