Arak Market Research Analysis Report 2020-2025:
Arak Market was at USD 14.59 billion in 2019 and is anticipated to reach over USD 16.41 billion by the end of the assessment period, registering a CAGR of 2.0% throughout the outlook period 2020-2025. 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 drink
Arak is a clear, colourless, unsweetened anise-flavoured 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. Arak is commonly served with mezza, which may include dozens of small traditional dishes. In general, arak drinkers prefer to consume it this way, rather than alone. It is also consumed with barbecues, along with garlic sauce.
Primary factors accounted for driving the market are increasing local demand for arak in various developed and developing countries, increasing trend of using arak as an ingredient in Cocktails, increasing disposable income, changing lifestyles. However, factors like strict regulations, health concerns due to long term use and increasing trend of other alcoholic beverages are restricting the growth of market.
Recent Developments
Arak Resources Ltd. acquired a 100% interest in two mineral holdings at Perron Lake, in the Northeast Athabasca Basin, in Northern Canada. The new holdings cover 2,573 hectares in the south-central part of the Lac Perron region, approximately 20 kilometers north of the basin contact point and the exploration pattern is shallow uranium mineralization hosted in the similar subsurface to Fission Uranium Corp.'s Patterson Lake deposit.
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 Drivers and Restraints:
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, addition of various flavors and ingredients, increased exports to others 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. 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.
Arak Market Detailed Segmentation Analysis:
The Global market for Arak is segmented based on Source Type and Distribution Channel. Based on Source Type – Obeidi or Merwah Grapes and Anise Seeds. Based on Distribution Channel – Supermarkets, Travel Retails, Liquor Shop, Bar/Pub and Others.
The Obeidi or merwah grape arak drink holds the major share in market while the anise seeds segment is expected to grow the fastest due to its increasing popularity. Based on distribution channel supermarkets hold the major share in the market while 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 presence of market leaders. Asia Pacific is expected to grow the fastest owing to its increasing disposable income and growing urban population
Impact of COVID-19 on Arak Market
Coronavirus is likely to continue its impact on the food industry and its supply chains for some time in future. Meeting short-term demands shouldn't be a major challenge for most companies in the food industry, but industry experts expressed a lack of clarity about the scope and extent of virus impact. Due to this uncertainty, the F&B sector experienced delays in the supply of products. The F&B culture that thrived in recent years will now have new challenges due to the coronavirus recession, such as preference for ordering food online.
Regional Analysis:
The global Arak market has been divided on the basis of geography into regions of North America, Asia Pacific, Europe, Latin America, and Middle East and Africa. 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 is 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 a 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 the considerable growth due to increased disposable income and urban population growth.
Leading Company
Lebanese Arak Corporation had the largest share of the Global Arak Market in terms of sales and revenue in 2019.
Key Players
Key players in the Global Arak Market include Domaine des Tourelles, Lebanese Fine Wines Ltd., Château Ksara, Haddad Distilleries, Eagle Distilleries Co., Kawar Arak, Abi Raad Group Sarl, and Lebanese Arak Corporation.
1.Introduction
1.1 Market Definition
1.2 Study Deliverables
1.3 Base Currency, Base Year and Forecast Periods
1.4 General Study Assumptions
2. Research Methodology
2.1 Introduction
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Econometric Modelling
2.2.4 Expert Validation
2.3 Analysis Design
2.4 Study Timeline
3. Overview
3.1 Executive Summary
3.2 Key Inferences
3.3 Epidemology
4. Drivers, Restraints, Opportunities, and Challenges Analysis (DROC)
4.1 Market Drivers
4.2 Market Restraints
4.3 Key Challenges
4.4 Current Opportunities in the Market
5. Market Segmentation
5.1 Source
5.1.1 Introduction
5.1.2 Obeidi or Merwah Grapes
5.1.3 Anise Seeds
5.1.4 Y-o-Y Growth Analysis, By Source
5.1.5 Market Attractiveness Analysis, By Source
5.1.6 Market Share Analysis, By Source
5.2 Distribution Channel
5.2.1 Introduction
5.2.2 Supermarkets
5.2.3 Travel Retails
5.2.4 Liquor Stores
5.2.5 Bar/Pub
5.2.6 Others
5.2.7 Y-o-Y Growth Analysis, By Distribution Channel
5.2.8 Market Attractiveness Analysis, By Distribution Channel
5.2.9 Market Share Analysis, By Distribution Channel
6. Geographical Analysis
6.1 Introduction
6.1.1 Regional Trends
6.1.2 Impact Analysis
6.1.3 Y-o-Y Growth Analysis
6.1.3.1 By Geographical Area
6.1.3.2 By Source
6.1.3.3 By Distribution Channel
6.1.4 Market Attractiveness Analysis
6.1.4.1 By Geographical Area
6.1.4.2 By Source
6.1.4.3 By Distribution Channel
6.1.5 Market Share Analysis
6.1.5.1 By Geographical Area
6.1.5.2 By Source
6.1.5.3 By Distribution Channel
6.2 North America
6.1.1 Introduction
6.1.2 United States
6.1.3 Canada
6.3 Europe
6.2.1 Introduction
6.2.2 U.K
6.2.3 Spain
6.2.4 Germany
6.2.5 Italy
6.2.6 France
6.4 Asia-Pacific
6.3.1 Introduction
6.3.2 China
6.3.3 India
6.3.4 Japan
6.3.5 Australia
6.3.6 South Korea
6.5 Latin America
6.4.1 Introduction
6.4.2 Brazil
6.4.3 Argentina
6.4.4 Mexico
6.4.5 Rest of Latin America
6.6 Middle East & Africa
6.5.1 Introduction
6.5.2 Middle-East
6.5.3 Africa
7.Strategic Analysis
7.1 PESTLE analysis
7.1.1 Political
7.1.2 Economic
7.1.3 Social
7.1.4 Technological
7.1.5 Legal
7.1.6 Environmental
7.2 Porter’s Five analysis
7.2.1 Bargaining Power of Suppliers
7.2.2 Bargaining Power of Consumers
7.2.3 Threat of New Entrants
7.2.4 Threat of Substitute Products and Services
7.2.5 Competitive Rivalry within the Industry
8.Market Leaders' Analysis
8.1 Abi Raad Group Sarl
8.1.1 Overview
8.1.2 Source Analysis
8.1.3 Financial analysis
8.1.4 Recent Developments
8.1.5 SWOT analysis
8.1.6 Analyst View
8.2 Kawar Arak
8.3 Lebanese Fine Wines
8.4 Haddad Distilleries
8.5 Eagle Distilleries
8.6 Chateau Ksara
8.7 Lebanese Arak Corporation
8.8 Domaine des Tourelles
9.Competitive Landscape
9.1 Market share analysis
9.2 Merger and Acquisition Analysis
9.3 Agreements, collaborations and Joint Ventures
9.4 New Product Launches
10.Market Outlook and Investment Opportunities
Appendix
a) List of Tables
b) List of Figures
