Published: Feb, 2018

Prominent players operating in the global arak market include Domaine des Tourelles, Lebanese Fine Wines Ltd., Château Ksara, Haddad Distilleries, Lebanese Fine Wines, Eagle Distilleries Co., and Abi Raad Group, finds Transparency Market Research (TMR). A number of top players are likely to consolidate their partnerships to maintain their stronghold in the market. Several leading companies focused on product innovations are launching exotic flavors, in a move to gain a competitive edge over others, observes TMR. In addition, they are exploring a combination of impactful marketing strategies to help them stay ahead of their rivals.

The global arak market stood at US$20.8 mn in 2016 and is projected to reach a valuation of US$27.6 million by 2024 end. The global market is prognosticated to clock a CAGR of 3.6% during the forecast period of 2016–2024.

Globally, the various distribution channels for the sales of Arak comprise travel retail, supermarket, bar/pub, and liquor shop. Of these, the supermarket segment is expected to rise at a major rate over the assessment period. By the end of 2024, the distribution channel is estimated to hold the dominant share of 66.8% in the global market. The prominence of the channel is attributed to its extensive reach, the availability of a wider range of products, and the provision of in bulk.

Regionally, the Middle and Africa (MEA) accounted for the leading global share of 64.5% in 2016 and is expected to collect attractive revenues over the forecast period. The regional market is led by countries such as Lebanon, Jordan, and Syria. The MEA is trailed by North America.

arak market

Rising Popularity of Arak as Flavored Drink among Young Adults to Boost Market

The global arak market is primarily being driven by the steadily rising demand for arak among young adult populations in developing and developed regions. The widespread popularity of ethnic alcoholic drinks in numerous countries in the Middle East such as Lebanon, Jordan, Israel, Palestine, and Syria is a noteworthy factor propelling the demand for arak. The popular demand for aniseed-flavored spirits across the millennial generation in these countries is bolstering the consumption of arak in major regions.

The rising use of arak as an exotic ingredient in making high-quality cocktails and their substantial demand in restaurants in various countries of Middle East is expected to accentuate the growth of the global market. Intense efforts by arak manufacturers in the region to expand their production capacity in recent years is providing a robust impetus to the growth of the market. Furthermore, considered as a part of ethnic drink, a burgeoning hospitality industry in countries such as Lebanon is a crucial factor offering a robust fillip to the demand for arak.

Persistently Volatile Political Scenario in Middle East Countries Crippling Demand

However, the economic uncertainty precipitated by a persistently volatile political scenario in several countries of the Middle East is a critical factor adversely affecting the growth of the global arak market. The ongoing political tensions in Syria and the chaos caused by civil war are unfavorably impacting the growth. The rise in cost of production and sales of arak is severely hindering the demand in the country.

Nevertheless, the adoption of innovative mix of marketing strategies by manufacturers, coupled with the rise in disposable incomes, is boosting the global arak market. The launch of arak of premium varieties is a noteworthy trend anticipated to significantly catalyze the growth of the market.  The vast changes in lifestyle of younger populations and a rapidly emerging hospitality industry in various parts of the MEA are offering a sustained thrust to the demand for arak. Furthermore, the advent of exotic flavors augurs well for the overall market.

The study presented here is based on a report by Transparency Market Research (TMR) titled “Arak Market (Source - Obeidi or Merwah Grapes, Anise Seeds, and Powder; Distribution Channel - Supermarket, Travel Retail, Liquor Shop, and Bar/Pub) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016–2024

Key Takeaways

  • The popular demand for ethnic flavored alcoholic drinks in young generations is a prominent factor driving the market
  • An uncertain political and economic situation in the Middle East is a glaring restraint; however, a rapidly emerging hospitality industry in the region is creating promising opportunities for manufacturers.

The global arak market is segmented based on:

  • Source Type
    • Obeidi or Merwah Grapes
    • Anise Seeds
    • Powder
  • Distribution Channel
    • Supermarket
    • Travel Retail
    • Liquor Shop
    • Bar/Pub


  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa
  • Latin America

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