Global Arak Market: Snapshot
The global arak market has been growing at a steady pace due to its rising popularity amongst the younger generation. The report states that the global market is likely to benefit from the adoption of arak as a key ingredient in a variety of cocktails in the coming years. Additionally, increasing production of arak and efforts put in by producers to preserve the ethnic drink are also expected to benefit the global market. Owing to these reasons, the global arak market is expected to be worth US$27.6 mn by 2024 end from US$20.8 mn in 2016. Between the forecast years of 2016 and 2024, the global market is projected to rise at a CAGR of 3.6%.
The research report states that the rise of bars, pubs, restaurants, and gourmet joints are expected to boost the growth of the global arak market in the coming years. The introduction of new brands and revival of this traditional drink with brilliant marketing strategies is expected to play an important role in the development of the overall market. Analysts predict that changing lifestyles, increasing disposable incomes, and emerging hospitality industry in countries such as Lebanon, Syria, Israel, and Palestine is also expected to make a significant contribution to the soaring profits of the global arak market. The launch of types of arak such as delicate premium green, premium red classic, and premium black are also anticipated to lure in a new consumer base.
Volatile Political Climate Increases Cost of Arak
The biggest challenge in the global arak market is the volatile political situation in Syria, which has considerably raised the prices of raw materials required for manufacturing arak. Thus, the high production costs have rendered higher selling prices, thereby creating a negative impact on the sales. The poor licensing policies and lack of regulatory norms governing the production of arak have also hampered the profits of arak market as it has allowed the production of homemade and unlabeled arak. Collectively, these factors are expected to restrain the global market in the coming years.
In terms of the distribution channel, the global arak market is segmented into the supermarket, travel retail, liquor shop, and bar or pub. Analysts have high hopes from supermarkets to drive the sales of arak across the globe. The wide reach of supermarkets, ability to provide a broader range of products, and bulk storage are anticipated to work in favor of this segment. As of 2015, the supermarket segment was worth US$13.0 mn. The report concludes, that this distribution channel will continue to dominate the global market in the coming years.
Middle East to Remain Key Consumer of Arak
In terms of geography, the global arak market is segmented into North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. The report indicates that the high demand for arak from the Middle Eastern countries is expected to keep this geographical segment at the forefront in the coming years. As of 2016, the Middle East and Africa held a share of 64.5% in the global market. Jordan, Syria, and Lebanon are expected to be the key consumers of arak in the near future.
The key players operating in the global arak market are Lebanese Arak Corporation, Abi Raad Group Sarl, Kawar Arak, Eagle Distilleries Co, Haddad Distilleries, Château Ksara, Lebanese Fine Wines Ltd., and Domaine des Tourelles. These players are expected to strengthen their partnerships to expand businesses. Furthermore, companies are also expected to focus on product innovation and launch of new flavors to appeal to the younger population in the coming years.
Global Arak Market: Overview
Transparency Market Research (TMR) offers a 10-year forecast for the global arak market between 2016 and 2024. In terms of value, the market is expected to register a CAGR of 3.6% during the forecast period. The primary objective of the report is to offer key insights on the expected future growth of the global arak market. The study demonstrates market dynamics that are expected to influence the current environment and future status of the global arak market over the forecast period. The primary objective of this report is to offer updates on global arak market.
A section of the report discusses various factors that is driving the market. Revenue from sales of natural ingredients is forecasted to increase substantially in countries such as India, Lebanon, Israel, Syria and Palestine over the forecast period. While demand for natural ingredients is on the rise, consumption of arak is also expected to increase in Asia Pacific and MEA region.
Global Arak Market: Drivers
Increasing local demand for arak in various developed and developing countries are factors expected to drive growth of the global arak market over the forecast period. As a result of increasing demand for local arak in various Middle Eastern and Asia Pacific countries are creating opportunities for various players in the global arak market. Ever-rising demand for arak with natural ingredients is also expected to result in significantly high sales of arak market.
Global Arak Market: Segmentation
The report offers data regarding market share of the global arak market and the market is segmented on the basis of source type into obeidi or merwah grapes and anise seeds. The market is also segmented on the basis of distribution channels, which includes supermarket, liquor shops, travel retail and bar or pub. The report also highlights various trends in the global arak market. A section of the report highlights region-wise trends in the global arak market. It also provides a market outlook for 2016–2024, and sets the forecast within the context of the segment by source type, and distribution channel. This study discusses key regional trends contributing to growth of the global arak market, as well as analyses the degree to which drivers are influencing markets in each region. Key regions assessed in this report include North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Among the various source type segments, the obeidi or merwah grapes segment is expected to contribute significantly in terms of revenue to the global market, followed by the anise seeds segment respectively. The market is driven by increasing demand for arak made from natural ingredients, which is expected to fuel significant growth of the arak market during the forecast period. A detailed analysis has been provided for each segment in terms of region-wise market size analysis.
In addition, it is imperative to note that in an ever-fluctuating economy, we not only conduct forecasts in terms of CAGR, but also analyze on the basis of key parameters such as year-on-year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities.
Also, another key feature of this report is the analysis of all key segments in terms of absolute dollar. This is traditionally overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales and delivery perspective in the global arak market.
Key Players Mentioned in this Report are:
In the final section of the report, a competitive landscape has been included to provide report audiences with a dashboard view. Detailed profiles of key players are also included in the scope of the report to evaluate their long-term and short-term strategies, recent developments, key brands and products offered. Key players in the global arak market covered in the report include Abi Raad Group Sarl, Kawar Arak, Haddad Distilleries, Eagle Distilleries Co, Lebanese Arak Corporation, Château Ksara, Domaine des Tourelles, and Lebanese Fine Wines Ltd.
Key Segments Covered
- By Source Type
- Obeidi or Merwah grapes
- Anise seeds
- By Distribution Channel
- Travel Retail
- Liquor Shop
Key Regions Covered
- North America
- Asia Pacific
- Middle East & Africa
- Latin America