Arak Market

Market Overview:

The global arak market size reached US$ 15.05 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 18.49 Billion by 2028, exhibiting a growth rate (CAGR) of 3.47% during 2023-2028. The rising demand for ethnic cuisine and exotic beverages, the expanding globalization of the beverage industry, the surging popularity of craft and artisanal spirits, and the shift towards premium and mindful consumption are some of the major factors propelling the market.

Arak is an alcoholic beverage traditional to Middle Eastern and Mediterranean countries. It is a distilled spirit characterized by its distinct flavor and cultural significance. Arak is produced by fermenting and distilling grapes, typically using aniseed as a flavoring agent. The production process results in a transparent, potent spirit that is often diluted with water before consumption. Arak is commonly enjoyed as an aperitif or as an accompaniment to meals, offering a unique and refreshing taste that captivates connoisseurs and enthusiasts.         

The global arak market is experiencing substantial growth, fueled by the increasing popularity of ethnic cuisines and the growing interest in exotic beverages. Moreover, consumers around the world are developing a taste for diverse flavors and exploring traditional alcoholic beverages, such as arak, which is creating a positive outlook for market expansion. Besides this, the rapid establishment of restaurants, bars, and hotels that serve arak is bolstering the market growth. In addition to this, the globalization of the beverage industry and the expansion of international trade have facilitated the wider distribution of arak, which, in turn, is favoring the market growth. In line with this, the advent of e-commerce platforms, making it easier for producers to reach a broader customer base beyond geographical boundaries, is presenting remunerative growth opportunities for the market. Furthermore, the growing popularity of craft and artisanal spirits has significantly impacted the market's growth, with escalating customer preferences for high-quality and authentic products.

Arak Market Trends/Drivers:

Cultural significance and the growing popularity of Middle Eastern cuisines

Arak holds deep cultural significance in Middle Eastern and Mediterranean countries, where it has been a cherished beverage for centuries. This cultural heritage and tradition associated with arak and the surging popularity of Middle Eastern cuisine is expected to increase the demand for arak in the coming years. In addition to this, as consumers seek authentic cultural experiences through food and beverages, arak stands out as a symbol of tradition, providing a taste of the rich culinary heritage of these regions. Moreover, its consumption is associated with celebratory occasions and social gatherings, which, in turn, is enhancing its appeal among consumers seeking meaningful connections to different cultures. Furthermore, the surging number of individuals willing to explore new tastes and traditions is creating a favorable outlook for market expansion.

Rising demand for unique flavored and low-alcohol beverages

The rising demand for low-alcohol beverages represents one of the prime factors impelling the market growth. The escalating health consciousness among consumers is prompting them to seek out low-alcohol alternatives to traditional alcoholic beverages, which is presenting lucrative opportunities for the market. Moreover, arak's distinct flavor profile sets it apart from other alcoholic beverages in the market, thus positively impacting the market growth. The combination of distilled grapes and aniseed creates a refreshing and aromatic taste that captivates consumers seeking new and exciting sensory experiences, acting as another significant growth-inducing factor. Furthermore, arak's unique flavor profile lends itself well to mixology, allowing bartenders and cocktail enthusiasts to create innovative and enticing concoctions, which is bolstering its demand.

Emerging trends of craft and artisanal spirits

The rising popularity of craft and artisanal spirits has greatly influenced the growth of the global arak market. The rising demand for high-quality, handcrafted spirits that embody craftsmanship and authenticity among consumers are aiding in market expansion. Arak’s production involves traditional methods that consist of meticulous fermenting and distilling of grapes, combined with the infusion of aniseed, resulting in a crafted spirit that offers a premium drinking experience. This artisanal appeal attracts consumers who appreciate the attention to detail and the cultural heritage associated with arak, which, in turn, is strengthening the market growth. As the market continues to evolve, arak's rich cultural heritage, distinct taste, and craftsmanship position it as a compelling choice for consumers seeking authentic and exquisite drinking experiences.

Arak Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global arak market report, along with forecasts at the global, regional, and country levels from 2023-2028. Our report has categorized the market based on source and distribution channel.

Breakup by Source:

• Grapes
• Aniseed
• Others
   

Grapes are dominating the market

The report has provided a detailed breakup and analysis of the market based on the source. This includes grapes, aniseed, and others. According to the report, grapes represented the largest segment.

The rising demand for grape-sourced arak that offers a distinct taste profile appealing to consumers seeking a beverage with a note of wine is contributing to the market growth. Besides this, grapes add a subtle sweetness and complexity to the overall flavor of the arak, which enhances its appeal among discerning drinkers. Moreover, aniseed imparts a distinctive licorice-like flavor to the spirit, giving it a unique and recognizable taste. This flavor profile appeals to consumers who enjoy the bold and aromatic characteristics associated with aniseed. Furthermore, the combination of the sweetness of grapes and the herbal, aromatic notes of aniseed results in a complex and balanced taste profile, which is highly popular among individuals seeking a rich and enjoyable drinking experience.

Breakup by Distribution Channels:

• Retail Stores
• Bars and Pubs
• Online Stores
• Others
   

Retail stores hold a larger share in the market

A detailed breakup and analysis of the market based on the distribution channel has also been provided in the report. This includes retail stores, bars and pubs, online stores, and others. According to the report, retail stores accounted for the largest market share.

The increasing consumer interest in diverse and unique alcoholic beverages is acting as a significant growth-inducing driver. With consumers seeking new and exciting drinking experiences, there is a rising demand for arak due to its cultural significance, flavor profile, and traditional production methods. Moreover, the expanding offering of arak as a specialty or signature drink in establishments, such as bars, pubs, and restaurants, is presenting remunerative growth opportunities for the market. Furthermore, the extensive accessibility of arak through various retail stores and online channels is contributing to the market growth. Besides this, the growing number of influencers, cocktail enthusiasts, and food and beverage bloggers showcasing their experiences and recommendations is impelling the market growth.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance in the market, accounting for the largest arak market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa.

The expanding trends of multiculturalism and the rise of diverse culinary experiences across North America are contributing to the market growth. In addition to this, the presence of Middle Eastern communities and the influence of their cultural practices have played a significant role in introducing arak to a broader audience in North America, thus favoring the market growth. Moreover, the rising popularity of Mediterranean cuisines in Europe and the cultural proximity and historical ties between the regions have facilitated the acceptance and appreciation of arak among European consumers, which, in turn, is strengthening the market growth. The Asia Pacific region is experiencing a growing interest in international spirits and the exploration of global beverage trends, which is also contributing to the growth of the arak market. Besides this, the presence of a sizable Muslim population in the Asia Pacific region is fueling the product demand, as arak is a popular choice due to its compliance with Islamic dietary restrictions.

Competitive Landscape:

The market exhibits a competitive landscape characterized by the existence of established players and emerging regional manufacturers. The market is fragmented, with numerous companies vying for market share and striving to differentiate themselves through product innovations, quality, and branding strategies. Several key players dominate the global arak market, leveraging their extensive distribution networks and brand recognition to maintain a strong foothold. These industry leaders invest in marketing and promotional activities to enhance brand visibility and engage with consumers effectively. Furthermore, the market has witnessed the entry of craft distilleries and small-scale producers who aim to capture niche markets and cater to the growing demand for artisanal and premium arak. As the market continues to evolve, competition is expected to intensify during the forecasted period.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Chateau Ksara
• Dominae des Tourelles
• Haddad Distilleries
• Kawar Arak
• Lebanese Arak Corporation
• Lebanese Fine Wines
• LibanonWeine
• Zumot Distilleries

Arak Market Report Scope:

Report Coverage:

Key Questions Answered in This Report:

• How has the global arak market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global arak market?
• What is the impact of each driver, restraint, and opportunity on the global arak market?
• What are the key regional markets?
• Which countries represent the most attractive arak market?
• What is the breakup of the market based on the source?
• Which is the most attractive source in the arak market?
• What is the breakup of the market based on the distribution channel?
• Which is the most attractive distribution channel in the arak market?
• What is the competitive structure of the global arak market?
• Who are the key players/companies in the global arak market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the arak market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global arak market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the arak industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.