Saudi Arabia Coffee Market Size and Growth Analysis

Market Overview

The Saudi Arabia coffee market, valued at USD 1.38 billion in 2024, is expected to achieve robust growth, reaching USD 2.27 billion by 2033. This expansion represents a compound annual growth rate (CAGR) of 5.67% from 2025 to 2033. Factors such as the cultural significance of coffee, the rise of café culture among younger generations, and government-backed initiatives under Vision 2030 are driving this market's impressive growth.

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Saudi Arabia Coffee Market Outlook

Coffee, a globally popular brewed beverage, holds a unique cultural and social significance in Saudi Arabia. Known locally as "Gahwa," Saudi coffee is traditionally prepared with lightly roasted beans, cardamom, and other spices. It is an integral part of Saudi hospitality, often served in small cups alongside dates during family gatherings and social events.

The Saudi coffee market is characterized by a blend of traditional practices and modern influences, with specialty coffee shops and international chains gaining popularity among urban consumers. This fusion has led to a dynamic market landscape that respects heritage while embracing global coffee trends.

Key Market Insights

Market Features

Growth Drivers of the Saudi Arabia Coffee Market

1. Cultural Significance and Traditional Practices

Saudi Arabia's coffee, or "Gahwa," is a symbol of hospitality and respect. It is deeply embedded in the nation's culture, often enjoyed during gatherings and special events. Government initiatives, such as the Saudi Coffee Initiative, promote the preservation of these traditions while fostering growth.

Additionally, efforts to bolster domestic production are underway, with plans to plant 1.3 million coffee trees by 2025, potentially quadrupling production to 40,000 bags by 2028. This aligns with the government's goal of blending tradition with modern agricultural practices.

2. Growing Café Culture Among Youth

The emergence of café culture, particularly among millennials and Gen Z, has reshaped coffee consumption in Saudi Arabia. Specialty coffee shops and global chains are thriving in urban areas, driven by:

• Increasing disposable incomes.
• Social media influence.
• A preference for innovative coffee experiences, such as cold brews and espresso-based drinks.

The country's youthful demographics, with 63% of the population under 30 years old, further fuel the demand for specialty coffee and café experiences.

3. Government Initiatives and Vision 2030

Saudi Arabia's Vision 2030 emphasizes diversifying the economy and developing the food and beverage sector. Key initiatives include:

• The Saudi Coffee Initiative, which focuses on enhancing local coffee production, particularly in the Jazan region.
• Establishing the Saudi Coffee Company, backed by a $319 million investment over the next decade.

These efforts aim to position Saudi Arabia as a hub for coffee production and consumption, bolstering both domestic and international recognition.

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Greece Coffee Market

Future Prospects of the Saudi Arabia Coffee Market

Saudi Arabia is actively transforming into a coffee-producing nation, supported by strategic investments in the sector. Specialty coffee's growing popularity and the rise of café culture mirror trends in Europe and North America.

Key Developments and Projections:

• Annual coffee production is expected to rise from 300 tonnes to 2,500 tonnes.
• Initiatives such as the establishment of a coffee city and efforts to include Saudi coffee on the UNESCO Intangible Cultural Heritage List highlight the government’s commitment.
• The growing presence of international coffee brands and local chains like Barns ensures sustained market momentum.

Recent Developments in Saudi Arabia's Coffee Industry

• May 2024: The Saudi Coffee Company opened a coffee manufacturing factory in Jazan.
• March 2024: Alghanim Industries partnered with the Saudi Coffee Company to promote the specialty coffee brand, Jazean.
• July 2024: The Gulf Trading Company launched the "Al Rifai" coffee line.

Market Segmentation

By Type

• Instant Coffee
• Ground Coffee
• Whole Bean Coffee
• Others

By Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Online Retail
• Others

Key Players in the Saudi Arabia Coffee Market

• The J.M. Smucker Company
• The Kraft Heinz Company
• Nestlé SA
• Starbucks Coffee Company
• Luigi Lavazza SPA
• Tata Global Beverages
• The Coca-Cola Company

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