Saudi Arabia Coffee Market: Size, Opportunity Analysis and Industry Forecast, 2024-2034

Saudi Arabia Coffee Market Overview

The Saudi Arabia Coffee Market report provides an in-depth analysis of the rapidly evolving coffee industry in the Kingdom. With a growing coffee culture fueled by urbanization, a young population, and changing consumer preferences, Saudi Arabia has become a key player in the global coffee landscape. The report highlights the market dynamics, including the increasing demand for premium coffee products and healthy beverage options.

It examines the rise of café chains, both domestic and international, such as Tim Hortons, Starbucks, and Yogi, which have gained a strong foothold in major cities like Riyadh, Jeddah, and Dammam. Key insights into market segmentation by sales channel, product type, and end-user demographics are provided, along with trends like digitalization and health-conscious consumer behavior.

The report also explores competitive strategies, regional growth patterns, and future outlooks, with forecasts from 2022 to 2027. Whether you are an industry player, investor, or new entrant, this report offers valuable insights to navigate the thriving Saudi Arabian coffee market effectively.

Optimized for clarity and SEO, this overview ensures readability and relevance for stakeholders seeking actionable intelligence in this dynamic market.

Market Report Coverage:

The “Saudi Arabia Coffee Market Report—Future (2024-2029)” by Digiroads Research & Consulting covers an in-depth analysis of the following segments in the market.

Study Assumptions and Definitions

This report on the Saudi Arabia Coffee Market is based on a detailed analysis of industry trends, market dynamics, and consumer behavior. The study assumes stable economic conditions in the Kingdom of Saudi Arabia during the forecast period (2022-2027), supported by continued government initiatives like Vision 2030 to promote diversification and growth. Key assumptions include rising urbanization, a growing middle class, and an increasing working-age population driving demand for coffee and related products.

Definitions in this study are standardized to ensure clarity. The term “Chained Cafes” refers to branded café outlets operating under a unified management system, while “Standalone Cafes” include independent establishments. Product categories like “Acai Bowls,” “Smoothies,” and “Frozen Yogurt” are defined as health-oriented offerings gaining traction among health-conscious consumers.

The segmentation of end-users is based on demographic groups and key touchpoints like airports, fitness centers, and universities. The geographic division includes Saudi Arabia’s primary regions (South, North, West, and East).

This study assumes that market players will continue to innovate through digitalization, healthier menu options, and premium offerings to meet the evolving preferences of Saudi consumers. It also considers the competitive landscape shaped by domestic and international brands.

Market Scope

The Saudi Arabia Coffee Market report comprehensively analyzes the dynamics of the growing coffee culture in the Kingdom. It examines the market by segmenting it into sales channels (chained and standalone cafes), services (in-dine and takeaway), product categories (coffee shops, acai bowls, frozen yogurt, smoothies, and healthy cafes), and regional divisions (South, North, West, and East).

The scope also covers end-user groups such as Gen Z consumers, mothers, university students, airport travelers, and fitness enthusiasts. It evaluates key factors driving market growth, including urbanization, a health-conscious population, and the influx of international café chains.

The report provides insights into the competitive landscape, identifying leading domestic and international players, and explores emerging trends like premium coffee demand, digitalization, and healthier menu options. Forecasting market growth from 2022 to 2027, it equips stakeholders with data to make informed strategic decisions.

MARKET OUTLOOK

Executive Summary

The Saudi Arabia Coffee Market is experiencing significant growth, driven by a combination of changing consumer preferences, an increasingly health-conscious population, and a booming café culture. With a young, dynamic population and rapid urbanization, Saudi Arabia has become a key market for coffee chains and related food offerings. This report provides a detailed analysis of the market, segmented by sales channels, services, product categories, and regional distribution.

The market is largely fueled by the rising demand for high-quality coffee, specialty blends, and healthier food alternatives like acai bowls, smoothies, and frozen yogurt. Both domestic and international players, including Starbucks, Tim Hortons, and Yogi, are catering to these evolving tastes, expanding their presence in major cities such as Riyadh, Jeddah, and Dammam. Moreover, the shift towards healthier lifestyles, supported by increasing media awareness and wellness trends, has given rise to cafés focusing on nutrition, such as health-oriented outlets and juice bars.

The report highlights the segmentation of the market by various categories, including acai bowls, coffee shops, smoothies, and frozen yogurt. The market’s competitive landscape is characterized by more than 25 key players, with a focus on distribution networks, consumer base expansion, and strategic alliances. Additionally, the growth of digital platforms, including mobile ordering apps and delivery services, has become an integral part of enhancing customer experience and driving market growth.

Forecasting continued expansion, the Saudi coffee market is expected to grow at a robust pace between 2022 and 2027, fueled by rising disposable incomes, changing consumer habits, and government support for the foodservice sector. This report offers valuable insights into current trends, future projections, and strategic recommendations for stakeholders, investors, and new entrants aiming to succeed in this dynamic market.

COMPETITIVE LANDSCAPE

The Saudi Arabia Coffee Market is moderately fragmented, with regional and multinational players competing fiercely for market share.

Key Market Players

• Tim Hortons
• Starbucks
• Moon Shell
• Yogi
• Oakberry
• The Acai Café
• Signature Juices
• Juice Time
• Smoothie Factory
• Doki Doki
• Capital Juice
• RAW
• Costa Coffee
• Caffe Bene
• Frutta
• Go Greek
• Pinkberry
• Movenpick
• Scoop Cube
• Frutta

Market Share Analysis

The Saudi Arabia Coffee Market is highly competitive, with a mix of international chains and local players vying for market share. The market is primarily dominated by well-established global brands like Starbucks and Tim Hortons, which have a strong presence in major cities such as Riyadh, Jeddah, and Dammam. These brands leverage their global reputation, extensive networks, and consistent product offerings to attract a broad consumer base.

However, local players like Yogi, Moon Shell, and Oakberry are increasingly capturing the attention of health-conscious consumers by offering healthier alternatives like acai bowls, frozen yogurt, smoothies, and juices. These health-focused products are gaining traction, particularly among the young and millennial demographic, who are more inclined towards wellness and nutrition.

Smaller regional players, including Signature Juices and Doki Doki, are also expanding their footprint, particularly by focusing on customer service, innovative menus, and digital engagement like mobile apps and delivery services.

The market share is distributed across multiple segments, with coffee shops continuing to hold a significant portion of the market, followed by smoothie and juice bars and healthy cafes. While international chains dominate the coffee shop sector, local brands in the health-oriented categories are quickly gaining ground, reflecting the growing trend of nutritious, specialty offerings. This dynamic competitive environment indicates strong growth potential for both local and global players in the coming years.

MARKET DYNAMICS

Market Drivers and Key Innovations

Market Drivers:
The Saudi Arabia Coffee Market is driven by several key factors that are fueling its rapid expansion. The growing urbanization and increasing disposable incomes of the Saudi population have led to a greater demand for premium coffee products and café experiences. Additionally, the country’s young, tech-savvy demographic, with a large number of millennials and Gen Z consumers, is particularly drawn to international and specialty coffee chains offering diverse, high-quality beverages.

A shift towards healthier lifestyles has also been a major driver. As consumers become more health-conscious, there is an increasing demand for nutritious food and beverage options such as acai bowls, smoothies, and frozen yogurt. This trend is reinforced by the growing awareness of wellness through media, making health-focused cafés a prominent feature in the market.

Key Innovations:
In response to evolving consumer preferences, key players in the Saudi coffee market are incorporating innovations to enhance the customer experience. Many coffee chains and juice bars have adopted digital solutions such as mobile ordering apps, loyalty programs, and online delivery services to streamline customer interaction and improve convenience.

Health-oriented cafés are introducing innovative product offerings such as vegan-friendly options, plant-based milk alternatives, and customized blends catering to specific dietary needs. Additionally, the integration of sustainability practices, such as eco-friendly packaging and ethically sourced coffee beans, is becoming an increasingly important innovation as consumers demand more responsible consumption choices.

These drivers and innovations indicate a thriving, dynamic market that continues to evolve in line with global and regional trends.

Market Challenges

1. Intense Competition:
   The Saudi coffee market is highly competitive, with both international chains (e.g., Starbucks, Tim Hortons) and local players (e.g., Yogi, Moon Shell) vying for market share. This intense competition can lead to price wars and pressure on margins, especially for new entrants.
2. High Operational Costs:
   Running a café or coffee chain in Saudi Arabia involves high operational costs, including rental expenses in prime locations, labor costs, and supply chain management. These factors can be especially challenging for smaller or newer players.
3. Cultural Sensitivities:
   Despite the increasing popularity of café culture, there may be cultural barriers to the full acceptance of non-traditional coffee offerings or foreign chains, especially in more conservative areas. This can limit the reach of certain products or brands.
4. Supply Chain Disruptions:
   Global supply chain disruptions, including fluctuations in the availability and cost of coffee beans, equipment, and raw materials, can negatively impact the market. Volatility in global trade and shipping also contributes to these challenges.
5. Health Concerns with Sugary Beverages:
   While health-focused coffee shops are gaining popularity, traditional coffee drinks with high sugar content may face consumer pushback due to increasing health awareness. This can impact the sales of sugary beverages in certain consumer segments.
6. Consumer Price Sensitivity:
   While there is a willingness among consumers to spend on premium products, there is also a significant price-sensitive segment. Balancing quality with affordability remains a challenge for many coffee chains.
7. Regulatory and Compliance Issues:
   Navigating the regulatory environment, including food safety standards, permits, and import restrictions, can be challenging for coffee businesses, especially those looking to scale rapidly.

Market Opportunities

1. Growing Health Consciousness:
   The increasing focus on wellness and healthier lifestyles presents a significant opportunity for coffee chains to introduce health-oriented products, such as acai bowls, smoothies, and low-calorie beverages, catering to the rising demand for nutritious alternatives.
2. Expansion of International Coffee Chains:
   There is a growing demand for global coffee brands like Starbucks, Tim Hortons, and Costa Coffee in Saudi Arabia. Expanding their footprint in emerging cities beyond Riyadh, Jeddah, and Dammam can tap into untapped markets and reach a wider customer base.
3. Technological Advancements:
   The integration of mobile ordering apps, loyalty programs, and delivery services offers coffee chains an opportunity to enhance customer convenience and engagement. Digital platforms provide a competitive edge in attracting tech-savvy consumers, especially among younger demographics.
4. Rise of Premium Coffee Offerings:
   As consumer preferences shift towards premium products, there is an opportunity for coffee chains to introduce specialty coffees, unique blends, and single-origin options to cater to more discerning customers seeking high-quality experiences.
5. Targeting Millennial and Gen Z Consumers:
   With a large proportion of Saudi Arabia’s population falling into the millennial and Gen Z age groups, coffee chains can capitalize on their preference for trendy, socially responsible, and experience-driven brands. Offering vegan, plant-based, and customized products aligns with these demographics’ values.
6. Expansion into Non-Traditional Locations:
   Expanding coffee chains into locations such as airports, hospitals, and fitness centers can open up new revenue streams. These non-traditional venues attract high foot traffic and are ideal for offering convenient takeaway options.
7. Sustainability Initiatives:
   Consumers are increasingly prioritizing sustainability. Coffee chains can seize opportunities by adopting eco-friendly practices, such as using recyclable packaging, offering plant-based milk alternatives, and sourcing ethically produced coffee beans.
8. Growing Tourism Industry:
   As Saudi Arabia’s tourism industry expands under Vision 2030, there will be increased demand for coffee shops and cafés catering to both local and international visitors. This growth presents opportunities for coffee businesses to cater to diverse consumer preferences.

RECENT STRATEGIES & DEVELOPMENTS IN THE MARKET

Expansion of International Brands

• Starbucks and Tim Hortons continue to expand their footprint in Saudi Arabia, with new outlets opening in key cities like Riyadh, Jeddah, and Dammam. In 2022, Starbucks opened multiple new stores across the Kingdom, increasing its market share.
• Costa Coffee is also expanding in smaller cities and rural areas to tap into the growing coffee culture.

Health-Oriented Menu Offerings

• Yogi and Moon Shell have introduced healthier food options like acai bowls, frozen yogurt, and smoothies to cater to the rising demand for nutritious alternatives. For example, Yogi offers a variety of acai bowls that appeal to health-conscious consumers.
• Signature Juices has expanded its menu with healthier smoothie and juice options, tapping into the growing wellness trend.

Increased Digitalization and Online Ordering

• Many coffee chains have integrated mobile apps, loyalty programs, and delivery services to improve customer convenience. Starbucks and Tim Hortons have enhanced their mobile ordering apps, providing users with faster service and rewards for frequent purchases.
• Moon Shell and Oakberry have focused on online ordering and delivery services, capitalizing on the surge in demand for contactless transactions post-pandemic.

Sustainability Initiatives

• To align with sustainability goals, brands like Starbucks have pledged to use recyclable packaging and shift towards more sustainable coffee sourcing practices. In 2022, Starbucks announced a goal to reduce its environmental impact by using plant-based materials for its packaging.
• Costa Coffee introduced reusable cups as part of its sustainability drive, encouraging customers to reduce waste.

Local Player Growth

• Local brands such as Oakberry and Yogi are seeing an increase in demand for their products, with Oakberry reportedly increasing its outlets by 15% in 2022 alone. These local players are capitalizing on the trend of offering health-focused coffee alternatives and healthier food options.

Strategic Investments by SCC

• The Saudi Coffee Company (SCC) has announced a major investment of SAR 1 billion to increase the Kingdom’s coffee production from 300 tons to over 2,500 tons by 2030. This initiative aims to boost local coffee production and reduce the reliance on imported coffee beans.

Expansion into Non-Traditional Locations

• Coffee chains are increasingly targeting non-traditional venues like airports, hospitals, and fitness centers to capture a larger customer base. For instance, Starbucks and Tim Hortons have expanded their presence in airports to serve both travelers and local commuters.

KEY BENEFITS FOR STAKEHOLDERS

For Coffee Chains (Domestic & International):

• Market Expansion: The growing demand for coffee, particularly premium and health-oriented offerings, provides an opportunity for brands to expand their footprint across key cities and non-traditional locations like airports, fitness centers, and hospitals.
• Diversified Consumer Base: The large, young, and tech-savvy population allows coffee chains to cater to a diverse range of consumer preferences, from traditional coffee lovers to health-conscious individuals seeking alternatives like smoothies and acai bowls.
• Increased Profit Margins: As consumers are willing to pay more for quality coffee and healthy food options, coffee chains can increase their average transaction value, thus boosting profit margins.

For Local and Regional Coffee Brands:

• Emerging Consumer Preferences: Local brands can capitalize on the growing trend of healthy eating and drink options, particularly by offering unique products like acai bowls, frozen yogurt, and smoothies.
• Less Market Saturation: Regional brands can carve out niches in areas that are underserved by global players, allowing for better market positioning and differentiation in the early stages.

For Investors and Venture Capitalists:

• High Growth Potential: The Saudi coffee market is witnessing rapid expansion, driven by increasing disposable income, changing consumer preferences, and infrastructure development, making it an attractive investment opportunity.
• Emerging Trends: Innovations in digital ordering, health-focused offerings, and sustainability initiatives provide promising avenues for investment in future growth sectors.

For Supply Chain Partners:

• Increased Demand for Specialty Ingredients: The growing demand for premium and health-focused coffee products creates opportunities for suppliers of specialty ingredients, such as ethically sourced coffee beans, plant-based milk alternatives, and health-conscious food products.
• Logistics and Distribution Growth: With the expansion of coffee chains across Saudi Arabia, supply chain and logistics companies will benefit from increased demand for raw materials, packaging, and distribution services.

For Consumers:

• Increased Product Variety: The market’s evolution ensures consumers have access to a wider range of products, from premium coffee blends to health-conscious snacks and beverages, catering to different tastes and dietary needs.
• Convenience and Accessibility: The increasing adoption of mobile ordering, delivery apps, and loyalty programs enhances convenience, allowing consumers to enjoy their favorite coffee from the comfort of their homes or on-the-go.

For Government and Regulatory Bodies:

• • Economic Growth: The growth of the coffee market aligns with Saudi Arabia’s Vision 2030, which focuses on diversifying the economy and fostering growth in non-oil sectors like food services and tourism.

• Job Creation: The expanding coffee industry, particularly in retail, distribution, and food services, creates job opportunities, contributing to the country’s employment goals.

At DigiRoads Research, we emphasize reliability by employing robust market estimation and data validation methodologies. Our insights are further enhanced by our proprietary data forecasting model, which projects market growth trends up to 2029. This forward-thinking approach ensures our analysis not only captures the current market landscape but also anticipates future developments, equipping stakeholders with actionable foresight.

We go a step further by offering an exhaustive set of regional and country-level data points, supplemented by over 60 detailed charts at no additional cost. This commitment to transparency and accessibility allows stakeholders to gain a deep understanding of the industry’s structural and operational dynamics. By providing exclusive and hard-to-access data, DigiRoads Research empowers businesses to make informed strategic decisions with confidence.

In essence, our methodology and data delivery foster a collaborative and data-driven decision-making environment, enabling businesses to navigate industry challenges and capitalize on opportunities effectively.

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Table of Contents

• INTRODUCTION

  • Market Overview
  • Years Considered for Study
  • Market Segmentation
  • Study Assumptions and Definitions
  • Market Scope

• RESEARCH METHODOLOGY

• MARKET OUTLOOK

  • Executive Summary
  • Market Snapshot)

• Market Segments 

• By Sales Channel:

Chained Cafes, Standalone Cafes

• By Services:

In-dine, Takeaway

• By Category:

Acai Bowls, Frozen Yogurt, Smoothies and Juice Bars, Coffee Shops, Healthy Cafes

• COMPETITIVE LANDSCAPE

  • Recent Strategies (Key Strategic Moves)
  • Market Share Analysis
  • Company Profiles
    • Tim Hortons
    • Starbucks
    • Moon Shell
    • Yogi
    • Oakberry
    • The Acai Café
    • Signature Juices
    • Juice Time
    • Smoothie Factory
    • Doki Doki
    • Capital Juice
    • RAW
    • Costa Coffee
    • Caffe Bene
    • Frutta
    • Go Greek
    • Pinkberry
    • Movenpick
    • Scoop Cube
    • Frutta   

• MARKET DYNAMICS

  • Market Drivers
  • Market Challenges
  • Market opportunities
  • Porter’s Five Forces’ Analysis
    • Bargaining Power of Suppliers
    • Bargaining Power of Buyers
    • Threat of New Entrant
    • Threat of Substitutes
    • Competitive Rivalry

• GLOSSARY OF PROMINENT SECODNARY SOURCES

• DISCLAIMER

• ABOUT US