Middle East & Africa Beer Market

MEA Beer Market Analysis

The Middle East & Africa Beer Market is expected to register a CAGR of 4.82% during the forecast period.

The Middle East & African beer market may be driven in the medium term by shifting lifestyles, rising alcohol consumption rates, growing urbanization, high disposable incomes, and the youth beer craze. Additionally, the ease of shopping through e-commerce websites is also driving the beer market. Customers across the region prefer doorstep delivery as they consider it a convenient mode of shopping. Hence, the market players are launching doorstep delivery services to cater to the demands of the customers. For instance, in August 2022, African Eastern and MMI introduced a new, legal home delivery service for wines, whiskey, spirits, and beers in Dubai, United Arab Emirates.

Craft beer was a prominent trend in several nations in the region, adding dynamism to the market as a whole with a variety of innovative products. Craft brewers' ales, wheat beers, stouts, and other beverages appeal to beer consumers who are tired of mainstream lagers or who are brand new to the beer industry. Craft beer satisfies the craving for something unique, contributes to the premiumization and sophistication of beer, and provides producers with higher profit margins than the widely available mid-priced lagers.

COVID-19 caused a rise in the cost of both domestically produced and imported beer across the region. The supply chain disruption, which raised the price of raw materials and the transportation of finished goods, was to blame for the price rise. Raw materials were also scarce due to the regional production halt and labor constraints. However, the business has expanded recently, as consumers increasingly favored drinking at home as bars, taverns, and restaurants closed.

MEA Beer Market Trends

Inclination Towards Low Alcohol by Volume Beer

The key factors propelling the Middle East & African beer market are the expanding numbers of breweries and the rising demand for beer throughout the region. The taste for low-alcohol-by-volume beverages has steadily increased. Additionally, due to growing interest from consumers who are health-conscious, sales of low- and no-alcohol beers have increased. The introduction of fresh and cutting-edge items is one of the additional aspects promoting market expansion. For example, in 2020, Heineken launched an alcohol-free range in the United Arab Emirates beer market.Additionally, low-alcohol beers, particularly those with an ABV of 2.8% or less, are now more affordable than their high-alcohol counterparts.

To meet an increase in demand, retailers in the United Arab Emirates are stocking their shelves with alcohol-free beers and spirits. Some popular soft drinks are being outsold by alcohol-free beers and spirits as consumers seek out healthier options for their go-to libations. In Dubai, restaurants have begun to promote beer bargains without alcohol as a part of their weekend brunch packages.

Africa as the Largest Market Share Holder in the Region

With regard to regional beer consumption, Africa holds the largest share of the Middle East and Africa Beer market. The colonial impact that the African nations experienced in the past largely contributed to the development of the consumers' interest in consuming more of these beverages. South Africans are among the world's heavy drinkers, consuming 55.40 liters of beer per person annually, according to the World population review study that was conducted in the year 2020. The region also witnessed a rise in the popularity of craft beer in the past few years. Additionally, the rise in popularity of craft beer offers a lot of opportunities to brewers across the region. For instance, as of 2020, there were more than 200 craft breweries in South Africa, according to the Craft Brewers Association of South Africa. Furthermore, a number of breweries offer online doorstep delivery of craft beers in Africa including Darling Brewery, and Bar Keeper, among others.

MEA Beer Industry Overview

The Middle East & African beer market is fragmented and the players in the market include regional as well as international companies. The market is growing as the market players use various corporate strategies and increase investments to grow in the market as well as to innovate and expand their product offerings in the market. Some of these strategies include product innovations, acquisitions, and expansions. For instance,in 2021 the South African Breweries introduced Castle Double Malt, a golden-tasting marvel and Africa's first double malt lager. The 410ml pearl, green, and gold can and the 340ml premium green bottle in which the new beer was packaged were both unveiled at Johannesburg's The Munro Boutique Hotel. The major players operating in the market include Heineken N.V., Diageo PLC, Carlsberg Group, Boston Beer Company, and Three Horses Beer.

MEA Beer Market Leaders

MEA Beer Market News

• In 2022, 25hours Hotel One Central in Dubai launched a beer garden- Ernst the chic venue to stay, work, chill and play.
• In 2021, Distell and Namibia Breweries were acquired by Heineken, as a part of the plan to combine them with Heineken South Africa to form a new Heineken company with a total estimated value of about USD 4.58 billion.
• In 2021, Amstel introduced new 0.0% alcohol beers with pomegranate-flavored malts in the United Arab Emirates.