Arak Market Report

Global Arak Market Size

The global arak market size was valued at USD 15.64 billion in 2025, and the global market size is estimated to reach USD 21.35 billion by 2034 from USD 16.19 billion in 2026, registering a CAGR of 3.52% during the forecast period 2026 to 2034.

Arak is a distilled sugar-free beverage, considered one of several anise-based drinks. Arak drink is originally a traditional alcoholic beverage and is considered a national drink of Lebanon in Western Asia. The drink is made mainly from grapes and anise obtained from the anise plant, which gives it a licorice flavor due to the presence of the compound anethole. Previously, arak was traditionally prepared and used, but as technology and innovation advanced, commercial production of the drink has become a practice. The drink is made through fermentation and triple distillation processes, and in some varieties dates, sugar, plums, figs, and molasses are also added. The alcohol content of arak is usually between 40 and 60%, and it has the unique characteristic of turning a milky white color to translucent when water is added. Commercial variants of arak are produced using different types of flasks and a variety of flavors are added to the drinkArak is a clear, colorless, unsweetened anise-flavored distilled alcoholic drink. Arak is the traditional alcoholic beverage in the Arab world, especially in the Levant/Mashriq and also in Iran and Turkey. Arak is usually mixed in proportions of approximately one-third arak and two-thirds water in a traditional Eastern Mediterranean water vessel called Abarik.

MARKET DRIVERS

Arak recently gained popularity in countries other than Western Asia due to its unique characteristics. Increased alcohol consumption, product variations, commercial production, greater awareness of traditional drinks, expansion of distribution channels such as restaurants and bars, improved equipment efficiency, the addition of various flavors and ingredients, increased exports to other countries the growth of the global arak market. Traditional drinks have been produced for a long time and different varieties are found in different parts of the world. These drinks are specialized in the culture and traditional practices used to make them, which has always aroused the interest of travelers and tourists who visit these places. The commercialization of traditional beverages such as arak has opened up new opportunities in the beverage sector. Arak and other high-quality alcoholic beverages have gained popularity in the local and international markets. The main distilleries are investing in the production of traditional beverages and are focusing on increasing exports to expand the market.

MARKET RESTRAINTS

The biggest challenge in the global arak market is the unstable political situation in Syria, which has dramatically increased the prices of the raw materials needed to make arak. Thus, high production costs caused sales prices to be higher, thus creating a negative impact on sales. The lack of standard government regulations in arak production hampered profits, as it allowed the making of homemade and unlabeled arak. Also, increased competition, availability of substitute products such as wine, lack of consumer awareness, traditional beliefs, limited commercial producers, regulation, and government policies are limiting the developments in the market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Distribution Channel

The Obeidi or Marwah grape arak drink holds the major share in the market while the anise seeds segment is expected to grow the fastest due to its increasing popularity. Based on distribution channels supermarkets hold the major share in the market while the liquor shops segment is expected to grow the fastest. Middle East and Africa is dominating the market due to their religious obligation to consume the drink and the presence of market leaders. The Asia Pacific is expected to grow the fastest owing to its increasing disposable income and growing urban population

REGIONAL ANALYSIS

The Asia Pacific dominates the world market for Arak, due to its increasing popularity among the younger generation. Europe is supposed to increase arak production, and producers' efforts to preserve the ethnic drink are likely to benefit the world market. During the forecast period, North America is estimated to be one of the fastest-growing regions in the Arak Market. The Middle East and Africa is also prominent market due to their religious obligation to consume the drink and the presence of market leaders. Moreover, the Asia Pacific is expected to experience considerable growth due to increased disposable income and urban population growth.

KEY MARKET PLAYERS

Key Players in the Arak Market are Domaine des Tourelles, Lebanese Fine Wines Ltd, Château Ksara, Haddad Distilleries, Eagle Distilleries Co, Kawar Arak, Abi Raad Group Sarl, Lebanese Arak Corporation.

RECENT HAPPENINGS MARKET

• The head of Iran's Atomic Energy Organization, Ali Akbar Salehi, confirmed about the restart of operations at the Arak heavy-water nuclear reactor.

MARKET SEGMENTATION

This research report on the global arak market has been segmented and sub-segmented based on by source type, application & region.

By Source Type

• Obeidi or Merwah Grapes

• Anise Seeds.

By Distribution Channel

• Supermarkets
• Travel Retails
• Liquor Shop
• Bar/Pub

By Region

• North America
• Europe
• The Asia Pacific
• Latin America
• Middle East and Africa