United Arab Emirates: Wine Market 2023

Wine Market Size in the United Arab Emirates

The wine market in the United Arab Emirates skyrocketed to $X in 2022, increasing by 22% against the previous year. Overall, consumption continues to indicate strong growth. Over the period under review, the market hit record highs at $X in 2019; however, from 2020 to 2022, consumption failed to regain momentum.

Wine Production in the United Arab Emirates

In value terms, wine production expanded sharply to $X in 2022 estimated in export price. Over the period under review, production recorded a relatively flat trend pattern. The pace of growth was the most pronounced in 2015 with an increase of 37% against the previous year. Wine production peaked at $X in 2020; however, from 2021 to 2022, production remained at a lower figure.

Wine Exports

Exports from the United Arab Emirates

In 2022, the amount of wine and grape must exported from the United Arab Emirates shrank sharply to X litres, falling by -70.1% compared with the previous year's figure. Overall, exports showed a abrupt shrinkage. The pace of growth was the most pronounced in 2021 when exports increased by 127%. Over the period under review, the exports attained the peak figure at X litres in 2013; however, from 2014 to 2022, the exports failed to regain momentum.

In value terms, wine exports fell notably to $X in 2022. Over the period under review, exports showed a perceptible curtailment. The pace of growth was the most pronounced in 2013 when exports increased by 95% against the previous year. Over the period under review, the exports attained the peak figure at $X in 2019; however, from 2020 to 2022, the exports failed to regain momentum.

Exports by Country

Tanzania (X litres) was the main destination for wine exports from the United Arab Emirates, with a 25% share of total exports. Moreover, wine exports to Tanzania exceeded the volume sent to the second major destination, Rwanda (X litres), fourfold. India (X litres) ranked third in terms of total exports with a 4.9% share.

From 2012 to 2022, the average annual growth rate of volume to Tanzania was relatively modest. Exports to the other major destinations recorded the following average annual rates of exports growth: Rwanda (+0.0% per year) and India (-8.4% per year).

In value terms, Hong Kong SAR ($X), India ($X) and Rwanda ($X) were the largest markets for wine exported from the United Arab Emirates worldwide, together accounting for 29% of total exports. These countries were followed by Tanzania, Ireland, Belgium and Jordan, which together accounted for a further 9%.

Among the main countries of destination, Belgium, with a CAGR of +210.9%, saw the highest growth rate of the value of exports, over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

The average wine export price stood at $X per litre in 2022, growing by 12% against the previous year. Overall, the export price recorded slight growth. The most prominent rate of growth was recorded in 2019 an increase of 55%. As a result, the export price attained the peak level of $X per litre. From 2020 to 2022, the average export prices remained at a somewhat lower figure.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was Hong Kong SAR ($X per litre), while the average price for exports to Tanzania ($X per litre) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Belgium (+18.8%), while the prices for the other major destinations experienced more modest paces of growth.

Wine Imports

Imports into the United Arab Emirates

Wine imports into the United Arab Emirates stood at X litres in 2022, with an increase of 6.4% compared with 2021. Over the period under review, imports recorded a prominent increase. The pace of growth was the most pronounced in 2019 with an increase of 49%. As a result, imports reached the peak of X litres. From 2020 to 2022, the growth of imports failed to regain momentum.

In value terms, wine imports skyrocketed to $X in 2022. In general, imports continue to indicate a buoyant expansion. The pace of growth was the most pronounced in 2021 when imports increased by 61%. Imports peaked in 2022 and are likely to continue growth in the near future.

Imports by Country

France (X litres), South Africa (X litres) and Italy (X litres) were the main suppliers of wine imports to the United Arab Emirates, with a combined 20% share of total imports. Australia, Spain, Chile and the UK lagged somewhat behind, together comprising a further 8.9%.

From 2012 to 2022, the biggest increases were recorded for Spain (with a CAGR of +11.8%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, France ($X) constituted the largest supplier of wine and grape must to the United Arab Emirates, comprising 16% of total imports. The second position in the ranking was held by Italy ($X), with a 2.8% share of total imports. It was followed by South Africa, with a 2.2% share.

From 2012 to 2022, the average annual rate of growth in terms of value from France totaled +2.1%. The remaining supplying countries recorded the following average annual rates of imports growth: Italy (+6.7% per year) and South Africa (+5.1% per year).

Import Prices by Country

The average wine import price stood at $X per litre in 2022, surging by 14% against the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +3.3%. The most prominent rate of growth was recorded in 2020 when the average import price increased by 17% against the previous year. The import price peaked in 2022 and is likely to see gradual growth in the immediate term.

There were significant differences in the average prices amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was France ($X per litre), while the price for South Africa ($X per litre) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Australia (+6.9%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform

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