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.
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.
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.
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.
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.
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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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
See all of our definitionsThis report originates from Passport, our Alcoholic Drinks research and analysis database.
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