Global Arak Market to Reach US$17.3 Billion by 2030
The global market for Arak estimated at US$15.6 Billion in the year 2024, is expected to reach US$17.3 Billion by 2030, growing at a CAGR of 1.8% over the analysis period 2024-2030. Grapes Raw Material, one of the segments analyzed in the report, is expected to record a 2.1% CAGR and reach US$9.2 Billion by the end of the analysis period. Growth in the Aniseed Raw Material segment is estimated at 1.5% CAGR over the analysis period.
The U.S. Market is Estimated at US$4.2 Billion While China is Forecast to Grow at 3.9% CAGR
The Arak market in the U.S. is estimated at US$4.2 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$3.4 Billion by the year 2030 trailing a CAGR of 3.9% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 0.3% and 1.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 0.7% CAGR.
Global Arak Market - Key Trends and Drivers Summarized
Arak, a traditional Middle Eastern spirit known for its anise flavoring, has a rich history and a unique production process that distinguishes it from similar spirits like Turkish raki or Greek ouzo. Traditionally made from grape-based spirit or sometimes from figs, plums, or raisins, Arak is enjoyed as a clear or milky-white beverage when mixed with water, and is often accompanied by mezze, enhancing the social and cultural experience of dining. The process involves fermenting grapes, which are then distilled in traditional alembic stills, a technique dating back to the 8th century by Arab chemist Jabir ibn Hayyan. The final product, after multiple distillations—which can vary the flavor intensity and alcohol content—is often aged in clay jugs before being diluted with water at the time of consumption, creating a drink that is both potent and refreshing.
Arak`s consumption is deeply rooted in the dining and social customs of the Middle East, where it is seen as more than just a drink, but a part of a larger cultural tapestry. The spirit is traditionally served with water and ice, allowing drinkers to adjust its strength to their taste, which usually leads to a long, leisurely drinking experience typical of Middle Eastern soirees. The spirit has evolved in its consumption, from being a simple farmer’s drink to becoming a sophisticated spirit enjoyed in various social settings, signifying a shift towards more gourmet and culturally rich beverages. Different regions have their own versions of Arak, with variations in distillation techniques and the amount of anise used, which can influence the taste from a grainy, whiskey-like flavor to a softer, more subtle taste. This adaptability in production and consumption has helped Arak maintain its popularity across generations and geographical boundaries.
The growth in the Arak market is driven by several factors, particularly cultural globalization which introduces Arak to new demographics beyond the Middle East. The growing interest in artisanal and craft spirits among consumers worldwide is also a significant driver, as is the impact of tourism and the influence of diaspora communities who introduce Arak to new markets. Social media and digital marketing play crucial roles in educating potential consumers about Arak’s heritage and unique aspects. Additionally, the evolving palates of global consumers, who are increasingly seeking exotic and diverse flavor profiles, boost Arak`s appeal. The incorporation of Arak into the international cocktail culture by innovative bartenders and regulatory changes that favor the production, distribution, and sale of traditional spirits further contribute to its growing popularity in the global spirits market.
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