Saudi Arabia Wine Market Size and Share Analysis - Growth Trends and Forecast Report 2025-2033

Saudi Arabia Wine Industry Overview

The distinctive sociocultural environment of Saudi Arabia, where alcohol use is severely forbidden by law for religious reasons, has a significant impact on the country's wine sector. Despite this, there has been a discernible change in consumer behavior and an increase in interest in non-alcoholic substitutes, such alcohol-free wines, which are becoming more and more well-liked, especially among foreign tourists and expats. Investments in the hospitality and luxury goods industries have surged as a result of Saudi Arabia's Vision 2030, which aims to diversify the economy. Non-alcoholic wine and beverage products have entered the market as a result of the expansion of upscale dining establishments, opulent hotels, and international events.

A growing desire for high-end, imported, and non-alcoholic wine alternatives is another effect of shifting consumer preferences brought on by the growth of tourism and the changing expat population. As a result, a number of businesses have started bringing in non-alcoholic wine, which is promoted as a chic substitute for people who want to enjoy wine without breaking any local regulations. These goods meet the rising desire for healthy, alcohol-free options and are frequently made using complex fermentation techniques. Although the market is still small and highly controlled, Saudi Arabia's wine business is expected to expand due to its aspirational goals of global integration and economic diversification, especially in the non-alcoholic and luxury beverage sectors.

After a 70-year break, Saudi Arabia reopened its wine shop in Riyadh in January 2024, catering only to a group of foreign ambassadors and high-end merchants. By providing upscale wine selections, exquisite tastings, and individualized services, it serves the diplomatic community and fosters luxury living and cross-cultural interaction.

Growth Drivers for the Saudi Arabia Wine Market

Vision 2030 Economic Diversification

The Vision 2030 plan of Saudi Arabia seeks to diversify the economy and lessen the nation's dependency on oil. Significant investments are being made in non-oil industries like tourism, entertainment, and hospitality as a result of this program. Demand for high-end goods, such as non-alcoholic wines, has increased as a result of the nation's increased emphasis on building upscale hotels, resorts, and dining establishments. Sophisticated beverage options that appeal to both visitors and expats are becoming more and more necessary as international events like concerts, athletic competitions, and festivals gain popularity. By providing a sophisticated drinking experience without going against cultural norms and establishing Saudi Arabia as a center for luxury and contemporary hospitality, non-alcoholic wine is emerging as a crucial product in satisfying this desire.

Rising Demand for Non-Alcoholic Alternatives

The demand for non-alcoholic beverages, especially alternatives to wine, is rising in the Saudi market. This increased demand is a result of shifting consumer tastes, especially among health-conscious people and expatriates. Due to ongoing cultural and religious prohibitions on alcohol use, many consumers are looking for sophisticated substitutes that mimic the wine experience without the alcohol. Since they provide a high-end drinking experience without sacrificing flavor or quality, non-alcoholic wines are seen as a sophisticated option for social events. The demand for alcohol-free wine options is being driven by the growing emphasis on moderation, health, and wellness as well as more exposure to international food and drink trends.

Growth of Tourism

Saudi Arabia's ambitious Vision 2030 has fueled the country's tourism industry expansion, which has increased demand for high-end drinks, such as non-alcoholic wines. The hospitality industry is expanding to accommodate a wider range of interests and preferences as foreign tourists swarm the nation for entertainment, cultural events, and opulent experiences. In keeping with local cultural standards, non-alcoholic wine offers travelers who want to sample great wine without alcohol a refined drinking alternative. Such options are becoming more and more necessary to satisfy the demands of tourists from around the world as upscale hotels and resorts, as well as major events like the Riyadh Season, grow in popularity. Non-alcoholic wines are becoming more widely available and well-liked in the market as a result of this expanding travel trend.

Challenges in the Saudi Arabia Wine Market

Strict Alcohol Laws

Saudi Arabia's severe alcohol ban, which is based on cultural and religious beliefs, has an immediate effect on the country's traditional wine business. The sale, acquisition, and consumption of alcohol are prohibited by Sharia law, which significantly limits the expansion of the wine and alcoholic beverage industries. For foreign wine brands and businesses looking to break into the market, this poses a significant obstacle. Opportunities for expansion in the wine industry are constrained by the lack of infrastructure that is conducive to alcohol consumption and the strong cultural opposition to alcohol, despite the growing demand for non-alcoholic beverages. Because of this, there is no market for alcoholic wines, and companies must carefully manage these legal constraints by concentrating on alcohol-free substitutes that abide by regional customs and regulations.

Limited Market Acceptance

Although non-alcoholic wines are becoming more and more popular, it is still quite difficult to get them recognized and accepted in Saudi Arabia. Due to cultural customs and religious beliefs, many residents may still consider non-alcoholic wine to be an unnecessary luxury or a strange idea. Although foreigners and health-conscious people are more likely to explore alcohol-free options, the market as a whole is still quite small. The adoption of non-alcoholic wines is made more difficult by the lack of a robust wine culture and the inclination for conventional beverages like tea and coffee. Furthermore, the product's wider popularity is hampered by a lack of knowledge and instruction. Businesses must use focused marketing techniques and public awareness initiatives to inform customers and position non-alcoholic wine as a competitive alternative if they want to prosper.

Saudi Arabia Wine Market Overview by Regions

By Region, the Saudi Arabia Wine market is divided into Western Region, Northern & Central Region, Eastern Region, Southern Region.

Eastern Saudi Arabia Wine Market

The economic development of the region, which includes developing infrastructure, more tourists, and an increasing number of expatriates, has an impact on the wine market in Eastern Saudi Arabia. Although alcohol is still illegal in the area, demand for non-alcoholic substitutes, such as alcohol-free wines, is steadily rising, particularly among foreign tourists and expats. There may be a niche market for these goods in places like Dammam, Khobar, and Jubail, which are home to many international professionals and laborers. Eastern Saudi Arabia's luxury and hospitality industries are also changing, with high-end lodging facilities and eateries investigating non-alcoholic drinks to appeal to both domestic and foreign clients. Making non-alcoholic wines popular and mainstream in the area is still difficult, though, due to cultural and legal restrictions.

Western Saudi Arabia Wine Market

The flourishing tourism industry in the region, especially in places like Jeddah and Mecca that draw large numbers of foreign tourists and expats, shapes the wine market in Western Saudi Arabia. Despite the fact that alcohol is still illegal, the diverse population is driving up demand for non-alcoholic drinks, such as wines without alcohol. A major market for high-end non-alcoholic wine substitutes at posh hotels, eateries, and cafes is Jeddah, which is renowned for its multicultural atmosphere. Non-alcoholic wine products will have more prospects in the Western region as a result of Saudi Arabia's Vision 2030, which calls for economic diversification and more tourism. Strict laws and cultural hurdles, however, still prevent wine substitutes from becoming widely accepted in the market.

Saudi Arabia Wine Market Segments

Product Type

1. Still Wine
2. Sparkling Wine
3. Dessert Wine
4. Fortified Wine
5. Other

Colors

1. Red Wine
2. Rose Wine
3. White Wine
4. Other

Distribution Channel

1. Online
2. Offline

Region

1. Northern and Central Region
2. Western Region
3. Eastern Region
4. Southern Region

Key Players Analysis

1. Accolade Wines
2. Alko
3. Allagash Brewing Company
4. Allied Blenders & Distillers
5. Arkell’s Brewery
6. Anchor Brewing Company
7. Asahi Breweries
8. Bass Brewery
    

Key Questions Answered in Report:

1.         How big is the Saudi Arabia Wine industry?

The Saudi Arabia Wine market size was valued at US$ 4.60 billion in 2024 and is expected to reach US$ 7.90 billion in 2033.

2.         What is the Saudi Arabia Wine growth rate?

The Saudi Arabia Wine market is expected to expand at a compound annual growth rate (CAGR) of 6.20% from 2025 to 2033.

3.         Who are the key players in Saudi Arabia Wine industry?

Some key players operating in the Saudi Arabia Wine market includes Accolade Wines, Alko, Allagash Brewing Company, Allied Blenders & Distillers, Arkell’s Brewery, Anchor Brewing Company, Asahi Breweries, Bass Brewery.

4.         What are the factors driving the Saudi Arabia Wine industry?

The growing demand for luxury goods, the expansion of tourism, the growing number of expatriates, and changing consumer tastes in high-end beverages all have an impact on the Saudi wine sector.

5.         What segments are covered in the Saudi Arabia Wine Market report?

Product Type, Colors, Distribution Channel, and Region segment are covered in this report.

Report Details: