UAE Alcoholic Beverages Market Overview, 2030

The alcoholic beverages market in the United Arab Emirates (UAE) is distinctive due to the country's cultural, religious, and legal factors. Consumption of alcohol is permitted in specific areas but is tightly controlled. The market is mainly influenced by tourists and expatriates, as local consumption is restricted because of Islamic laws that ban alcohol in public for Muslim residents. Historically, the alcohol market in the UAE was limited, with drinks primarily available in hotels, bars, and restaurants that service international guests. The establishment of liquor licenses in the 1990s enabled expatriates to buy alcohol for personal use, although this was confined to designated areas and outlets such as specialized liquor stores and licensed shops in certain emirates. Dubai and Abu Dhabi serve as the main markets for alcohol, where foreign tourists, expats, and an increasing number of international residents enjoy alcoholic beverages in licensed establishments. The UAE's alcohol market saw growth in the 2000s due to a surge in international tourism and foreign labor, particularly in Dubai, which evolved into a global center for tourism and business. Popularity for international brands of beer, wine, and spirits grew, and the market started to become more diverse. Nonetheless, the overall market size remains small compared to other nations because of socio-cultural and religious limitations on alcohol drinking. In recent times, there has been a trend towards more premium and craft alcoholic beverages, particularly among younger, sophisticated expatriates and tourists. International wine and spirits are favored, especially in upscale restaurants and hotels. The craft beer trend has also become more prominent, mirroring worldwide patterns. Despite obstacles, the market continues to be a vital component of the UAE’s hospitality industry, presenting opportunities for expansion in premium and varied alcoholic products, particularly fueled by tourism.

According to the research report, ""United Arab of Emirates alcoholic beverages Market Overview, 2030,"" published by Bonafide Research, the United Arab of Emirates alcoholic beverages market is anticipated to grow at more than 5.24% CAGR from 2025 to 2030. The market for alcoholic beverages in the United Arab Emirates (UAE) is distinctive, influenced by cultural, legal, and economic elements. Key growth drivers, product background, promotional tactics, and emerging prospects all play a role in the market's advancement. The expansion of the UAE's alcoholic beverages market is mainly fueled by the country's significant expatriate population and flourishing tourism sector. As the UAE serves as a central business and tourism destination, particularly in cities like Dubai and Abu Dhabi, there is a steady demand for alcoholic drinks among foreign guests and residents. Furthermore, the increase of luxury tourism, high-end hotels, and fine dining spaces has heightened the need for premium wines, spirits, and craft beers. More and more, younger, cosmopolitan consumers are pursuing a broader and more sophisticated drinking experience, which further escalates the demand for craft beers, international wines, and premium spirits. Alcohol use in the UAE has historically been limited due to Islamic regulations. Nevertheless, with the country’s rising global stature and growing expatriate community, alcoholic beverages have become more accessible in licensed locations such as hotels, nightclubs, and specialty shops. Beer, wine, and spirits have traditionally been the primary products, with international labels leading the market. Over time, the market has progressed to accommodate a wider range of preferences, introducing craft beers and premium liquor brands to satisfy the tastes of expatriates and tourists. Alcohol advertising in the UAE is strictly controlled. Promotions are largely restricted to licensed locations, where companies frequently sponsor events, festivals, and concerts aimed at the expatriate community and visitors.

The alcoholic beverages market in the United Arab Emirates (UAE) is varied, serving mainly expatriates and visitors. The major segments consist of beer, wine, spirits (liquor), sake, and other alcoholic drinks, each appealing to distinct preferences and consumption habits. Beer ranks as the most frequently consumed alcoholic drink in the UAE, mostly preferred by expatriates and tourists. International labels such as Heineken, Budweiser, and Carlsberg lead the industry, while local brands like Al Arouba and Foster’s also enjoy popularity. Beer is typically enjoyed in bars, hotels, and restaurants, with an increasing trend towards premium and craft beers in urban settings like Dubai. Craft beer, especially, has found favor among younger, modern consumers looking for diversity and quality over mass-produced choices. Wine consumption is on the rise in the UAE, influenced by a significant expatriate community from regions where wine is a key beverage, such as France, Italy, and Spain. The wine sector accommodates both luxury wine lovers and individuals in search of affordable choices. High-end wine brands are often available in luxury hotels, dining establishments, and exclusive clubs, while more economical wines can be found at specialty liquor shops. Wine is predominantly consumed in fine dining and upscale events, with a growing inclination towards organic and sustainable wines. Spirits (Liquor), especially vodka, whiskey, and rum, have a strong following in the UAE, particularly among expatriates and tourists. Global brands like Johnnie Walker, Grey Goose, and Patron are prevalent in the market, with consumption concentrated in nightclubs, bars, and specialized venues. The increasing appeal of premium spirits indicates a growing desire for high-quality liquor among consumers. Sake, while not customarily consumed in the UAE, has seen a rise in popularity due to the heightened demand for Asian cuisine and the impact of Japanese culture, especially in upscale restaurants that serve sushi and other Japanese meals.

The types of packaging in the United Arab Emirates (UAE) alcoholic beverages market significantly influence consumer choices, convenience, and the perception of the products. The main packaging types comprise glass bottles, tins (cans), plastic bottles, and other formats, each meeting distinct market demands. Glass Bottles are the leading packaging type in the UAE, especially for premium and high-quality alcoholic beverages. This type of packaging is favored for spirits, wines, and premium beers. Glass is regarded as the best material for maintaining the flavor and quality of alcoholic drinks, and it also signifies the luxury and quality of top-tier brands. Prominent international brands of vodka, whiskey, rum, and wine typically utilize glass bottles to elevate the product’s image. For instance, high-end vodka brands like Grey Goose and Belvedere are regularly found in sophisticated glass bottles. Glass bottles are also preferred for showcasing fine wines and spirits in upscale bars, hotels, and restaurants, where emphasis is placed on quality and status. Tins (Cans) are extensively utilized for beer and ready-to-drink (RTD) alcoholic beverages. Beer brands such as Heineken, Budweiser, and Carlsberg are generally packaged in cans, as this format is more practical for outdoor enjoyment, social events, and ease of transport. Cans are also popular for RTDs like cocktails and low-alcohol beverages, which have gained popularity in the UAE, especially among younger, health-focused consumers. Furthermore, cans are perceived as more environmentally friendly because of their recyclability, attracting eco-conscious consumers. Plastic Bottles are less prevalent but are mainly utilized for economy brands of spirits and larger quantities of wine or beer. Plastic packaging is commonly linked to more budget-friendly products and larger sizes, such as family packs or bulk purchases. Nevertheless, plastic bottles are not usually associated with premium offerings due to beliefs of inferior quality. Other packaging types comprise tetra packs for certain wines and bag-in-box for bulk wines.

The distribution networks for alcoholic beverages in the United Arab Emirates (UAE) are varied and significantly shaped by the country’s distinctive regulatory framework. The main distribution networks consist of supermarkets and hypermarkets, on-trade establishments, specialist retailers, and other emerging channels, each addressing different consumer demographics. Supermarkets and Hypermarkets play a crucial role in the UAE's alcoholic beverages sector, although their function is more limited compared to other areas due to the regulations governing alcohol sales. In the UAE, alcoholic beverages can only be sold in licensed outlets. Supermarkets and hypermarkets in locations like Dubai and Abu Dhabi offer a broad selection of alcoholic drinks, primarily aimed at the expatriate and tourist demographics. These establishments provide beer, wine, spirits, and ready-to-drink (RTD) cocktails, frequently presenting competitive prices for regular customers. Nevertheless, they are restricted to regions with expatriate communities, as alcohol sales are not allowed in more conservative parts of the country. Increasingly, supermarkets are also providing online alcohol sales, facilitating home delivery of drinks to licensed addresses. On-Trade pertains to the consumption of alcohol at bars, restaurants, hotels, and nightclubs, which form a vital segment of the alcoholic beverages industry in the UAE. The on-trade sector is particularly significant as it serves both local residents and tourists within a regulated framework. Upscale hotels and fine dining establishments in the UAE often stock high-quality wines, spirits, and cocktails, catering to tourists, business visitors, and wealthy expatriates. On-trade consumption is notably popular in cities such as Dubai, where the lively nightlife and culinary experiences drive the demand for premium alcoholic brands. Specialist Retailers, such as liquor stores located in licensed regions, serve consumers seeking a more selective assortment of alcoholic products. These stores provide a diverse array of items, including premium spirits, international wines, and specialty beers. Numerous specialist retailers offer delivery services for licensed customers, and they are particularly essential for those in search of luxury or niche alcoholic offerings.


Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Alcoholic Beverages Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Beer
• Wine
• Spirits (Liquor)
• Sake
• Others

By Packaging Type
• Glass Bottles
• Tins
• Plastic Bottles
• Others

By Distribution Channel
• Supermarkets and Hypermarkets
• On-Trade
• Specialist Retailers
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.