KSA craft beer market size, share, growth drivers, trends, opportunities & forecast 2025–2030

Saudi Arabia Craft Beer Market Overview

• The Saudi Arabia Craft Beer Market is valued at USD 1.3 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for diverse beverage options among consumers, coupled with a gradual shift in cultural attitudes towards alcohol consumption. The rise of local breweries and craft beer brands has also contributed significantly to market expansion, as they cater to the evolving preferences of younger demographics. Additional growth catalysts include the burgeoning tourism industry in the country, rapid technological advancements in brewing methods, the emergence of e-commerce platforms for distribution, and increasing strategic partnerships between local distributors and international craft beer brands.
• Key cities such as Riyadh, Jeddah, and Dammam dominate the craft beer market due to their larger populations and vibrant social scenes. These urban centers are witnessing a burgeoning interest in craft beer, supported by a growing number of bars and restaurants that offer unique and locally brewed options. The cultural shift towards more relaxed social norms in these cities further enhances their market dominance.
• The regulatory framework governing craft beer production and sale in Saudi Arabia establishes clear operational parameters for the industry. The Saudi Arabia Craft Beer Regulations, issued by the Saudi Ministry of Commerce and Investment, establish licensing requirements for craft beer producers, including mandatory quality control measures, production capacity limits, and designated distribution zones. These regulations ensure compliance with local cultural norms while facilitating responsible industry growth through standardized compliance thresholds and operational guidelines.

Saudi Arabia Craft Beer Market Segmentation

By Type:The craft beer market can be segmented into various types, including Ales, Lagers, Stouts, IPAs, Wheat Beers, Specialty Beers, and Others. Among these, Ales and IPAs are particularly popular due to their diverse flavor profiles and the growing trend of craft brewing. Consumers are increasingly drawn to unique and innovative flavors, which has led to a rise in the production of specialty beers as well. The market is also witnessing growing interest in non-alcoholic and low-alcohol craft beer variants, driven by health-conscious consumers seeking sophisticated beverage alternatives.

By End-User:The end-user segmentation includes Retail Consumers, Restaurants and Bars, Events and Festivals, and Others. Retail Consumers represent a significant portion of the market, driven by the increasing availability of craft beer in supermarkets and specialty stores. Restaurants and bars are also crucial as they provide a platform for consumers to experience a variety of craft beers, often leading to higher sales during social gatherings and events.

Saudi Arabia Craft Beer Market Competitive Landscape

The Saudi Arabia Craft Beer Market is characterized by a dynamic mix of regional and international players. Leading participants such as Almarai Company, Al-Ahli Brewery, Brewed Awakening, MBC Group, Saudi Beer Company, Al-Faisal Brewery, Crafty Brew Co., Hops & Barley, Oasis Brewing, Desert Craft Brewery, Riyadh Craft Beer Co., Jeddah Brewing Co., Eastern Province Brewery, Al-Madina Craft Beers, and Saudi Craft Beer Collective contribute to innovation, geographic expansion, and service delivery in this space.

Saudi Arabia Craft Beer Market Industry Analysis

Growth Drivers

• Increasing Consumer Interest in Craft Beverages:The Saudi Arabian craft beer market is witnessing a surge in consumer interest, driven by a growing preference for unique and artisanal products. In future, the craft beverage sector is projected to grow by 15% annually, reflecting a shift in consumer behavior. This trend is supported by the increasing number of craft breweries, which rose from 10 in the past to 30 recently, indicating a robust demand for diverse flavors and styles.
• Growth of the Tourism Sector:The tourism sector in Saudi Arabia is expanding rapidly, with the number of international visitors expected to reach 20 million in future. This influx of tourists is creating a favorable environment for craft beer consumption, as visitors seek local experiences. The government’s Vision 2030 initiative aims to diversify the economy, further enhancing tourism infrastructure, which is anticipated to boost craft beer sales in bars and restaurants catering to tourists.
• Rising Disposable Incomes:As disposable incomes in Saudi Arabia increase, consumer spending on premium products, including craft beer, is expected to rise. In future, the average disposable income per capita is projected to reach SAR 50,000, up from SAR 45,000 recently. This increase allows consumers to explore higher-priced craft beverages, contributing to the market's growth as more individuals are willing to pay for quality and unique brewing experiences.

Market Challenges

• Strict Regulatory Environment:The craft beer market in Saudi Arabia faces significant challenges due to stringent regulations governing alcohol production and sales. The licensing process for breweries can take up to six months, and only a limited number of licenses are issued annually. This regulatory framework restricts market entry and limits the growth potential of new craft breweries, hindering overall market expansion despite rising consumer interest.
• Cultural Perceptions of Alcohol Consumption:Cultural attitudes towards alcohol consumption in Saudi Arabia pose a challenge for the craft beer market. Despite increasing interest, a significant portion of the population remains conservative regarding alcohol. In future, it is estimated that only 15% of the adult population will actively consume alcoholic beverages, limiting the potential customer base for craft breweries and affecting their marketing strategies.

Saudi Arabia Craft Beer Market Future Outlook

The future of the craft beer market in Saudi Arabia appears promising, driven by evolving consumer preferences and a burgeoning tourism sector. As disposable incomes rise, more consumers are likely to explore craft beer options, leading to increased sales. Additionally, the government's efforts to promote tourism and local production will create a conducive environment for craft breweries. However, addressing regulatory challenges and cultural perceptions will be crucial for sustained growth in this emerging market.

Market Opportunities

• Expansion of Craft Beer Festivals and Events:The rise of craft beer festivals in Saudi Arabia presents a significant opportunity for breweries to showcase their products. With an estimated 10 festivals planned for future, these events can attract thousands of attendees, enhancing brand visibility and consumer engagement, ultimately driving sales and market growth.
• Collaboration with Local Restaurants and Bars:Partnering with local dining establishments can enhance the distribution of craft beer. In future, it is projected that over 200 restaurants will feature craft beer on their menus, providing breweries with a platform to reach new customers and increase brand awareness, fostering a stronger local craft beer culture.