Introduction Of UAE
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The non-alcoholic beverage market in the UAE is experiencing a remarkable surge, with demand for “dry” drinks continuing to grow. According to Statista Market Insights, the non-alcoholic beer segment alone is projected to grow at an annual rate of 3.80% over the next four years, reaching revenues of $94.6 million by 2025.
Global and Regional Trends Driving Demand
While global alcoholic beverage consumption has seen a slight decline over the past two years, the non-alcoholic sector is witnessing a boom. This shift is particularly evident among Millennials and Gen Z consumers who are increasingly opting for alcohol-free alternatives. Several factors are fueling this trend, including religious considerations, health consciousness, concerns about alcoholism, and economic factors such as inflation.
In 2024, the liquor industry recorded a downturn, with the Distilled Spirits Council of the US reporting a 1.1% drop in total spirits revenue. Similarly, Euromonitor International noted a marginal 0.2% decline in the alcoholic drinks market in 2023. However, in contrast, major industry players like Diageo experienced a 56% growth in their non-alcoholic product portfolio, reflecting the shifting consumer landscape.
Pioneering the UAE’s Dry Drinks Market
When Drink Dry, the UAE’s first dedicated 0.0% beverage marketplace, launched in 2021, non-alcoholic options were limited. Founder and CEO Erika Doyle initially expected a slow start, but consumer demand quickly exceeded expectations, prompting additional shipments of non-alcoholic beer and sparkling wine. The success of Drink Dry underscores a growing preference for sophisticated, alcohol-free beverages in social settings.
Doyle’s decision to launch the platform stemmed from a personal need for healthier alternatives. “When I first moved to the country six years ago, it felt like travelling back in time, where there was just nothing available for an adult consumer who was health-conscious and liked to socialise,” she explained in an interview with Khaleej Times.
Innovation in Non-Alcoholic Brewing
Majlis Craft Arabian Ale, a UAE-based brand, has introduced a unique approach to brewing non-alcoholic beverages. Inspired by the region’s history, the company’s founder, Igor Sergunin, highlighted how ale was accidentally brewed in the Arabian Peninsula 10,000 years ago due to the fermentation of leftover bread liquid.
Unlike conventional methods, where alcohol is removed post-brewing, Majlis Craft Arabian Ale is crafted to be alcohol-free from the start. “It’s all about the math,” Sergunin noted, emphasizing the scientific precision required to create a high-quality malt beverage without alcohol.
International Brands Enter the UAE Market
The UAE’s expanding market has also attracted international brewing giants. United Dutch Brewery identified the opportunity early, introducing its ‘3 Horses’ non-alcoholic malt beverage to the UAE over 30 years ago. More recently, European brewing company TCB Beverages has also sought to establish a foothold in the region.
“For us, it’s an additional new business category to go into soft drinks, alcohol-free, malt beverages. We have that in Germany already, but I think this is the perfect market for it,” said TCB Beverages Managing Director Alex Kleon.
A Growing Industry with a Promising Future
The UAE’s non-alcoholic beverage market is evolving rapidly, with increasing consumer interest driving innovation and competition. As more brands—both local and international—seek to capitalize on this trend, the market is poised for sustained growth. With a projected revenue nearing $100 million by 2025, the UAE is establishing itself as a hub for premium alcohol-free beverages, catering to a diverse and health-conscious audience.
