Increasing Demand of Alcoholic Products and Continuous Merger and Acquisition on Large Scale Driving the Middle East and Africa Alcoholic Beverages Markets in the Forecast Period 2018 TO 2025

Middle East and Africa Alcoholic Beverages Market is expected to reach USD 55.08 billion by 2025 growing at a significant CAGR in the forecast period 2018 to 2025. The new market report contains data for historic years 2016, the base year of calculation is 2017 and the forecast period is 2018 to 2025.Access Full Report: https://databridgemarketresearch.com/reports/middle-east-africa-alcoholic-beverages-market/

Segmentation: Middle East & Africa Alcoholic Beverages Market

Middle East & Africa Alcoholic Beverages Market By Type (Beer {Lager, Ale, Hybrid}, Distilled Spirits {Vodka, Gin, Whiskey, Rum, Liqueur, Tequila}, Wine, Brandy, Champagne, Ciders), Packaging (Bottles {Glass, Plastics}, Cans, Others), Product Type (Flavored, Unflavored), Distribution Channel (Speciality Stores, Off Trade, On Trade, Online Retailers), Geography (Asia Pacific, Middle East and Africa)–Industry Trends and Forecast to 2025

Drivers: Middle East & Africa Alcoholic Beverages Market

Increased consumption of alcohol in young-adult demographic, increasing demand of alcoholic products and continuous merger and acquisition on large scale driving the market.  

INCREASED IN DISPOSAL INCOME ALONG WITH RAPID URBANISATION

In urban areas, people believe that they can get relaxation by consuming alcohol and this factor has increased consumption of alcoholic beverages market across the Middle East and Africa. The rapid urbanization and strong economic growth and rising disposable income from low bases are also key factors for growth of alcohol. Disposable personal income is regularly observed as one of the many key economic pointers used to measure the general state of the economy. The alcohol consumption is different apart from the daily life product usage (products need for the survival), so as the disposable income increases there are the greater chances of spending much more on these products.

Consumption of alcohol has increased in South Africa. As per WHO, South Africa country is ranked as one of the top 20 biggest drinking nations globally. It is estimated that in 2015, people in South Africa consumes around 11.5 litre per capita per year of pure alcohol consumption. The most popular beer brands in South Africa are Castle and Black Label, but the country’s extensive wine vineyards in Stellenbosch and the Western Cape produce some of the world’s most famous wine.

Different countries with high rate of increase in the disposable income, the chances of people spending on the alcoholic and the other products that is not necessary for the life style. This can be seen as the great opportunity for the companies investing in the alcoholic beverage market and this is great prospect for the growth of the market.

INCREASING MERGER AND ACQUISITION ON LARGE SCALE

In the past few years mergers and acquisitions has increased significantly between countries largest wholesalers and retailers. Many of the alcohol transnationals have merged and some of them are now involved in the supply of bulk demand globally. As the number of local players is increasing it is getting difficult for the foreign players to expand their business. Also, the tax applied while import and export of alcohol is also very high in some of the countries, so the producers are alcoholic beverages are trying to merge or acquire the local players so as to increase their foot hold in other countries. On the other hand, beverage companies are facing slow sales in matured market such as Europe, Japan and the US the number of mergers has increased in the developing nations such as Asia-Pacific.

Various product launches are taking place with respect of different alcoholic beverages due to which companies are making different investment. Rising high preference for premium brands in alcoholic beverages has provided opportunities to invest hugely in alcoholic beverages in the form of product launch, innovations as well as merger and acquisition. For instance, big companies such as Diageo Plc. and Kirin Holdings Co. Ltd (Japan) are adopting multi-pronged strategies which include mergers and acquisitions and partnerships with local firms to have strong footholds in markets like India and China which are dominated mostly by domestic players.

  • In July, 2016, Brown-Forman (U.S.) engaged in providing spirits and wine across the worldwide establishes its own distribution organization in Spain. This investment will expand company reach to countries like Australia, Brazil, Canada, China, the Czech Republic, France, Germany, Hong Kong, Mexico, Poland, South Korea, Thailand, Turkey, and the U.K. as a direct distributor.
  • In Feb 2016, Diageo’s baijiu brand Shui Jing Fang helped the company's growth in China as it is expected to cut market spending on deluxe Scotch in the country.

Major Players: Middle East & Africa Alcoholic Beverages Market

SUNTORY HOLDINGS LIMITED., BROWN-FORMAN, Anheuser-Busch InBev, UNITED BREWERIES LTD., Molson Coors Brewing Company, Accolade Wines, Heineken Holding N.V., Asahi Group Holdings, Ltd. Pernod Ricard, Carlsberg Breweries A/S, Diageo, Kirin Holdings Company, Limited among others.