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Middle East & Africa Wine Market Size (2024 - 2029)

The Middle East and Africa wine market is experiencing growth, driven by a rising demand for unique and refreshing wine beverages, particularly premium white wines. The market size is influenced by changing consumer preferences, with alcohol consumption increasingly seen as a social status symbol, boosting the popularity of low-alcohol and non-alcoholic wines among millennials and young adults. Despite challenges posed by the pandemic, which disrupted distribution channels and impacted sales, the market is poised for expansion as manufacturers respond to consumer trends with innovative product offerings.

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Market Size of Middle East & Africa Wine Industry

MarketSnapshot1
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 3.32 %
Market Concentration Low

Major Players

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*Disclaimer: Major Players sorted in no particular order

Middle East Africa Wine Market Analysis

The Middle East & Africa Wine Market is projected to register a CAGR of 3.32% during the forecast period, 2022-2027.

The pandemic has disrupted the global wine distribution channel due to the restrictions on hotels and restaurants worldwide. While the wine industry received permission to complete the wine grape harvest in 2020, South Africa's lockdown on local and international sales had far-reaching repercussions for the financial viability of businesses in the supply chain. According to a report by Wine International Association, in 2020, the South African wine industry lost around R450 million a week in local retail and international sales. Many farms also lost out on agritourism opportunities. With the assistance of the Bureau for Food and Agricultural Policy (BFAP), the industry estimated that an approximately 40% decrease in export value, around R9 billion, was observed during the prolonged lockdown.

Over the medium term, the wine market has witnessed significant growth, owing to the increasing demand for wine beverages with unique and refreshing flavors. Moreover, the increasing inclination toward premium white wine beverages is estimated to boost the wine market in the coming years.

The consumption of alcohol is becoming a sign of social status, supporting the growth of low-alcoholic or non-alcoholic wine in the market. It is gaining massive popularity among millennials and youngsters, owing to its claim of refreshment and low ABV offerings. It is associated chiefly with several occasions and served as a table wine with regular food in developing countries. This increasing demand further encourages manufacturers to launch and introduce innovative products in the market, indicating future market growth.

Middle East Africa Wine Industry Segmentation

Wine is an alcoholic drink typically made from fermented grape juice. Wines are extensively used for consumption and cooking purposes since it intensifies the flavor and aroma of finished dishes. The wine market is segmented by product type, distribution channel, and country. By product type, the market is segmented into still wine, sparkling wine, dessert wine, and fortified wine. By distribution channel, the market is segmented into on-trade and off-trade. Off-trade is further segmented into supermarkets/hypermarkets, specialty stores, and other distribution channels. Based on country, the market is segmented into South Africa, the United Arab Emirates, Saudi Arabia, and the Rest of the Middle East & Africa. For each segment, the market sizing and forecasts have been done based on value (in USD million).

By Type
Still Wine
Sparkling Wine
Dessert Wine
Fortified Wine
By Distribution Channel
On-Trade
Off-Trade
Supermarkets/Hypermarkets
Specialty Stores
Other Distribution Channels
By Country
South Africa
United Arab Emirates
Saudi Arabia
Rest of the Middle East & Africa
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Middle East & Africa Wine Market Size Summary

The Middle East and Africa wine market is experiencing a steady growth trajectory, driven by an increasing demand for unique and refreshing wine flavors, particularly premium white wines. The market's expansion is further supported by the rising popularity of low-alcoholic and non-alcoholic wines among millennials and younger consumers, who view these beverages as a social status symbol. Despite challenges posed by the pandemic, which disrupted global wine distribution and significantly impacted South Africa's wine industry, the market has shown resilience. The trend towards westernization in the region is creating new opportunities for wine market players, as wine is increasingly perceived as a premium product. The high-income demographic in these regions is also contributing to market growth, as consumers seek quality wines without price constraints.

The retail landscape for wine in the Middle East and Africa is dominated by supermarkets and hypermarkets, which offer a wide variety of wines across different price ranges and brands. These retail channels have seen increased foot traffic, especially during the pandemic, as consumers shifted to grocery shopping for wine. Major retailers like Shoprite, Carrefour, and LuLu Group are leading the market, providing dedicated shelf space for wine products. The competitive market environment is characterized by the presence of global players such as Accolade Wines, Pernod Ricard, and Treasury Wine Estates, who are actively engaging in mergers, acquisitions, and product innovations to expand their market presence. The introduction of home delivery services for wine, as seen in Dubai and Abu Dhabi, further underscores the evolving distribution strategies aimed at catering to the growing consumer demand in the region.

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Middle East & Africa Wine Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porter's Five Force Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Still Wine

      2. 2.1.2 Sparkling Wine

      3. 2.1.3 Dessert Wine

      4. 2.1.4 Fortified Wine

    2. 2.2 By Distribution Channel

      1. 2.2.1 On-Trade

      2. 2.2.2 Off-Trade

        1. 2.2.2.1 Supermarkets/Hypermarkets

        2. 2.2.2.2 Specialty Stores

        3. 2.2.2.3 Other Distribution Channels

    3. 2.3 By Country

      1. 2.3.1 South Africa

      2. 2.3.2 United Arab Emirates

      3. 2.3.3 Saudi Arabia

      4. 2.3.4 Rest of the Middle East & Africa

Middle East & Africa Wine Market Size FAQs

The Middle East & Africa Wine Market is projected to register a CAGR of 3.32% during the forecast period (2024-2029)

Accolade Wines, Treasury Wine Estates, Birthmark of Africa Wines, Suntory Holdings Limited and Pernod Ricard are the major companies operating in the Middle East & Africa Wine Market.

MEA Wine Market Report Snapshots

Middle East Africa Wine Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)