Saudi Arabia Wine Market Trends & Summary: A New Era of Alcohol-Free Luxury

Introduction: A Market Evolving Against Tradition

Saudi Arabia’s relationship with wine is unlike that of any other major economy in the world. In a country where alcohol consumption is strictly prohibited by law due to religious and cultural principles, the very idea of a “wine market” might seem contradictory. Yet, the reality on the ground in 2025 and beyond tells a far more nuanced story—one driven by non-alcoholic innovation, changing consumer lifestyles, ambitious economic reforms, and a rapidly globalizing hospitality sector.

According to Renub Research, the Saudi Arabia Wine Market is expected to grow from US$ 4.60 billion in 2024 to US$ 7.90 billion by 2033, registering a compound annual growth rate (CAGR) of 6.20% from 2025 to 2033. This growth is not about traditional alcoholic wine. Instead, it reflects the rise of non-alcoholic wine alternatives, premium beverage experiences, and lifestyle-driven consumption patterns aligned with the Kingdom’s Vision 2030.

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Several powerful forces are shaping this transformation: rising interest in alcohol-free wine substitutes, a growing expatriate population, the expansion of luxury dining and hospitality, evolving cultural norms, a booming tourism industry, increasing disposable incomes, and government initiatives encouraging food and beverage (F&B) innovation. Together, these factors are creating a unique and fast-evolving market that blends tradition with modernity.

Saudi Arabia Wine Industry Overview: A Market Defined by Innovation

The Saudi Arabia wine industry operates within a distinctive sociocultural and legal framework. Alcohol is strictly prohibited, and this reality has historically kept the country outside the global wine economy. However, in recent years, consumer behavior has begun to shift, especially among expatriates, international visitors, and younger, health-conscious consumers who are increasingly open to premium, alcohol-free alternatives.

Non-alcoholic wines—often produced using advanced fermentation and de-alcoholization techniques—have emerged as a sophisticated substitute. These products aim to replicate the taste, aroma, and experience of traditional wine without containing alcohol, making them compliant with local regulations and cultural expectations. For many consumers, they offer the best of both worlds: a refined, celebratory beverage experience without legal or religious conflict.

Saudi Arabia’s Vision 2030 has played a crucial role in accelerating this trend. The national strategy focuses on diversifying the economy away from oil and investing heavily in tourism, entertainment, hospitality, and luxury services. As a result, the Kingdom has seen a surge in high-end hotels, fine-dining restaurants, international events, and cultural festivals. These venues increasingly seek premium, alcohol-free beverage options that can match global standards of hospitality.

A symbolic moment came in January 2024, when Saudi Arabia reopened a controlled wine shop in Riyadh after a 70-year gap, serving only a limited group of foreign diplomats and high-end clients. While this does not signal a broad legalization of alcohol, it highlights a more nuanced and pragmatic approach to serving international communities and supporting luxury hospitality experiences.

Overall, while the market remains highly regulated and focused on non-alcoholic products, the Saudi Arabia wine sector is expected to grow steadily, driven by aspiration, globalization, and innovation in alcohol-free beverages.

Market Size and Growth Outlook

Renub Research estimates that the Saudi Arabia Wine Market will expand from US$ 4.60 billion in 2024 to US$ 7.90 billion by 2033, growing at a CAGR of 6.20% between 2025 and 2033. This growth trajectory reflects not only increasing demand for non-alcoholic wine alternatives but also broader trends in premiumization, health-conscious consumption, and lifestyle-driven spending.

Unlike traditional wine markets in Europe or the Americas, growth in Saudi Arabia is rooted in:

The expansion of luxury hospitality and tourism

Rising disposable incomes and premium consumer behavior

The influence of expatriates and international visitors

Innovation in alcohol-free and functional beverages

Government-backed economic diversification under Vision 2030

As these trends continue, non-alcoholic wines are expected to move from niche products to mainstream premium beverage options within the Kingdom’s high-end dining, hotel, and retail environments.

Key Growth Drivers in the Saudi Arabia Wine Market

1. Vision 2030 and Economic Diversification

Vision 2030 is the backbone of Saudi Arabia’s economic transformation. By reducing dependence on oil and investing in sectors such as tourism, entertainment, and hospitality, the government is reshaping consumer lifestyles and spending patterns. New luxury hotels, resorts, cultural districts, and entertainment hubs are being developed across the country, all of which require sophisticated food and beverage offerings.

In this environment, non-alcoholic wines serve as a premium, culturally acceptable option that aligns with international hospitality standards. They allow venues to offer a refined dining experience without violating local norms, making them a key product category in the evolving F&B landscape.

2. Rising Demand for Non-Alcoholic Alternatives

Globally, the demand for non-alcoholic and low-alcohol beverages is rising due to health, wellness, and moderation trends. In Saudi Arabia, this shift is even more pronounced due to legal and cultural restrictions on alcohol. Consumers—especially expatriates and health-conscious locals—are increasingly seeking beverages that offer complexity, flavor, and a sense of occasion without alcohol.

Non-alcoholic wines fit perfectly into this space. They are often positioned as premium, lifestyle-oriented products suitable for social gatherings, business dinners, and celebratory occasions. As awareness and availability increase, demand is expected to continue rising.

3. Growth of Tourism and International Events

Saudi Arabia’s tourism sector is expanding rapidly, driven by mega-projects, global sporting events, entertainment festivals, and cultural initiatives such as Riyadh Season. International visitors bring with them expectations of world-class hospitality, including premium beverage options.

Non-alcoholic wines provide a culturally appropriate solution for serving these guests. High-end hotels, resorts, and restaurants are increasingly incorporating alcohol-free wine alternatives into their menus to cater to global tastes while respecting local regulations.

Challenges Facing the Saudi Arabia Wine Market

1. Strict Alcohol Laws

The most significant challenge remains the strict legal prohibition of alcohol. This effectively eliminates any possibility of a conventional alcoholic wine market. Foreign brands and investors must navigate a complex regulatory environment and focus exclusively on alcohol-free products. While this creates a clear boundary, it also limits the scope of product offerings and requires careful compliance with local laws and cultural expectations.

2. Limited Market Acceptance

Despite growing interest, non-alcoholic wines still face cultural and perceptual barriers. Many consumers are more accustomed to traditional beverages such as tea, coffee, and juices. For some, non-alcoholic wine may still seem like an unnecessary or unfamiliar concept. Building broader acceptance will require education, marketing, and consistent exposure through hospitality and retail channels.

Regional Market Overview

By region, the Saudi Arabia Wine Market is segmented into the Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Eastern Region

Cities such as Dammam, Khobar, and Jubail are home to many expatriates and international professionals, particularly due to the energy and industrial sectors. This creates a niche but growing demand for premium non-alcoholic beverages, including wine alternatives. The region’s developing hospitality infrastructure and business travel activity support steady, though still limited, market growth.

Western Region

The Western Region, including Jeddah and areas near Mecca, is heavily influenced by tourism and international visitors. Jeddah, in particular, has a more cosmopolitan atmosphere and a strong presence of luxury hotels and fine-dining establishments. This makes it one of the most promising markets for high-end non-alcoholic wine alternatives, even as strict regulations and cultural considerations remain in place.

Market Segmentation

By Product Type:

Still Wine

Sparkling Wine

Dessert Wine

Fortified Wine

Other

By Color:

Red Wine

Rosé Wine

White Wine

Other

By Distribution Channel:

Online

Offline

By Region:

Northern and Central Region

Western Region

Eastern Region

Southern Region

This segmentation highlights the industry’s effort to mirror traditional wine categories within an alcohol-free framework, giving consumers familiar choices while staying compliant with regulations.

Key Players in the Market

Some of the notable companies operating in or associated with the broader wine and beverage space include:

Accolade Wines

Alko

Allagash Brewing Company

Allied Blenders & Distillers

Arkell’s Brewery

Anchor Brewing Company

Asahi Breweries

Bass Brewery

While not all of these companies operate directly in Saudi Arabia’s non-alcoholic wine segment, their global presence, product innovation capabilities, and brand strength influence the development of alcohol-free alternatives and premium beverage trends worldwide.

Competitive Landscape and Strategic Focus

The competitive landscape in Saudi Arabia’s wine market is shaped less by traditional rivalry and more by innovation, branding, and positioning. Success depends on:

Developing high-quality, great-tasting non-alcoholic wine alternatives

Positioning products as premium lifestyle beverages

Building strong relationships with hotels, restaurants, and upscale retailers

Educating consumers and normalizing alcohol-free wine in social settings

Brands that can combine quality, cultural sensitivity, and smart marketing are likely to gain a strong foothold in this evolving market.

Future Outlook: A Market of Controlled but Steady Growth

Looking ahead to 2033, the Saudi Arabia Wine Market is expected to continue its steady expansion, driven by tourism, hospitality, lifestyle changes, and Vision 2030 reforms. While the market will remain focused on non-alcoholic products, its premium and experiential nature will create attractive opportunities for innovative beverage companies.

As Saudi Arabia continues to open up to the world—economically, culturally, and socially—the demand for sophisticated, globally inspired, yet locally acceptable products will only increase. Non-alcoholic wine is well positioned to become a permanent and growing part of the Kingdom’s modern F&B landscape.

Final Thoughts

The Saudi Arabia Wine Market is a powerful example of how tradition and transformation can coexist. With a projected rise from US$ 4.60 billion in 2024 to US$ 7.90 billion by 2033 at a CAGR of 6.20%, the market’s growth story is not about alcohol—it is about innovation, lifestyle evolution, and premium experiences.

Driven by Vision 2030, tourism growth, and changing consumer preferences, non-alcoholic wines are carving out a unique and promising space in the Kingdom’s economy. While challenges remain, especially around cultural acceptance and regulation, the long-term outlook is clear: Saudi Arabia’s wine market, in its own distinctive form, is entering a new era of opportunity and global relevance.