Alcoholic drinks in 2024: The big picture
Total volume sales of alcoholic drinks declined in Iraq in 2024. This was the second consecutive year of decline following the imposition of a ban on the sale, import or production of alcohol in central and southern Iraq early in 2023. The ban, which was originally approved by parliament in 2016, does not apply in the Kurdistan Region of Iraq (KRI), which is governed by the Kurdistan Regional Government (KRG). Also, despite the ban, alcoholic drinks continued to be sold via official retail channels and widely consumed in central and southern Iraq. Nonetheless, the KRI drove market growth at the end of the review period, absorbing demand and supply from other regions. Wine was the only category to see volume sales rise in 2024, as demand was already traditionally concentrated in the KRI. The ban and supply issues also fuelled price inflation, which is expected to slow down in the years ahead.
2024 key trends
Beer remains the largest category by volume, followed by spirits. These two categories saw decline in both 2023 and 2024, though they are expected to return to growth early in the forecast period. Wine, the only category to register volume growth at the end of the review period, is expected to remain the most dynamic over 2024-2029. For beer and spirits, less expensive brands perform better in central and southern Iraq, while high-end products face challenges. In contrast, wine enjoys stable consumption, with consumers willing to spend more, driving strong growth in on-trade consumption in 2024.
Competitive landscape
Beer brands dominate the alcoholic drinks market in Iraq in volume terms. In the beer category, brands like Efes, Tuborg, and Carlsberg, which are produced in Turkey, are gaining market share, while many other brands are losing out. The success of these brands is largely due to logistical advantages and proximity to the Iraqi market, allowing for better distribution and higher sales. Similarly, in the spirits category, Greek ouzo brands such as Ouzo 7 and Kefi, have maintained their dominance despite some market loss due to the influx of Lebanese brands. Still, ouzo remains a key spirit in the country.
Retail developments
Off-trade alcohol in Iraq is sold exclusively through specialist alcoholic drinks stores. These stores primarily focus on alcoholic drinks, but also offer limited options in areas such as cigarettes and select grocery items that are commonly consumed while drinking. Beyond this, no other distribution channels exist. There were no significant sales of alcoholic drinks via e-commerce at the end of the review period.
On-trade vs off-trade split
Overall, nearly 90% of alcohol consumption in Iraq occurs through off-trade outlets across all major categories. However, the dominance of the off-trade began to be eroded towards the end of the review period due to the Iraqi Government's alcohol ban in the centre and south of the country. This has resulted in many people travelling to the north, where they drink at on-trade venues and purchase alcohol to carry back home. Hence, there was a decline in off-trade, while on trade consumption saw growth in 2024.
What next for alcoholic drinks?
The alcohol drinks market is expected to stabilise in Iraq in the forecast period. With growth expected in both volume and value terms over 2024-2029. In 2025, the off-trade performance is expected to remain slightly negative, but the channel is expected to recover starting in 2026. On-trade growth is expected in both volume and value from 2025. By 2029, both off-trade and on-trade are expected to exceed the growth rates of 2025. Key drivers include shifting social structures and urbanisation, which boosts demand for alcohol-related services, attracting young, educated individuals with significant disposable income.
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Overview:
Understand the latest market trends and future growth opportunities for the Alcoholic Drinks industry in Iraq with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Beer
- Wine
- Spirits
- Cider and Perry
- RTDs
If you're in the Alcoholic Drinks industry in Iraq, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty
The Alcoholic Drinks in Iraq report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Alcoholic Drinks in Iraq?
- Where is consumer demand for Alcoholic Drinks focussed?
- Which is being consumed more; beer, wine or spirits?
- Where is demand growing? Stagnating?
- How is the operating environment for alcoholic drinks changing?
- Which are the leading brands in Iraq?
- How are products distributed in Iraq?
- What are the key trends in new product development?
- Do consumers want value for money or added value?
- How will macroeconomic context and shifting cultural values shape future growth?
- How will COVID-19 and recession impact the alcoholic drinks industry?
- Where is future growth expected to be most dynamic?
Alcoholic Drinks in Iraq
Alcoholic drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retail developments
On-trade vs off-trade split
What next for alcoholic drinks?
Legislation
Legal purchasing age and legal drinking age
Drink driving
Advertising
Smoking ban
Opening hours
On-trade establishments
Taxation and Duty Levies
Operating Environment
Contraband/parallel trade
Duty free
Cross-border/private imports
Key New Product Launches
DISCLAIMER
Key Data Findings
2024 Developments
Declining sales following imposition of ban
Leaders benefit from strong supply chains and widely recognised brands
Significant distribution challenges
Prospects and Opportunities
Potential for development of draught beer
Mindful drinking may weaken stigma
Few innovations expected due to policy instability
Category Data
Key Data Findings
2024 Developments
Wine less impacted by ban because of popularity in KRG
Market remains fragmented
Amateur wine emerging in KRG
Prospects and Opportunities
Further growth anticipated
Mindful drinking to influence demand for wine
Ongoing development of local production in KRG
Category Data
Key Data Findings
2024 Developments
Trend one
Diageo leads fragmented category
Distribution most structured in KRG
Prospects and Opportunities
Return to growth expected
More mindful approach to alcohol consumption
Uncertain market conditions militate against innovation
Category Data
2024 Developments
An insignificant category
Prospects and Opportunities
Little likelihood of category emergence
Category Data
2024 Developments
Limited and inconsistent availability
Limited product offer
Consumer base comprised mainly of young adults and women
Prospects and Opportunities
Category expected to remain insignificant
Little motivation for investment
Inconsistent availability to remain a problem
Category Data
The following categories and subcategories are included:
Alcoholic Drinks
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- Ale
- Sorghum
- Weissbier/Weizen/Wheat Beer
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- Flavoured/Mixed Lager
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- Domestic Premium Lager
- Imported Premium Lager
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- Domestic Mid-Priced Lager
- Imported Mid-Priced Lager
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- Domestic Economy Lager
- Imported Economy Lager
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-
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- Domestic Premium Lager
- Domestic Mid-Priced Lager
- Domestic Economy Lager
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- Imported Premium Lager
- Imported Mid-Priced Lager
- Imported Economy Lager
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- Low Alcohol Beer
- Non Alcoholic Beer
- Stout
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- Regular Cider/Perry
- Non Alcoholic Cider/Perry
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- Malt-based RTDs
- Spirit-based RTDs
- Wine-based RTDs
- Other RTDs
- Non Alcoholic RTDs
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- Brandy
- Cognac
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- Bitters
- Cream-based Liqueurs
- Other Liqueurs
- Non Alcoholic Spirits
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- Prestige Dark Rum
- Ultra Premium Dark Rum
- Super Premium Dark Rum
- Premium Dark Rum
- Standard Dark Rum
- Economy Dark Rum
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- Prestige White Rum
- Ultra Premium White Rum
- Super Premium White Rum
- Premium White Rum
- Standard White Rum
- Economy White Rum
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- Tequila (and Mezcal)
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- Bourbon/Other US Whiskey
- Canadian Whisky
- Irish Whiskey
- Japanese Whisky
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- Blended Malt Scotch Whisky
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- Prestige Other Blended Scotch Whisky
- Ultra Premium Other Blended Scotch Whisky
- Super Premium Other Blended Scotch Whisky
- Premium Other Blended Scotch Whisky
- Standard Other Blended Scotch Whisky
- Economy Other Blended Scotch Whisky
- Single Grain Scotch Whisky
- Single Malt Scotch Whisky
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- Other Whiskies
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- Prestige English Gin
- Ultra Premium English Gin
- Super Premium English Gin
- Premium English Gin
- Standard English Gin
- Economy English Gin
- Dutch Gin
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- Prestige Vodka
- Ultra Premium Vodka
- Super Premium Vodka
- Premium Vodka
- Standard Vodka
- Economy Vodka
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- Absinthe
- Ad-Mix Brandy
- Ad-Mix Gin
- Ad-Mix Rum
- Ad-Mix Vodka
- Ad-Mix Whisky
- Aguardente/Aguardiente
- Aguardiente De Caña
- Akvavit/Aquavit
- Aniseed-Flavoured Spirits
- Borovicka
- Boukha
- Brandy Type Distilled Spirits
- Cachaça
- Calvados
- Cane
- Chacha
- Charanda
- Chinese Herbal Spirits
- Chinese Spirits
- Cut Brandy
- Destilados De Agave
- Distilled Fruit Spirits
- Domestic Brandy
- Domestic Rum
- Doppelkorn
- Economy Chinese Spirits
- Flavoured Spirits
- Flavoured Vodka-based Drinks
- Fynbos gin/Local Gin
- Gin-flavoured spirits
- Goldbrand/Goldkrone
- Grappa
- Grappamiel
- Guaro
- Kirsch
- Komovica
- Korn
- Lambanog
- Limoncello
- Local White Spirits
- Lower Mid-Range Chinese Spirits
- Lozovaca
- Maesilju
- Mahia Rabi Amrane
- Mead
- Mixed Spirits
- Nalivka/Nalewka
- Nastoyka
- National Specialities
- Obstbrände
- Ouzo
- Pacharán
- Palinca/Pálinka
- Pear and Apple Distillates
- Pisco
- Premium Chinese Spirits
- Prune
- Punsch
- Rachiu/Rakija
- Rum-Flavoured Spirits
- Samane
- Sambuca
- Samsu
- Schnapps
- Shochu/Soju
- Singani
- Sljivovica/Slivovice
- Steinhäeger
- Strong African Spirits
- Super Premium Chinese Spirits
- Sura Khao
- Tequila Flavoured Spirits
- Travarica
- Tsipouro
- Upper Mid-Range Chinese Spirits
- Vieux
- Viina
- Vodka Type Distilled Spirits
- Other Distilled Beverages
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- Port
- Sherry
- Vermouth
- Other Fortified Wine
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- Apple Wine
- Bokbunjaju
- Cheongju
- Chinese Wine
- Economy Rice Wine
- Fortified Fruit Wine
- Fruit and Berry Wine
- Fruit and Herbal Wine
- Fruit and Honey based Wine
- Fruit Wine
- Lower Mid-Range Rice Wine
- Non-Grape Dessert Wine
- Premium Rice Wine
- Sake
- Takju
- Upper Mid-Range Rice Wine
- Yakju
- Yellow Wine
- Other Non-Grape Wine
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- Champagne
- Other Sparkling Wine
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- Still Red Wine
- Still Rosé Wine
- Still White Wine
- Non Alcoholic Wine
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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
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This report originates from Passport, our Alcoholic Drinks research and analysis database.
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