Saudi Arabia Wine Market Size and Share Report with Forecast 2025–2033

Saudi Arabia Wine Market Overview

According to Renub Research Saudi Arabia wine market is evolving within a highly unique regulatory and cultural environment shaped by strict religious laws that prohibit the consumption of alcoholic beverages. Despite these constraints, the market is experiencing steady growth, driven almost entirely by the rising popularity of non-alcoholic wine alternatives. These products cater primarily to expatriates, international tourists, and health-conscious consumers seeking premium beverage experiences that align with local laws and cultural norms.

In 2024, the Saudi Arabia wine market was valued at US$ 4.60 billion and is expected to reach US$ 7.90 billion by 2033, growing at a compound annual growth rate (CAGR) of 6.20% during the forecast period from 2025 to 2033. Market expansion is supported by Saudi Arabia’s economic diversification strategy, a booming tourism sector, rising disposable income, and increased investment in luxury hospitality and fine dining experiences.

Saudi Arabia Wine Industry Outlook and Scope

The wine industry in Saudi Arabia differs fundamentally from global wine markets due to the prohibition of alcohol. As a result, the market is dominated by alcohol-free and non-alcoholic wine substitutes, which are produced using advanced fermentation and dealcoholization techniques to replicate the taste, aroma, and mouthfeel of traditional wines.

These products are positioned as premium lifestyle beverages rather than alcoholic drinks and are commonly served in high-end hotels, luxury restaurants, diplomatic settings, and private events catering to expatriates. The growth of international tourism, global culinary exposure, and luxury hospitality developments under Vision 2030 has created an emerging niche for sophisticated non-alcoholic wine products.

Although tightly regulated and limited in scope, the Saudi Arabia wine market is gradually gaining momentum as consumer perceptions evolve and demand for upscale, compliant beverage alternatives increases.

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Key Growth Drivers of the Saudi Arabia Wine Market

Vision 2030 and Economic Diversification

Saudi Arabia’s Vision 2030 initiative plays a central role in shaping the wine market landscape. The government’s objective to reduce dependence on oil revenue has led to significant investment in tourism, entertainment, hospitality, and lifestyle sectors. As luxury hotels, international restaurants, resorts, and event venues expand, demand has grown for premium non-alcoholic beverage offerings that match international service standards.

Non-alcoholic wine has emerged as a refined alternative that enhances fine dining and social experiences without violating cultural or religious norms. These products support Saudi Arabia’s ambition to position itself as a global luxury tourism destination while respecting local values.

Rising Demand for Non-Alcoholic Wine Alternatives

The increasing preference for non-alcoholic beverages is one of the most important drivers of market growth. Consumers in Saudi Arabia—particularly expatriates and younger, health-conscious individuals—are seeking sophisticated alternatives to traditional soft drinks.

Non-alcoholic wines offer the complexity and elegance of conventional wines without alcohol, making them suitable for formal occasions, business dinners, and social gatherings. The global wellness movement, which emphasizes moderation and healthier lifestyles, further supports this trend. Increased exposure to international food and beverage culture has also played a role in normalizing alcohol-free wine consumption.

Growth of Tourism and Luxury Hospitality

Saudi Arabia’s tourism sector is expanding rapidly as part of Vision 2030, with millions of international visitors expected annually. Major tourism initiatives, cultural festivals, sporting events, and entertainment seasons are transforming the hospitality landscape.

Luxury hotels, resorts, and fine-dining establishments are increasingly incorporating non-alcoholic wines into their beverage menus to meet international guest expectations. For tourists accustomed to wine culture, alcohol-free wine provides a familiar yet compliant option. As tourism continues to grow, demand for premium wine substitutes is expected to rise steadily.

Challenges in the Saudi Arabia Wine Market

Strict Alcohol Regulations

Saudi Arabia enforces one of the strictest alcohol bans in the world under Sharia law. The sale, production, import, and consumption of alcoholic beverages are prohibited, which eliminates any opportunity for a conventional alcoholic wine market.

These legal constraints significantly limit product variety, distribution channels, and marketing activities. Foreign wine producers must carefully navigate regulatory requirements and ensure full compliance by offering exclusively alcohol-free products. The absence of alcohol-serving venues also restricts broader market penetration.

Limited Consumer Awareness and Acceptance

Despite growing interest, non-alcoholic wine remains a niche category in Saudi Arabia. Many consumers still associate wine with alcohol and may perceive alcohol-free wine as unnecessary or unfamiliar. Traditional beverages such as tea, coffee, and fruit-based drinks continue to dominate consumption patterns.

Lack of awareness, limited product education, and minimal exposure outside luxury settings hinder mass-market adoption. Companies must invest in targeted marketing, product storytelling, and consumer education to position non-alcoholic wine as a premium lifestyle beverage rather than a novelty.

Saudi Arabia Wine Market by Product Type

Still Wine Segment

Non-alcoholic still wine represents the largest share of the Saudi market due to its versatility and widespread acceptance in fine dining environments. These wines are available in red, white, and rosé styles and are often paired with gourmet meals in luxury hotels and restaurants.

Sparkling Wine Segment

Non-alcoholic sparkling wines are gaining popularity for celebrations, corporate events, and hospitality settings. Their festive appeal and premium positioning make them suitable for weddings, diplomatic receptions, and upscale social gatherings.

Dessert and Fortified Wine Alternatives

Alcohol-free dessert and fortified wine substitutes serve a smaller but growing niche, particularly in high-end dining experiences. These products are often consumed with desserts or cheese and appeal to consumers seeking indulgent, sophisticated flavors.

Saudi Arabia Wine Market by Color

Red Wine Alternatives

Non-alcoholic red wines dominate the market due to their perceived health benefits, complex flavor profiles, and popularity among expatriates. They are commonly served in premium hospitality settings.

White and Rosé Wine Alternatives

White and rosé non-alcoholic wines are favored for lighter meals, warm climates, and casual dining experiences. Their refreshing characteristics align well with Saudi Arabia’s climate and modern dining trends.

Saudi Arabia Wine Market by Distribution Channel

Offline Distribution

Offline channels, including luxury hotels, fine-dining restaurants, specialty stores, and diplomatic venues, account for the majority of market sales. These controlled environments allow for curated product offerings and premium positioning.

Online Distribution

Online sales are gradually emerging as a distribution channel, supported by the growth of e-commerce and digital grocery platforms. However, online availability remains limited due to regulatory oversight and product awareness challenges.

Regional Analysis of the Saudi Arabia Wine Market

Western Region Wine Market

The Western region, particularly cities such as Jeddah, represents the most active market due to its cosmopolitan population and strong tourism industry. Luxury hotels and international restaurants drive demand for non-alcoholic wine substitutes.

Eastern Region Wine Market

The Eastern region benefits from a high concentration of expatriates and industrial development. Demand for non-alcoholic wines exists within upscale hospitality venues, although cultural and legal limitations continue to restrict broader adoption.

Northern and Central Region Wine Market

Riyadh and surrounding areas are witnessing gradual growth driven by government initiatives, diplomatic communities, and premium hospitality projects. The reopening of a restricted wine shop in Riyadh for diplomatic use reflects cautious market evolution.

Southern Region Wine Market

The Southern region remains a relatively small market due to lower tourism activity and conservative consumer behavior. Growth potential exists primarily within niche hospitality segments.

Saudi Arabia Wine Market Segmentation

By Product Type

·       Still Wine

·       Sparkling Wine

·       Dessert Wine

·       Fortified Wine

·       Others

By Color

·       Red Wine

·       Rosé Wine

·       White Wine

·       Others

By Distribution Channel

·       Online

·       Offline

By Region

·       Northern and Central Region

·       Western Region

·       Eastern Region

·       Southern Region

Competitive Landscape and Key Players

The Saudi Arabia wine market is highly specialized, with companies focusing on alcohol-free and premium beverage offerings. Key players emphasize compliance, quality, branding, and partnerships with luxury hospitality providers.

Key Companies Analyzed:

·       Accolade Wines

·       Alko

·       Allagash Brewing Company

·       Allied Blenders & Distillers

·       Arkell’s Brewery

·       Anchor Brewing Company

·       Asahi Breweries

·       Bass Brewery

Companies are evaluated based on overview, recent developments, and revenue performance.

Conclusion

The Saudi Arabia wine market is undergoing a gradual but meaningful transformation, driven by non-alcoholic wine substitutes that align with cultural, legal, and religious norms. Supported by Vision 2030, tourism growth, luxury hospitality expansion, and rising demand for premium alcohol-free beverages, the market is set for steady growth through 2033. While regulatory constraints and limited consumer awareness remain key challenges, targeted innovation, education, and premium positioning will continue to unlock opportunities in this distinctive and evolving market.