Total volume sales of alcoholic drinks rose in Oman in 2024. The consumer base for alcoholic drinks did not change much over the course of the year, though the Omani Government pressed ahead with its Omanisation strategy, which aimed to increase the percentage of Omanis within the population amid the considerable reliance on expatriates. Omanisation would have typically put some pressure on demand for beer amid the lack of consumption by Omani nationals, but the total number of expatriates only fell slightly in 2024. In this regard, and with the number of expatriates in the Sultanate relatively stable, it was the population composition that impacted alcoholic drinks. Expatriates are the core consumers of drinks in Oman. In 2024, the country saw a shift in the composition of its expatriate population, with expats from Bangladesh, India, Philippines, and Sri Lanka seeing a decline from the preceding year, while foreign workers from Pakistan, Egypt, Myanmar, Sudan, and Tanzania saw their numbers rise.
Beer was the largest category within alcoholic drinks overall in 2024. Beer’s strength is supported by non alcoholic beer, which is the most popular category within beer because of the Sultanate’s cultural and religious constraints. Oman is governed by an Islamic shariah-based legal system and cultural and religious values forbidding alcohol consumption, which are collectively imposed on a Muslim-majority population. Standard lager was the second most popular category in Oman in 2024 and throughout the review period, thanks to its suitability to local conditions, positioning, and affordability. Beer, wine and spirits each saw similar growth rates in 2024, while cider/perry and RTDs witnessed declines in volume sales during the year.
Anheuser-Busch InBev NV was the largest company in alcoholic drinks in Oman in 2024 thanks to its leading position in the important beer category. Indeed, the top five players were all brewers during the year. While sixth placed, Diageo is also present in beer, through the Guinness and Kilkenny brands, as well as RTDs, its strength is primarily founded on spirits, in which it is the leading player. Within spirits, the company produces the Johnnie Walker, J&B, Captain Morgan, Baileys, Don Julio, and Tanqueray brands, which are present in the whiskies, rum, liqueurs, tequila, and white spirits categories. Present in other blended Scotch whisky, Diageo’s Johnnie Walker is the leading brand in spirits overall in the Omani market.
Hypermarkets was the leading distribution channel within alcoholic drinks overall in 2024, having overtaken supermarkets during the year. However, the strength of both channels is founded on their role in the distribution of non alcoholic beer. Hypermarkets and supermarkets are the leading grocery retailing formats in Oman and consumers often buy non alcoholic beer as part of their grocery shopping. Moreover, these outlets stock a wider range of non alcoholic beer than other stores. Furthermore, consumers increasingly felt the impact of economic pressures towards the end of the review period and looked for ways to save on grocery purchases. In this environment, consumers turned to cheaper brands or searched for the best prices and promotions available. This particularly benefited hypermarkets, which ran regular promotional offers.
E-commerce remains underdeveloped in Oman, and this situation is unlikely to change substantially before the end of the forecast period. Furthermore, it is not expected that off-trade beer retailers like OUA and A+E will develop online retailing for alcoholic beer given the restrictions in place in the Sultanate. E-commerce is therefore likely to remain limited to some online purchases of non alcoholic beer.
Total volume sales of alcoholic drinks are set to rise in Oman over the forecast period. Alcoholic drinks’ growth is set to rely on larger inflows of expatriates and tourists to Oman that will support both off- and on-trade sales. The Sultanate is expected to see further job creation in the forecast period, at least during the first few years, encouraging thousands of new working expatriates to settle in the country. This will expand the consumer base across both the off-trade and on-trade channels. The Gulf Cooperation Council (GCC) countries are set to welcome new resident expatriates over the forecast period, with Saudi Arabia leading the pack, followed by the UAE and Oman. The increasing number of expatriates residing in Oman’s neighbouring countries will also boost tourism inflows to the Sultanate, which is increasingly being positioned as a weekend getaway location.
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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
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