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The arak market share is expected to increase to USD 2.63 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 3.32%.
This arak market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers arak market segmentation by raw material (grapes, aniseed, and others) and geography (Middle East and Africa, North America, Europe, APAC, and South America). The arak market report also offers information on several market vendors, including Chateau Ksara, Domaine des Tourelles, El Massaya, Haddad Distilleries, Kawar Arak, Lebanese Arak Corp., Lebanese Fine Wines Ltd., LibanonWeine, and Zumot Distilleries among others.
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The increasing number of distilleries and growth in exports of arak is notably driving the arak market growth, although factors such as fluctuations in raw material price may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the arak industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Arak Market Driver
The increasing number of distilleries and growth in exports of arak is one of the key drivers supporting the arak market growth. Distilleries are increasing their footprint in North America due to the increase in demand for arak. For instance, in January 2020, Rechmaya Distillery, a Lebanon-based spirit distillery, announced to increase in their export of spirits, including arak, to the US. Moreover, a significant rise in the per capita income in developed and developing economies is increasing the demand for premium spirits among consumers. Thus, the growing demand for arak has led to an increase in the number of craft distillers globally, which will drive market growth during the forecast period.
Key Arak Market Trend
Growing online sales is one of the key arak market trends contributing to the market growth. The Internet has become an important tool for sales and marketing activities in the alcoholic beverages industry. Moreover, online retailing has helped small businesses such as producers of arak to expose their brands to a larger consumer base. In addition, the use of e-commerce websites as a tool to engage consumers has increased. Vendors often organize various contests on their social media platforms and reward winners with gifts. Such initiatives help the vendors in enhancing consumer engagement. Meanwhile, during the outbreak of COVID-19, people and governments were focused on maintaining social distancing to contain the spread of the disease, which further boosted the sale of alcoholic beverages through online platforms. These factors are expected to have a positive impact on the market growth during the forecast period.
Key Arak Market Challenge
Fluctuations in raw material price is one of the factors impeding the arak market growth. Primarily, the raw materials used for the production of arak are grapes, aniseeds, rice, or sugarcanes. However, they are prone to damage due to natural disasters and adverse weather conditions, such as heavy rainfall, drought, flood, earthquake, frost, and pestilence. This affects the yield and quality of raw materials, which are used as ingredients in the production of arak. Besides, the total lockdown in various countries globally during the pandemic hindered the cultivation of raw materials such as grapes, aniseeds, and rice, which, in turn, led to disruption of the supply chains of raw materials required to produce arak. Such factors may impede the market growth during the forecast period.
This arak market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global arak market as a part of the global distillers and vintners market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the arak market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the arak market encompasses successful business strategies deployed by the key vendors. The arak market is concentrated and the vendors are deploying growth strategies such as type, price, and quality of products to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The arak market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the arak market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
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47% of the market's growth will originate from Middle East and Africa during the forecast period. Lebanon and Jordan are the key markets for the arak market in Middle East and Africa. Market growth in this region will be faster than the growth of the market in North America and South America.
The increase in the number of local distillers and the increasing consumption of anise drinks will facilitate the arak market growth in Middle East and Africa over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The growth of the arak market was negatively impacted owing to the outbreak of COVID-19 in MEA. However, the initiation of vaccination drives, along with the reopening of distilleries in the region, led to the growth of the market in focus in MEA. Moreover, the growing focus on the tourism and wellness sector in Saudi Arabia and the UAE will create further demand for alcoholic drinks from tourists, thus driving the growth of the regional market during the forecast period.
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The arak market share growth by the grapes segment will be significant during the forecast period. Grapes accounted for the largest revenue share in the global arak market in 2021. The major raw material required to produce arak is grapevines which are produced by crushing the grapes. Then, the grapevine production process is followed by several processes, including primary fermentation, pressing, secondary fermentation, first distillation, and second distillation. Moreover, the high consumption of the arak spirits in countries such as Lebanon, Syria, Israel, and Iraq will drive the segment growth in the forecast period.
This report provides an accurate prediction of the contribution of all the segments to the growth of the arak market size and actionable market insights on post COVID-19 impact on each segment.
Arak Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.32% |
Market growth 2022-2026 |
$ 2.63 billion |
Market structure |
Concentrated |
YoY growth (%) |
3.12 |
Regional analysis |
Middle East and Africa, North America, Europe, APAC, and South America |
Performing market contribution |
Middle East and Africa at 47% |
Key consumer countries |
US, Canada, Lebanon, Jordan, and Japan |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Chateau Ksara, Domaine des Tourelles, El Massaya, Haddad Distilleries, Kawar Arak, Lebanese Arak Corp., Lebanese Fine Wines Ltd., LibanonWeine, and Zumot Distilleries |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Raw Material
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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