Arak Market to Develop Rapidly by 2024
Posted: Dec 11, 2017
Transparency Market Research points out that the key players operating in the global arak market are Abi Raad Group, Kawar, Eagle Distilleries Co., and Lebanese Fine Wines among others. The report states that the companies are expected to strengthen their partnerships in the coming years to expand their horizons. Furthermore, players are also expected to focus on reinventing arak with impacting marketing strategies and product innovation.
According to the research report, the global arak market was valued at US$20.8 mn in 2016 and is anticipated to be worth US$27.6 mn by the end of 2024. During the forecast period of 2016 and 2024, the global market is estimated to expand at a CAGR of 3.6%.
On the basis of distribution channel, the global arak market is segmented into supermarket, travel retail, liquor shop, and bar/pub. Of these, the supermarket segment is anticipated to show the highest growth in the coming years. Analysts project that this segment is slated to acquire a share of 66.8% in the global arak market by the end of 2024.
Geographically, the global arak market is segmented into North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. Out of these segments, the Middle and Africa is expected to make a noteworthy contribution to the rising revenue of the arak market. As of 2016, this geographical segment held a share of 64.5% in the overall market. North America is anticipated to follow the lead in the coming years as well.
The demand for arak is anticipated to continue to be on the rise due to changing dietary habits and lifestyles. Primarily known as an ethnic alcoholic drink, the demand for arak is projected to soar as countries such as Jordan, Lebanon, Syria, Israel, and Palestine continue to make it an integral part of their diet. Furthermore, the booming hospitality industry in Lebanon has also contributed to the growing profits of the arak market. Growing production of arak in various flavors has also presented mammoth opportunities to the global market in recent years. Efforts taken by manufacturers in the Middle Eastern countries such as Syria, Jordan, Israel, and Lebanon to preserve this traditional drink are also expected drive the market’s growth.
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The changing political scenario of the Middle East has significantly marred the earnings of the global arak market. The ongoing Syrian conflict has resulted in high cost of raw materials required for producing arak. This has resulted in the high production cost of arak and thereby increased the selling price as well. Furthermore, the poor regulations pertaining to the production of arak have also resulted in homemade arak and unlabeled arak, which is hampering the sales of commercialized arak brands.
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