The Middle East and North Africa (MENA) region is experiencing a dynamic shift in its beverage industry, with canned wine emerging as a popular trend. Traditionally dominated by conventional glass bottles, the wine market in MENA is now embracing the convenience, portability, and sustainability offered by canned wine. This trend is driven by changing consumer preferences, a burgeoning expatriate population, and evolving social and cultural landscapes.

According to the UnivDatos Market Insights analysis, an increased urban population leads to higher demand for ready-to-drink alcoholic beverages. This will drive the scenario of canned wine and as per their “MENA Canned Wine Market” report, the market was valued at USD 185 million in 2023, growing at a CAGR of 4.5% during the forecast period from 2024 - 2032 to reach USD million by 2032. 

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Rising Consumer Demand

The demand for canned wine in MENA is witnessing a significant uptick. Convenience and portability are major factors driving this trend. Canned wine is easy to carry, ideal for outdoor events, and perfect for on-the-go consumption, appealing to the modern, busy lifestyle. Additionally, the single-serving nature of canned wine reduces waste and encourages moderate consumption, aligning with the health-conscious mindset of today’s consumers.

The expatriate population in the MENA region, particularly in the Gulf Cooperation Council (GCC) countries, is a major driver of this demand. With a significant number of expatriates coming from countries where canned wine is already popular, there is a natural inclination towards this product. Retailers and hospitality providers are responding by expanding their offerings to include a variety of canned wine options.

Recent Developments/Awareness Programs:- Several key players and governments are rapidly adopting strategic alliances, such as partnerships, or awareness programs for the treatment:-

·       In 2023, CityDrinks, an alcohol delivery app based in Abu Dhabi, announced the launch of its operations in the emirate following the legalization of alcohol delivery in the UAE. The launch of CityDrinks comes after the UAE government recently passed a law allowing the delivery of alcoholic beverages to customers' homes. This move is expected to boost the alcohol industry in the country, which has been growing steadily in recent years.

·       Brown-Forman Global Travel Retail and Emirates Leisure Retail unveiled the new-look Jack's Bar Grill at Dubai International Airport in 2022

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Government Regulations and Market Challenges

The sale and consumption of alcohol in MENA are subject to strict regulations, which vary significantly across the region. Understanding and navigating these regulations is crucial for any business looking to enter the canned wine market.

In countries like the UAE, Qatar, and Bahrain, the sale of alcohol is heavily regulated, with specific licensing requirements for importers, distributors, and retailers. Alcohol can only be sold in licensed venues, and advertising is restricted. These regulations can pose challenges for new entrants but also ensure that the market operates within a structured framework.

Moreover, import duties on alcoholic beverages can be high, impacting the final retail price of canned wine. However, the potential for local production could mitigate some of these cost challenges. If regional wineries and beverage companies start producing canned wine locally, it could reduce dependency on imports and make the product more affordable for consumers.

Conclusion

The canned wine market in MENA is poised for significant growth, driven by rising consumer demand, innovative product offerings, sustainability trends, and strategic collaborations. While regulatory challenges and market entry barriers exist, the potential rewards make this an attractive segment for both international and regional players. As the market evolves, we can expect to see a broader range of canned wine products catering to diverse tastes and preferences. The adoption of advanced manufacturing techniques and potential local production will further enhance the market’s growth prospects.

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