The Middle East – An untapped market for beverage alcohol innovators?

The Middle East has potential to become a critical driver for the low- and no-alcohol movement

The Middle East may not be an obvious market to focus drinks innovation within the beverage alcohol industry, but it has potential to become a critical driver for the on-trend low- and certainly no-alcohol movement. IWSR looks at a region that may have missed out on the recent focus on moderation across the globe, however it would still require a very different strategy for success compared to other markets.

Due to its religious, social, and political outlook, the Middle East is often overlooked by drinks brands. Alcohol is completely banned in some parts of the region, such as Saudi Arabia, Iran, Kuwait, Yemen and the Emirate of Sharjah, and consumption remains low even in those countries where consumption (and in some cases production) of alcohol is allowed. As such, the Middle East has historically not been a priority target market for the beverage alcohol industry – with the very notable exception of brewers.

For many decades, brewers have invested in domestic brewing of beer where they were allowed to, devising a parallel offering of locally-made non-alcohol beers and have created product portfolios for export, aimed particularly at those countries where alcohol is completely banned. Local soft drinks companies have followed suit, launching ‘malt beverages’ – a parallel offering to non-alcohol beers.