Saudi Arabia Whiskey Market Set to Surpass $1.5 Billion by 2033 Amid Growing Expat Demand and Premium Trends

Saudi Arabia Whiskey Market: An Overview

According to Renub Research Latest Report Saudi Arabia whiskey market is projected to reach US$ 1,515.88 million by 2033, up from US$ 985 million in 2024, growing at a CAGR of 4.90% from 2025 to 2033. The market’s expansion is driven by rising demand for luxury goods, the rapid growth of the travel and hospitality industry, and shifting consumer preferences for international alcoholic beverages, especially among expatriates and affluent locals.

Saudi Arabia’s whiskey market is unique due to the country’s strict Islamic laws, which prohibit the production, sale, and consumption of alcohol. Despite these legal constraints, demand persists, primarily through black-market channels, fueled by a growing expat population, increasing disposable incomes, and the influence of global lifestyle trends. Wealthy residents and visitors often seek high-end imported spirits, positioning whiskey as a coveted luxury product in an otherwise restricted environment.

With the government’s Vision 2030 reforms gradually easing social restrictions and expanding tourism, the appetite for luxury experiences—including international beverages—is slowly rising. Events such as the Saudi Food Show in Riyadh, which showcases over 1,000 exhibitors from 97 countries, indicate a growing interest in high-end culinary and beverage products, including premium non-alcoholic and artisanal spirits, catering to younger consumers seeking upscale experiences.

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Growth Drivers

Changing Consumer Preferences

Saudi Arabian consumers are increasingly exposed to global drinking culture, influenced by social media, travel, and international media. By 2024, over 35 million Saudi citizens—about 94% of the population—had active social media accounts, exposing them to global trends. Younger, globally connected consumers are showing rising curiosity for high-end alcoholic beverages, including whiskey, even though consumption remains largely underground.

For example, Constellation Brands noted in May 2024 that global cocktail culture is boosting demand for premium spirits in the Middle East, including Saudi Arabia. Companies are focusing on on-premise engagement in upscale venues, targeting the hospitality industry where luxury beverages are increasingly sought by foreign visitors.

Expansion of the Travel and Hospitality Industry

Saudi Arabia is making strategic investments in tourism and hospitality as part of its Vision 2030 economic diversification plan. The introduction of tourist visas and infrastructure improvements has positioned the Kingdom as a growing global travel destination. According to the UNWTO, Saudi Arabia led the G20 in tourism growth during the first seven months of 2024, recording a 73% increase in foreign arrivals, underscoring the rising demand for international luxury products, including whiskey, in high-end hotels, restaurants, and entertainment venues.

Demand for Premium Beverages

High-end alcoholic beverages are increasingly associated with luxury lifestyles in Saudi Arabia. Expatriates and wealthy locals exhibit strong preferences for rare, premium, and super-premium whiskey brands, reflecting the growing appeal of exclusive experiences. Despite formal restrictions, affluent consumers are willing to acquire high-end whiskey through unofficial channels, creating a small but expanding luxury market.

Market Challenges

Social and Cultural Norms

Islamic traditions strongly influence Saudi society, discouraging alcohol consumption. This cultural context limits public acceptance and awareness of whiskey, making the establishment of a formal, visible market challenging. With alcohol consumption considered socially inappropriate, consumer education about whiskey is minimal, restricting business opportunities and public engagement.

Lack of Legal Framework

Saudi Arabia’s prohibition of alcohol prevents the creation of a legal whiskey market. There are no laws governing importation, sale, or promotion, leaving the industry to operate covertly. The absence of regulatory support discourages investment and prevents the development of official channels for brand expansion. As a result, the whiskey market remains underground, serving a niche clientele without transparency in sales or consumption data.

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Market Segmentation

By Product Type

American Whiskey

Irish Whiskey

Scotch Whiskey

Canadian Whiskey

Others

By Quality

Premium

High-End Premium

Super Premium

By Distribution Channel

Online

Offline

By Region

Northern & Central Region

Western Region

Eastern Region

Southern Region

Regional Insights

Eastern Saudi Arabia

The Eastern Region has a relatively larger expat population and better access to black-market whiskey channels due to its economic development and proximity to international trade routes. Despite legal prohibitions, underground markets cater to wealthy residents and foreign visitors seeking premium whiskey. The region’s affluence drives subtle growth in the luxury spirits segment, particularly for imported whiskey brands.

Western Saudi Arabia

The Western Region, including Mecca and Jeddah, faces similar legal challenges. However, the influx of international tourists—particularly pilgrims and business travelers—creates latent demand for whiskey in upscale and private venues. The region’s cosmopolitan atmosphere, combined with wealthier clientele, positions it as a distinct niche market for premium spirits despite cultural restrictions.

Northern & Central Region and Southern Region

These regions exhibit limited market activity due to smaller expat populations and stricter adherence to cultural norms. Whiskey consumption is largely underground, serving a smaller segment of affluent consumers.

Industry Players and Competitive Landscape

Key companies operating in the Saudi Arabia whiskey market include:

Accolade Wines

Alko

Allagash Brewing Company

Allied Blenders & Distillers

Arkell’s Brewery

Anchor Brewing Company

Asahi Breweries

Bass Brewery

These players focus on high-end products and premium offerings, primarily targeting affluent expatriates and luxury hospitality venues. Due to regulatory limitations, the market operates mostly through private networks, and growth strategies center on catering to discreet, high-value consumers.

Future Outlook

The Saudi Arabia whiskey market, while operating under strict legal constraints, is poised for subtle expansion driven by:

Rising disposable incomes among wealthy locals and expatriates.

Shifting consumer behaviors influenced by global media, travel, and social networks.

Tourism growth, which increases demand in premium hotels, restaurants, and luxury venues.

Demand for high-end, unique experiences, supporting premium and super-premium whiskey consumption.

Although the market will remain largely underground due to cultural and legal restrictions, small, niche growth opportunities are emerging. The evolving hospitality sector, coupled with incremental social reforms under Vision 2030, suggests a gradual increase in demand for luxury spirits, including whiskey, over the coming decade.

As Saudi Arabia continues to diversify its economy and embrace international tourism, whiskey consumption is expected to reflect a blend of luxury, exclusivity, and expatriate influence, reinforcing the Kingdom’s small but high-value market segment. By 2033, the market is anticipated to reach $1.5 billion, with premium and high-end products dominating consumer preferences despite operational challenges.

Key Takeaways

The Saudi Arabia whiskey market is projected to grow from US$ 985 million in 2024 to US$ 1,515.88 million in 2033, at a CAGR of 4.9%.

Growth is driven by luxury demand, tourism, expatriate population, and global influences.

Regulatory and cultural barriers limit formal market expansion, keeping most sales underground.

Premium and super-premium whiskey dominates consumer preference, particularly among young, affluent, and globally connected individuals.

Key regions include Eastern and Western Saudi Arabia, catering mainly to expatriates, tourists, and wealthy locals.

Leading players focus on premium offerings and private networks to navigate legal and cultural constraints.

Despite restrictions, the Kingdom’s whiskey market presents a unique niche opportunity, combining luxury consumer behavior, expatriate demand, and premium beverage trends. This market underscores a growing interest in international luxury experiences, which, while covert, reflects evolving social norms and increasing global integration under Saudi Arabia’s Vision 2030.

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