Executive Summary

Feb 2019
PROSPECTS
On-trade sales continue to limit retail growth

The United Arab Emirates is a popular holiday destination and commerce centre, with the number of international visitors continuing to rise, thus contributing to growth within fine wines/champagne and spirits. However, the fact that consumers tend to drink luxury alcohol outside the home is limiting retail sales.

Excise tax exemption boosts growth

In October 2017, an excise tax of 100% was introduced for tobacco and energy drinks, while a 50% tax was introduced for soft drinks. This is the first example of such a tax in the United Arab Emirates, with the next wave set for January 2018, when a 5% Value Added Tax (VAT) will be applied across the majority of products and services.

Retail distribution limited to licenced outlets

Fine wines/champagne and spirits off-trade distribution is restricted to licenced outlets, mainly the MMI and African + Eastern chains. Outlets are usually positioned next to supermarkets/hypermarkets or in neighbourhoods, although windows are covered.

COMPETITIVE LANDSCAPE
International players and on-trade sales dominate

Leading international players like Diageo, Pernod Ricard Group and LVMH Moët Hennessy Louis Vuitton lead sales in fine wines/champagne and spirits. Diageo’s Johnnie Walker, Pernod Ricard’s Chivas Regal and LVMH’s Moët & Chandon and Dom Pérignon are regularly purchased by residents off-trade for home consumption on special occasions.

Weak promotional activity limits sales

As strict laws regarding alcohol advertising are in place, strong international publicity campaigns and airport free-zone promotions are the major advertising channels for players in this area. Oktoberfest has gained attention among a wide range of drinkers, with bars and clubs like Irish Village and Barasti holding regular events in Dubai.

Partnerships with local players help to raise awareness

Major manufacturers of luxury alcoholic drinks also work with local players to organise exclusive degustation events and informal tastings in major cities in a bid to increase awareness of high-quality alcoholic drinks and brand recognition. Over the forecast period, this trend should continue, with expats, especially Russians, supporting sales of fine wines/champagne and spirits in the country.

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Fine Wines/Champagne and Spirits in the United Arab Emirates

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Overview

Discover the latest market trends and uncover sources of future market growth for the Fine Wines/Champagne and Spirits industry in United Arab Emirates with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Fine Wines/Champagne and Spirits industry in United Arab Emirates, our research will save you time and money while empowering you to make informed, profitable decisions.

The Fine Wines/Champagne and Spirits in United Arab Emirates market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Fine Wines/Champagne and Spirits in United Arab Emirates?
  • What are the major brands in United Arab Emirates?
  • How dynamic is the growth of Fine Wines/Champagne and Spirits internet sales?
  • What is driving growth?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply function

Fine Wines/Champagne and Spirits in the United Arab Emirates - Category analysis

HEADLINES

PROSPECTS

On-trade sales continue to limit retail growth
Excise tax exemption boosts growth
Retail distribution limited to licenced outlets

COMPETITIVE LANDSCAPE

International players and on-trade sales dominate
Weak promotional activity limits sales
Partnerships with local players help to raise awareness

CATEGORY DATA

Table 1 Sales of Fine Wines/Champagne and Spirits by Category: Value 2013-2018
Table 2 Sales of Fine Wines/Champagne and Spirits by Category: % Value Growth 2013-2018
Table 3 NBO Company Shares of Fine Wines/Champagne and Spirits: % Value 2013-2017
Table 4 LBN Brand Shares of Fine Wines/Champagne and Spirits: % Value 2014-2017
Table 5 Distribution of Fine Wines/Champagne and Spirits by Format: % Value 2013-2018
Table 6 Forecast Sales of Fine Wines/Champagne and Spirits by Category: Value 2018-2023
Table 7 Forecast Sales of Fine Wines/Champagne and Spirits by Category: % Value Growth 2018-2023

Luxury Goods in the United Arab Emirates - Industry Overview

EXECUTIVE SUMMARY

Unstable performance for luxury goods in United Arab Emirates
Rising demand for high quality
Retailers respond to intense competition
Internet retailing continues to grow in popularity
Luxury goods growth to remain limited

MARKET INDICATORS

Table 8 Number of High Net Worth Individuals (HNWI): 2013-2018

MARKET DATA

Table 9 Sales of Luxury Goods by Category: Value 2013-2018
Table 10 Sales of Luxury Goods by Category: % Value Growth 2013-2018
Table 11 Inbound Receipts for Luxury Goods by Country of Origin: Value 2013-2018
Table 12 NBO Company Shares of Luxury Goods: % Value 2013-2017
Table 13 LBN Brand Shares of Luxury Goods: % Value 2014-2017
Table 14 Distribution of Luxury Goods by Format and Category: % Value 2018
Table 15 Forecast Sales of Luxury Goods by Category: Value 2018-2023
Table 16 Forecast Sales of Luxury Goods by Category: % Value Growth 2018-2023

SOURCES

Summary 1 Research Sources