Arak Market was valued at USD 1.2 Billion in 2022 and is projected to reach USD 1.8 Billion by 2030, growing at a CAGR of 6.0% from 2024 to 2030.
The Arak market, classified by application, encompasses a wide range of end-use sectors that contribute to its growth and consumption. This alcoholic beverage, deeply rooted in Middle Eastern culture, is consumed in various settings, including supermarkets, travel retail, liquor shops, and bars or pubs. As global consumption patterns shift, the demand for Arak has become diverse, with each application segment showing its unique characteristics. The market for Arak by application is expanding, driven by cultural integration, tourism, and growing recognition in international markets. Understanding the dynamics of each application type is essential for stakeholders aiming to enter or expand their presence in the Arak industry.
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Supermarkets are one of the leading retail channels for Arak, as they offer convenience and easy access to this popular spirit. Arak’s availability in supermarkets has risen due to the increasing demand from both domestic consumers and international buyers looking for a taste of Middle Eastern culture. Supermarkets provide an extensive variety of Arak brands, catering to different tastes, price ranges, and customer preferences. The growing trend of premiumization in supermarkets has also seen the introduction of high-quality Arak options targeting more discerning customers. Additionally, supermarkets often promote Arak during festive seasons or cultural celebrations, further driving its consumption.
In supermarkets, the availability of Arak is often associated with larger beverage sections that feature local and international alcoholic beverages. This category benefits from a steady customer base, including those familiar with Arak’s distinctive aniseed flavor. Promotions, bulk sales, and discounts also play a key role in attracting a wider audience, including first-time buyers looking to try something new. Moreover, the strategic placement of Arak near complementary products like mixers and meze helps in encouraging spontaneous purchases, contributing to increased sales within the supermarket environment.
Travel retail has become a significant channel for the Arak market, particularly in duty-free stores at airports and other international travel hubs. Arak, often marketed as a cultural delicacy, appeals to travelers seeking authentic products and souvenirs from their destinations. The growing number of international travelers from regions where Arak is popular, such as the Middle East, has contributed to the growth of Arak’s presence in this segment. Duty-free stores typically offer a premium range of Arak, targeting travelers who wish to take home high-quality spirits that are not readily available in their home countries.
The appeal of Arak in travel retail is driven by the convenience of purchasing alcohol without the added taxes and duties found in standard retail environments. Furthermore, limited-edition bottles or exclusive packaging are often marketed to encourage purchases among tourists who may want to buy a unique product as a gift or personal keepsake. As international travel continues to rebound post-pandemic, the travel retail channel for Arak is expected to grow, providing a significant opportunity for brands to increase their global visibility and reach.
Liquor shops play a pivotal role in the Arak market by offering specialized spaces for alcoholic beverages. These retail outlets cater to customers seeking high-quality, authentic Arak for personal consumption. Liquor shops, unlike supermarkets, often provide a more curated selection, focusing on niche and premium products. As consumer interest in international spirits grows, liquor shops have become an important touchpoint for those looking for imported or traditional spirits like Arak. This segment benefits from a loyal customer base, particularly among connoisseurs and those familiar with the Middle Eastern culture where Arak is commonly consumed.
Liquor shops typically provide expert knowledge on the product, allowing consumers to explore different varieties of Arak, ranging from mass-market options to rare, small-batch offerings. Additionally, liquor shops often offer tastings, allowing customers to sample different brands before making a purchase. With the increasing trend towards premiumization, liquor shops also serve as an ideal venue for launching limited-edition or high-end Arak products, appealing to consumers with more refined tastes. The growth of craft spirits and artisanal beverages also supports the expanding role of liquor shops in the Arak market.
Bartenders and pub owners have begun incorporating Arak into their drink menus, capitalizing on the growing trend of cultural and exotic cocktails. In bars and pubs, Arak is traditionally consumed neat, mixed with water, or used as a base in cocktails, offering a unique twist on conventional drinks. The increasing interest in Middle Eastern cuisine and beverages, alongside the rise of experiential drinking, has contributed to the growing popularity of Arak in bars and pubs globally. The inclusion of Arak in bars and pubs allows consumers to engage with the product in a social setting, where it can be served alongside various appetizers, such as mezze or grilled meats.
Moreover, the rise of cocktail culture has led to the use of Arak in innovative drink recipes, drawing in younger and more adventurous consumers. The versatility of Arak as an ingredient in cocktails is an important factor driving its use in bars and pubs, with mixologists experimenting with different combinations and flavors to create unique offerings. As global interest in diverse and unique drinking experiences grows, Arak is increasingly viewed as an exciting addition to the menu in the bar and pub environment, further boosting its popularity and sales.
One of the most prominent trends in the Arak market is the growing demand for premium and artisanal Arak. Consumers are shifting toward higher-quality offerings that emphasize craftsmanship, authenticity, and traditional production methods. This trend is being driven by a broader consumer preference for premium spirits, as well as a desire for products that provide a unique, authentic experience. Another key trend is the rise of global interest in Middle Eastern culture, which is fostering increased curiosity around Arak and other regional spirits. As international exposure to Middle Eastern cuisine, hospitality, and traditions grows, Arak is becoming a more familiar and sought-after drink worldwide.
In addition, the increasing interest in sustainable and eco-friendly practices in the alcoholic beverage industry is influencing the Arak market. Producers are adopting greener methods of production, including environmentally friendly packaging and sourcing local ingredients to reduce the carbon footprint. This trend is in line with the broader global movement toward sustainability, attracting environmentally conscious consumers. The digital transformation of the alcohol industry is also playing a significant role, with online sales channels and direct-to-consumer platforms expanding, making Arak more accessible to international markets and consumers who prefer shopping from home.
The global rise of interest in unique and culturally significant beverages presents a major opportunity for the Arak market. As more people discover the distinct flavor profile of Arak, there is a growing potential for the spirit to reach new markets, particularly in the U.S. and Europe. With the growing global interest in Middle Eastern culture and cuisine, there is a vast untapped consumer base eager to explore regional drinks like Arak. This creates an opportunity for producers to tailor their offerings to international tastes while maintaining the authenticity that Arak is known for.
Another opportunity lies in the expanding tourism sector. As international travel continues to grow, particularly in the Middle East and surrounding regions, more consumers will be exposed to Arak in its native settings, creating demand in global travel retail outlets. Additionally, there is potential for innovation within the product segment, such as introducing flavored Arak or low-alcohol options to cater to a broader consumer base. By diversifying product lines and strengthening distribution networks, Arak brands can capitalize on these emerging opportunities and expand their market share globally.
What is Arak?
Arak is a traditional anise-flavored spirit that is popular in the Middle East and other parts of the world. It is made from fermented grains or fruits, and it has a distinct licorice-like taste.
How is Arak consumed?
Arak is typically consumed neat or mixed with water, which turns the drink milky white. It is often served with traditional Middle Eastern appetizers, such as mezze.
Where is Arak traditionally produced?
Arak is primarily produced in countries like Lebanon, Syria, Jordan, and Palestine, but it is also made in Turkey and other Middle Eastern regions.
What is the alcohol content of Arak?
Arak typically has an alcohol content ranging between 40% and 60%, depending on the brand and production methods.
Can Arak be used in cocktails?
Yes, Arak can be used as a base in cocktails, particularly in Middle Eastern-inspired drinks, adding a unique flavor to mixed beverages.
Is Arak available outside the Middle East?
Yes, Arak has become available in international markets, particularly in supermarkets, liquor stores, and bars that cater to multicultural consumers.
What is the difference between Arak and ouzo?
Both Arak and ouzo are anise-flavored spirits, but Arak is traditionally made from grapes, while ouzo is typically made from grains or other neutral spirits.
Is Arak a popular drink for celebrations?
Yes, Arak is often consumed during special occasions and celebrations, particularly in Middle Eastern cultures, where it is enjoyed with friends and family.
Can Arak be aged?
While some varieties of Arak can be aged, most are consumed young to preserve their fresh, aniseed flavor.
How is Arak served traditionally?
Arak is traditionally served in small glasses, mixed with water and ice, often accompanied by meze or other small dishes.
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Lebanese Arak Corporation
Abi Raad Group Sarl
Kawar Arak
Eagle Distilleries
Haddad Distilleries
Lebanese Fine Wines
Domaine des Tourelles
By the year 2030, the scale for growth in the market research industry is reported to be above 120 billion which further indicates its projected compound annual growth rate (CAGR), of more than 5.8% from 2023 to 2030. There have also been disruptions in the industry due to advancements in machine learning, artificial intelligence and data analytics There is predictive analysis and real time information about consumers which such technologies provide to the companies enabling them to make better and precise decisions. The Asia-Pacific region is expected to be a key driver of growth, accounting for more than 35% of total revenue growth. In addition, new innovative techniques such as mobile surveys, social listening, and online panels, which emphasize speed, precision, and customization, are also transforming this particular sector.
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Growing demand for below applications around the world has had a direct impact on the growth of the Global Arak Market
Supermarket
Travel Retail
Liquor Shop
Bar/Pub
Based on Types the Market is categorized into Below types that held the largest Arak market share In 2023.
Obeidi or Merwah Grapes
Anise Seeds
Powder
Global (United States, Global and Mexico)
Europe (Germany, UK, France, Italy, Russia, Turkey, etc.)
Asia-Pacific (China, Japan, Korea, India, Australia, Indonesia, Thailand, Philippines, Malaysia and Vietnam)
South America (Brazil, Argentina, Columbia, etc.)
Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria and South Africa)
1. Introduction of the Global Arak Market
Overview of the Market
Scope of Report
Assumptions
2. Executive Summary
3. Research Methodology of Verified Market Reports
Data Mining
Validation
Primary Interviews
List of Data Sources
4. Global Arak Market Outlook
Overview
Market Dynamics
Drivers
Restraints
Opportunities
Porters Five Force Model
Value Chain Analysis
5. Global Arak Market, By Type
6. Global Arak Market, By Application
7. Global Arak Market, By Geography
Global
Europe
Asia Pacific
Rest of the World
8. Global Arak Market Competitive Landscape
Overview
Company Market Ranking
Key Development Strategies
9. Company Profiles
10. Appendix
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