Dubai's Thirst for Non-Alcoholic Beverages

Growing Demand for Non-Alcoholic Beverages: New Trends in Dubai

In the United Arab Emirates (UAE), non-alcoholic drinks are becoming increasingly popular, and this trend is transforming not only the local market but also the global beverage industry. The non-alcoholic beer market is showing an annual growth of 3.80%, and it is expected to reach a revenue of 94.6 million dollars by 2025. This change is not unique to the UAE; worldwide, more people are opting for "dry" alternatives, whether for health reasons, religious beliefs, or simply the intention to reduce alcohol consumption.

What's driving the popularity of non-alcoholic beverages?

The rise in demand for non-alcoholic beverages can be attributed to several factors. Firstly, younger generations, such as Millennials and Gen Z, are increasingly health-conscious and avoid alcohol. Secondly, global economic changes, such as inflation, are also contributing to people spending less on alcoholic beverages. Additionally, religious and cultural customs play a significant role, especially in countries like the UAE where alcohol consumption is restricted.

Statistics also support this trend. In 2023, the global market for alcoholic beverages showed a 0.2% decline, while some major alcohol producers, like Diageo, registered a 56% increase in their non-alcoholic portfolio. This clearly indicates that the beverage industry is increasingly gravitating towards non-alcoholic products.

Development of the local market in Dubai

In Dubai, the non-alcoholic beverage market is rapidly expanding. When the Drink Dry business, which sells 0.0% beverages, started, there were few options for non-alcoholic drinks. The founder of the business was initially uncertain about success, but it quickly became apparent that demand far exceeded expectations. Products sold out quickly, requiring additional shipments. This story illustrates just how much demand for non-alcoholic beverages has grown in the UAE.

According to Statista Market Insights, the non-alcoholic beer market in Dubai is growing at an annual rate of 3.80% and is expected to reach a revenue of 94.6 million dollars by 2025. This growth creates opportunities not only for international brands but also for local businesses.

Local innovations: The story of Majlis Craft Arabian Ale

Among local businesses, Majlis Craft Arabian Ale stands out, drawing inspiration from the region's history. According to the founder, fermented beverages were made on the Arabian Peninsula over 10,000 years ago, accidentally created during bread-making. Due to the hot weather, the bread fermented, and the resulting liquid was reused. This beverage was not only tasty but also had health benefits, such as aiding digestion.

Majlis decided to make alcohol-free beers right from the start, deviating from traditional methods. This process is more time-consuming and costly, but the end product stands out in the market. According to the founder, in beer-making, the quality of the malt, rather than the taste, is paramount.

International interest and new opportunities

The UAE is an attractive market not only for local businesses but also for international companies. For instance, United Dutch Brewery introduced the non-alcoholic malt beverage "3 Horses" to the UAE over 30 years ago and remains successful in the market. Similarly, European company TCB Beverages plans to enter the Dubai market, seeing a perfect opportunity for distributing non-alcoholic beverages.

What to expect in the future?

The increasing demand for non-alcoholic beverages is a clear global trend, and the UAE is no exception. Younger generations, health consciousness, and cultural customs collectively contribute to more people choosing these products. The local and international companies have a great opportunity to expand their market and introduce new products.

In Dubai, the non-alcoholic beverage market is continuously developing, and all indications are that this trend will strengthen in the coming years. Whether for health reasons or religious conviction, more people are choosing "dry" alternatives, which is transforming not just the beverage industry but also social customs.