Oman wine market report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

Oman Wine Market Overview

• The Oman Wine Market is valued at USD 3 million, based on a five-year historical analysis. This market size reflects a contraction in recent years, influenced by regulatory changes and shifts in import volumes, but overall growth has been supported by increasing tourism, evolving consumer preferences, and a gradual shift in cultural attitudes towards wine consumption. Both local production and imports serve a diverse consumer base, including expatriates and tourists .
• Muscat, the capital city, remains the dominant market for wine in Oman due to its role as a cultural and economic center. Salalah and Sohar have also experienced growth in wine consumption, largely driven by tourism and the presence of international hotels and restaurants. The increasing number of wine-related events and festivals in these cities further enhances their market significance .
• The Omani government regulates the sale and consumption of alcohol through the Royal Decree No. 7/1974 (Penal Law), as amended, and the Ministry of Tourism’s licensing requirements for establishments serving alcohol. These regulations include mandatory licensing, restrictions on advertising, and operational standards for outlets, aiming to ensure responsible consumption and public health while accommodating the growing demand for wine .

Oman Wine Market Segmentation

By Type:The wine market in Oman is segmented into Still Red Wine, Still White Wine, Still Rosé Wine, Sparkling Wine, Fortified Wine, Organic Wine, and Non-Alcoholic Wine. Still Red Wine and Still White Wine are the most popular, reflecting consumer preferences and the broad availability of these categories. Demand for Organic Wine is increasing as health-conscious consumers seek natural and sustainably produced options .

By End-User:The end-user segmentation of the wine market includes Retail Consumers, Restaurants and Bars, Hotels and Resorts, and Events and Catering Services. Retail Consumers account for the largest share, supported by the increasing availability of wine in supermarkets and specialty outlets. The trend of home consumption and social gatherings continues to drive demand in this segment .

Oman Wine Market Competitive Landscape

The Oman Wine Market is characterized by a dynamic mix of regional and international players. Leading participants such as Oman Wine Company, Al Jazeera International, Oman Vineyards LLC, Muscat Wine Traders, Dhofar Wines, Al Harthy Wines, Oman Beverage Company, Al Mandoos Wines, Muscat Alcool, Oman Wine Importers, Al Batinah Wines, Salalah Wine Co., Sohar Wine Distributors, Nizwa Wine Traders, and Al Dakhiliyah Wines contribute to innovation, geographic expansion, and service delivery in this space.

Oman Wine Market Industry Analysis

Growth Drivers

• Increasing Tourism and Expatriate Population:Oman welcomed approximately 4 million tourists in future, a significant increase from previous years, driven by its rich cultural heritage and natural beauty. The expatriate population, which constitutes about 30% of the total population, also contributes to the demand for wine. This influx of diverse cultures fosters a growing interest in wine consumption, particularly among tourists and expatriates who seek familiar products, thus driving market growth.
• Rising Disposable Incomes:The average disposable income in Oman is projected to reach OMR 1,800 (approximately USD 4,700) per capita in future, reflecting a steady increase in consumer purchasing power. As disposable incomes rise, consumers are more inclined to spend on premium products, including wine. This trend is particularly evident among the younger demographic, who are increasingly willing to explore and invest in wine culture, further propelling market growth.
• Expansion of Retail and Online Sales Channels:The retail landscape in Oman is evolving, with over 250 new retail outlets opening in future, including specialized wine shops and supermarkets. Additionally, online sales of wine have surged, with e-commerce platforms reporting a 50% increase in wine sales year-on-year. This expansion in both physical and digital retail channels enhances accessibility for consumers, thereby stimulating demand and contributing to the overall growth of the wine market.

Market Challenges

• Strict Regulations on Alcohol Sales:Oman has stringent regulations governing the sale of alcohol, including a licensing system that limits the number of retailers. As of future, only 15 licensed establishments are permitted to sell wine, creating significant barriers for new entrants. These regulations restrict market access and can hinder growth, as potential consumers may find it challenging to purchase wine legally and conveniently.
• Cultural Resistance to Alcohol Consumption:Despite the growing interest in wine, cultural attitudes towards alcohol consumption remain conservative in Oman. Approximately 75% of the local population adheres to Islamic principles, which discourage alcohol use. This cultural resistance poses a challenge for market penetration, as it limits the potential customer base and may deter international brands from investing in the Omani wine market.

Oman Wine Market Future Outlook

The Oman wine market is poised for gradual growth, driven by increasing tourism and a rising expatriate population. As disposable incomes continue to rise, consumers are likely to seek premium wine options, enhancing market dynamics. Additionally, the expansion of retail and online sales channels will improve accessibility. However, the market must navigate strict regulations and cultural resistance. Overall, the future of the Oman wine market appears promising, with opportunities for growth in niche segments and international collaborations.

Market Opportunities

• Development of Local Vineyards:There is significant potential for establishing local vineyards in Oman, particularly in regions with suitable climates. With government support, local production could reduce import dependency and cater to the growing demand for unique, locally-produced wines, enhancing the market's sustainability and appeal.
• Increasing Demand for Premium Wines:The trend towards premiumization is evident, with consumers increasingly willing to pay for high-quality wines. This shift presents an opportunity for both local and international brands to introduce premium offerings, tapping into the affluent consumer segment and enhancing brand loyalty in the Omani market.