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.
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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.
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