According to a new report by Univdatos, the MENA Canned Wine Market is expected to reach around USD 271.88 Million in 2032 by growing at a CAGR of 4.5%.
The global beverage industry has undergone changes in the recent past with canned wine being among the latest products one can find in the market. Born as a convenience product in Western countries across the globe, canned wines have slowly and steadily entered the Middle Eastern and North African (MENA) market. This is due to the shifting customer profile, increased numbers of expatriates, and the ever-changing social and cultural reality of the region.
Canned Wine Demand In the Region:
The use of canned wine is still a novelty within the MENA region; however, the trend is quickly picking up steam. Several reasons could have led to this increased attention to the issue. To start with, it is evident that consumers are moving towards sizes that they can carry easily. However, the advancement of canned wine is a single-serving product that comes in a can and is more convenient than a glass bottle especially during outdoor activities, traveling, and informal occasions.
Secondly, the necessary population of expatriates in the MENA region, especially with a focus on the UAE, Qatar, and Bahrain, plays a crucial role in creating the demand. This is common because the expatriates come from other countries with different cultural tastes and trends in some cases they import some of those trends for instance canned wine. Therefore, the position of the retailers and hospitality providers is to diversify their stock and create more options with canned wine.
Also, the young generation in MENA is more ready to take risks on new products and trends, unlike their counterparts in other regions. These young people cannot compromise on convenience, innovation, and sustainability and these are factors that resonate with canned wine. Another factor that ensures the increase in the uptake of canned wine in the region includes the increase in the use of social media and the internet in creating awareness of trends around the world.
Cost Consideration:
The following are the main drivers that affect the cost structures of canned wine in the MENA region: Cost of importation is a significant factor that affects canned wine and this is because mostly they are imported from Europe hence the import duties are high. This is because tax and import duties on alcoholic beverages vary, with some of the countries in the MENA region imposing relatively high taxes that can influence the price that a canned wine is sold for upon arrival in a particular country. For example, in some of the GCC countries, the import taxes on alcohol get to as high as 50 percent so then canned wine becomes relatively costly when imported.
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Another factor that may affect the costs is that the cans with wine are produced locally, while other components may come from different locations. Currently, breweries and companies that deal with alcoholic beverages, especially in regions such as Europe, the US, and Australia, have started developing canned wine thus meaning that prices choked with importing the wine from other regions might likely drop. It would also coincide well with attempts to deindustrialize economies and enhance the potential for domestic manufacturing industries
Manufacturing
In the production of canned wine, there are crucial and intermediary stages like sourcing quality grapes, practical vinification, canning, and quality checks. This begins with sourcing appropriate grapes from vines; then proceeds with vinication where alcohol is created through a process of fermentation with the grape pulp. After that, the wine is filtered and stabilized before moving to render cans.
Canning wine is a somewhat complex undertaking that must have adequate apparatus to guarantee that the wine is canned in the right manner to meet preserved tastes. Concerning the preservation of wines, the canning process should not grant access to oxygen, which degrades the wine. Some of the techniques in canning that one sees in today’s process include the use of nitrogen to expel the oxidizing oxygen in the cans and properly aseptic sealing so that it retains the wines in the best conditions.
This is because it becomes very difficult to make sure that the quality of the canned wine is up to standard, especially if multiple cans are being produced at once. This consists of a routine examination of acidity as well as alcohol content and many other chemical analyses to check stability and purity. Several considerations go into the above, including how appropriately designed and labeled can ensure canned wine stands out in the market.
Recent Developments/Awareness Programs:- Several key players and governments are rapidly adopting strategic alliances, such as partnerships, or awareness programs for the treatment:-
· In 2023, CityDrinks, an alcohol delivery app based in Abu Dhabi, announced the launch of its operations in the emirate following the legalization of alcohol delivery in the UAE. The launch of CityDrinks comes after the UAE government recently passed a law allowing the delivery of alcoholic beverages to customers' homes. This move is expected to boost the alcohol industry in the country, which has been growing steadily in recent years.
· Brown-Forman Global Travel Retail and Emirates Leisure Retail unveiled the new-look Jack's Bar & Grill at Dubai International Airport in 2022
Conclusion
The canned wine market in the MENA region is poised for growth, driven by changing consumer preferences, a sizable expatriate population, and the appeal of convenience and sustainability. While there are cost challenges associated with import duties, the potential for local production could mitigate these issues and make canned wine more accessible to a broader audience.
As the market matures, we can expect to see more variety in canned wine offerings, including different grape varieties and blends, catering to diverse tastes and preferences. The adoption of advanced manufacturing techniques will ensure that the quality of canned wine meets consumer expectations, further solidifying its place in the regional beverage market.
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