Saudi Arabia Coffee Market Synopsis

Saudi Arabia’s Coffee Market is Expected to Grow at a Significant Growth Rate, and the Forecast Period is 2023-2030, Considering the Base Year as 2022.

Coffee is a popular beverage in Saudi Arabia and the market is driven by factors such as increasing urbanization, rising disposable income, and growing demand for innovative flavors and new tastes.

• Increasing urbanization is leading to a change in lifestyle, with people spending more time outside their homes. This is leading to an increase in the demand for coffee, which is a convenient and refreshing beverage. Rising disposable income is also driving the growth of the coffee market. Consumers are now able to afford to spend more on premium coffee products.
• coffee-related events and exhibitions have become more prominent in Saudi Arabia, creating platforms for local and international coffee producers to showcase their products and technologies. The government's support for these events has helped create a vibrant coffee community in the country.
• The Saudi Arabia coffee market is highly competitive. The key players are adopting various strategies, such as product innovation, expansion into new regions, and mergers and acquisitions, to gain a competitive edge.

Top Key Players:

"Starbucks (USA), Costa Coffee (UK), Dunkin' Donuts (USA), Tim Hortons (Canada), Caffè Nero (UK), Lavazza (Italy), illy (Italy), Caribou Coffee (USA), Second Cup (Canada), McCafé (USA), Coffee Republic (UK), Bateel Café (Saudi Arabia), Dr. Cafe Coffee (Saudi Arabia), Brew92° (Saudi Arabia), Black Coffee Roastery (Saudi Arabia), Cup & Couch Coffee Roasters (Saudi Arabia), The Coffee Bean & Tea Leaf (USA), Dome Cafe (Australia), Gloria Jean's Coffees (Australia), Peet's Coffee (USA) and Other Major Players"

Saudi Arabia Coffee Market Trend Analysis

Cultural Shift and Social Media Influence

• The coffee market in Saudi Arabia is being driven by several factors, including cultural shifts and social media influence. In recent years, there has been a growing interest in coffee culture in Saudi Arabia, as more and more people are becoming exposed to different types of coffee and coffee experiences.
• Social media is playing a significant role in driving the growth of the coffee market in Saudi Arabia. Platforms like Instagram and TikTok are being used by coffee enthusiasts to share their love of coffee with others and to promote new coffee shops and coffee brands. This has led to a growing awareness of coffee culture among Saudi Arabian consumers and has encouraged them to try new coffee products and experiences.
• The changing social norms in Saudi Arabia are also playing a role in driving the growth of the coffee market. In the past, coffee was traditionally seen as a male-dominated beverage, but this is beginning to change. As more women are entering the workforce and becoming more independent, they are also becoming more interested in coffee. This is leading to a growing demand for women-friendly coffee shops and coffee experiences.

Export Potential of Coffee

• The Saudi Arabia coffee market is a growing market with a lot of potential for export. The country has a long history of coffee cultivation and production, and the quality of Saudi Arabian coffee is highly regarded.
• In recent years, there has been a growing interest in Saudi Arabian coffee in international markets, and there is a lot of potential for Saudi Arabian coffee producers to export their products to other countries.
• The export potential of coffee in the Saudi Arabia coffee market is being driven by the growing demand for coffee in international markets, the high quality of Saudi Arabian coffee, and the increasing number of trade agreements between Saudi Arabia and other countries.
• The Saudi Arabia coffee market is a promising market for export. With the right strategies and investments, Saudi Arabian coffee producers can tap into the growing demand for coffee in international markets and export their products to countries all over the world.

Saudi Arabia Coffee Market Segment Analysis

Saudi Arabia’s Coffee Market is segmented into the Form, Speciality Coffee, Flavors, Distribution Channel, and End-Users. By Forms, the Coffee Pods & Capsules segment is Anticipated to Dominate the Market Over the Forecast Period.

• The coffee pods and capsules segment is anticipated to dominate the Saudi Arabia coffee market by forms in 2022. This is due to the convenience and ease of use of coffee pods and capsules. Consumers can simply insert a pod or capsule into a coffee machine and press a button to make a cup of coffee.
• The growth of the coffee pods and capsules segment is being driven by a number of factors, including the increasing popularity of single-serve coffee machines, the growing demand for convenience, and the increasing health consciousness of consumers.
• Single-serve coffee machines are becoming increasingly popular, as they allow consumers to make a cup of coffee quickly and easily. Coffee pods and capsules are specifically designed for these machines, making them a convenient and easy way to enjoy a cup of coffee.
• Consumers are also becoming increasingly health conscious, and they are looking for coffee products that are low in sugar and calories. Coffee pods and capsules are often lower in sugar and calories than traditional ground coffee, making them a healthier option for consumers.

                                                                                                                                                                                                (Source: Statista)

Between 2018 and 2022, the Saudi Arabia coffee market experienced consistent revenue growth from coffee machines. Commencing at 17.4 million USD in 2018, the figures steadily rose year by year, culminating in 21.56 million USD in 2021. This upward trajectory highlighted a burgeoning coffee culture and an increasing fascination with coffee machines in the country. Despite a slight decrease in revenue in 2022 to 20.68 million USD, the overall trend remains positive, indicating a promising market for coffee machines in Saudi Arabia. As the demand for convenient and high-quality coffee experiences continues to grow, the coffee machine market is poised for further expansion in the future.

Saudi Arabia Coffee Market Country Analysis

• Saudi Arabia is dominating the coffee market due to a number of factors, including its growing economy, increasing disposable income, and rising urbanization. The country's economy has been growing steadily in recent years, and this has led to an increase in disposable income among consumers.
• Saudi Arabia is a rapidly urbanizing country. This means that more and more people are moving to cities, where they have more access to coffee shops and other places to buy coffee. This has also led to an increase in the demand for coffee in Saudi Arabia.
• Saudi Arabia has a long history of coffee cultivation and production. The country is home to some of the world's best coffee beans, and this has helped to make Saudi Arabia a global leader in the coffee industry.

Covid-19 Impact Analysis on the Saudi Arabia Coffee Market

• The COVID-19 pandemic has had a significant impact on the Saudi Arabia coffee market. The pandemic has led to a decline in tourism, which has hurt the coffee industry in the country. In addition, the pandemic has led to a decrease in foot traffic in stores, which has also hurt coffee sales.
• The pandemic has also created some opportunities for the coffee industry in Saudi Arabia. The pandemic has led to an increase in demand for coffee at home, which has benefited coffee shops that offer delivery and takeout services.
• The impact of COVID-19 on the Saudi Arabia coffee market has been mixed. The pandemic has led to some challenges for the industry, but it has also created some opportunities. The coffee industry in Saudi Arabia is expected to recover from the pandemic in the coming years, and it is expected to continue to grow in the long term.

Top Key Players Covered in The Saudi Arabia Coffee Market

• Starbucks (USA)
• Costa Coffee (UK)
• Dunkin' Donuts (USA)
• Tim Hortons (Canada)
• Caffè Nero (UK)
• Lavazza (Italy)
• illy (Italy)
• Caribou Coffee (USA)
• Second Cup (Canada)
• McCafé (USA)
• Coffee Republic (UK)
• Bateel Café (Saudi Arabia)
• Cafe Coffee (Saudi Arabia)
• Brew92° (Saudi Arabia)
• Black Coffee Roastery (Saudi Arabia)
• Cup & Couch Coffee Roasters (Saudi Arabia)
• The Coffee Bean & Tea Leaf (USA)
• Dome Cafe (Australia)
• Gloria Jean's Coffees (Australia)
• Peet's Coffee (USA) and Other Major Players

Key Industry Developments in the Saudi Arabia Coffee Market

In July 2023, The COFE App entered into a strategic partnership with the Saudi Coffee Company, aiming to enhance and strengthen the domestic coffee market. As the primary online partner for SCC, the COFE App aims to expand the market reach of the Saudi Coffee Company and propel Saudi Arabia's coffee industry into the digital realm. The collaboration aims to facilitate a seamless and convenient connection between local coffee producers and end-users, fostering growth and accessibility within the domestic coffee market.

In March 2023, The Saudi Coffee Company recently disclosed a collaboration with the Jazan Mountains Development Authority. In the presence of HRH Prince Muhammad Bin Nasser bin Abdulaziz Al-Saud, the Governor of Jazan, and Vice Chairman of the Board of Directors of the Jazan Mountains Development Authority, the Saudi Coffee Company and the Jazan Mountains Development Authority signed a Memorandum of Understanding (MoU).