Saudi Arabia Coffee Market to Reach US$2.27B by 2033 Driven by Culture, Youth Vision 2030
Brewing Success: The Dynamic Saudi Arabia Coffee Market
The Saudi Arabian coffee market is experiencing a period of remarkable growth, blending deep-seated cultural traditions with modern consumer trends. Driven by the beverage's central role in national identity, a flourishing youth-led cafe culture, and ambitious government initiatives, the market is set to expand significantly. Valued at US$1.38 billion in 2024, it is projected to reach US$2.27 billion by 2033, reflecting a robust Compound Annual Growth Rate (CAGR) of 5.67% over the forecast period of 2025–2033.
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A Cultural Staple and a Modern Delight
Coffee is more than just a beverage in Saudi Arabia; it is a symbol of hospitality, tradition, and social connection. Known locally as "Gahwa," traditional Saudi coffee is prepared with lightly roasted beans, often spiced with cardamom, and served in small cups alongside dates during family gatherings and cultural events. This deeply ingrained custom ensures a steady and loyal consumer base, acting as a powerful foundation for the entire market.
This traditional consumption coexists with a rapidly evolving modern coffee culture. Young Saudis are driving a boom in specialty coffee shops and international chains, which are now staples in urban centers. This demographic's desire for new experiences, coupled with a higher disposable income and the influence of social media, has created a dynamic market where traditional brews and modern espresso-based drinks thrive side-by-side.
Key Market Drivers
1. Enduring Cultural Significance
The cultural importance of coffee in Saudi Arabia is a unique and powerful driver of market growth. "Gahwa" is integral to social rituals and national identity. Events and initiatives that celebrate this heritage, such as the government's declaration of 2022 as the 'Year of Saudi Coffee,' reinforce its central role in society. This cultural pride creates a sustainable demand that is immune to fleeting trends, ensuring the market's long-term stability and growth.
2. Flourishing Cafe Culture Among Youth
Saudi Arabia has a predominantly young population, with over 60% of citizens under the age of 30. This demographic is at the forefront of the country's cafe culture. Cafes have become popular social hubs, offering a blend of traditional hospitality and global coffee trends. The expansion of both local brands like Barns and international giants like Starbucks and Tim Hortons caters to this demand for premium coffee experiences. Social media platforms amplify this trend, with young consumers sharing their cafe visits and driving a desire for new and unique coffee products.
3. Government-led Initiatives under Vision 2030
The Saudi government's Vision 2030 framework is a key catalyst for the market. As part of its economic diversification strategy, the government is actively investing in and supporting the coffee sector. The establishment of the Saudi Coffee Company (SCC), backed by a $319 million investment, is a prime example of this commitment. The SCC's mission is to boost local coffee production, improve quality, and foster a robust coffee industry, from cultivation to consumption. Initiatives like planting 1.3 million coffee trees and creating a "coffee city" in the Jazan region are set to significantly increase domestic production and reduce reliance on imports. This strategic government support not only strengthens the local industry but also enhances Saudi Arabia's standing in the global coffee market.
Future Outlook and Key Trends
The future of the Saudi Arabian coffee market is bright, with a strong focus on innovation and domestic production. The country's strategic goal is to transform itself from a consumer of coffee to a producer of specialty coffee. This is being achieved through technical and financial support for local farmers, as well as collaboration with international organizations like the International Coffee Agreement.
Recent developments highlight this trend:
- The Saudi Coffee Company (SCC) is spearheading efforts to build a new coffee factory in Jazan, a key coffee-growing region.
- Alghanim Industries has partnered with the SCC to promote the local coffee brand JAZEAN, which focuses on sustainability and high-quality Coffea Arabica beans.
- The local brand Barns operates over 500 stores, showcasing the immense potential for homegrown coffee chains.
- International brands continue to expand their presence, while local players are innovating with new products, such as the "Al Rifai" coffee brand from the Gulf Trading Company.
These developments, combined with the government's long-term investment, will likely lead to a more self-sufficient and globally recognized coffee industry in Saudi Arabia.
Market Segmentation
The Saudi Arabian coffee market is segmented by type, distribution channel, and key players.
- By Type: The market is driven by ground coffee, whole beans, instant coffee, and other preparations, reflecting a mix of traditional and modern consumption habits.
- By Distribution Channel: Supermarkets and hypermarkets, convenience stores, and online retail are the primary channels for coffee sales, with online retail growing in importance due to the tech-savvy young population.
- Key Players: The market includes major international brands like Nestle SA, Starbucks Coffee Company, and The Coca-Cola Company, as well as local powerhouses and other global food and beverage companies.
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About the Company: Renub Research
Renub Research is a Market Research and Consulting Company. We have more than 15 years of experience especially in international Business-to-Business Researches, Surveys and Consulting. We provide a wide range of business research solutions that helps companies in making better business decisions. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses. Our wide clientele comprises major players in Healthcare, Travel and Tourism, Food Beverages, Power Energy, Information Technology, Telecom Internet, Chemical, Logistics Automotive, Consumer Goods Retail, Building, and Construction, Agriculture. Our core team is comprised of experienced people holding graduate, postgraduate, and Ph.D. degrees in Finance, Marketing, Human Resource, Bio-Technology, Medicine, Information Technology, Environmental Science, and many more.
Contact Us:
Company Name: Renub Research
Contact Person: Rajat Gupta
Phone No: (D) +91-120-421-9822 (IND)
Email: rajat@renub.com
Saudi Arabia Coffee Market to Reach US$2.27B by 2033 Driven by Culture, Youth Vision 2030
Brewing Success: The Dynamic Saudi Arabia Coffee Market
The Saudi Arabian coffee market is experiencing a period of remarkable growth, blending deep-seated cultural traditions with modern consumer trends. Driven by the beverage's central role in national identity, a flourishing youth-led cafe culture, and ambitious government initiatives, the market is set to expand significantly. Valued at US$1.38 billion in 2024, it is projected to reach US$2.27 billion by 2033, reflecting a robust Compound Annual Growth Rate (CAGR) of 5.67% over the forecast period of 2025–2033.
Request a free sample copy of the report: https://www.renub.com/request-sample-page.php?gturl=saudi-arabia-coffee-market-p.php
A Cultural Staple and a Modern Delight
Coffee is more than just a beverage in Saudi Arabia; it is a symbol of hospitality, tradition, and social connection. Known locally as "Gahwa," traditional Saudi coffee is prepared with lightly roasted beans, often spiced with cardamom, and served in small cups alongside dates during family gatherings and cultural events. This deeply ingrained custom ensures a steady and loyal consumer base, acting as a powerful foundation for the entire market.
This traditional consumption coexists with a rapidly evolving modern coffee culture. Young Saudis are driving a boom in specialty coffee shops and international chains, which are now staples in urban centers. This demographic's desire for new experiences, coupled with a higher disposable income and the influence of social media, has created a dynamic market where traditional brews and modern espresso-based drinks thrive side-by-side.
Key Market Drivers
1. Enduring Cultural Significance
The cultural importance of coffee in Saudi Arabia is a unique and powerful driver of market growth. "Gahwa" is integral to social rituals and national identity. Events and initiatives that celebrate this heritage, such as the government's declaration of 2022 as the 'Year of Saudi Coffee,' reinforce its central role in society. This cultural pride creates a sustainable demand that is immune to fleeting trends, ensuring the market's long-term stability and growth.
2. Flourishing Cafe Culture Among Youth
Saudi Arabia has a predominantly young population, with over 60% of citizens under the age of 30. This demographic is at the forefront of the country's cafe culture. Cafes have become popular social hubs, offering a blend of traditional hospitality and global coffee trends. The expansion of both local brands like Barns and international giants like Starbucks and Tim Hortons caters to this demand for premium coffee experiences. Social media platforms amplify this trend, with young consumers sharing their cafe visits and driving a desire for new and unique coffee products.
3. Government-led Initiatives under Vision 2030
The Saudi government's Vision 2030 framework is a key catalyst for the market. As part of its economic diversification strategy, the government is actively investing in and supporting the coffee sector. The establishment of the Saudi Coffee Company (SCC), backed by a $319 million investment, is a prime example of this commitment. The SCC's mission is to boost local coffee production, improve quality, and foster a robust coffee industry, from cultivation to consumption. Initiatives like planting 1.3 million coffee trees and creating a "coffee city" in the Jazan region are set to significantly increase domestic production and reduce reliance on imports. This strategic government support not only strengthens the local industry but also enhances Saudi Arabia's standing in the global coffee market.
Future Outlook and Key Trends
The future of the Saudi Arabian coffee market is bright, with a strong focus on innovation and domestic production. The country's strategic goal is to transform itself from a consumer of coffee to a producer of specialty coffee. This is being achieved through technical and financial support for local farmers, as well as collaboration with international organizations like the International Coffee Agreement.
Recent developments highlight this trend:
- The Saudi Coffee Company (SCC) is spearheading efforts to build a new coffee factory in Jazan, a key coffee-growing region.
- Alghanim Industries has partnered with the SCC to promote the local coffee brand JAZEAN, which focuses on sustainability and high-quality Coffea Arabica beans.
- The local brand Barns operates over 500 stores, showcasing the immense potential for homegrown coffee chains.
- International brands continue to expand their presence, while local players are innovating with new products, such as the "Al Rifai" coffee brand from the Gulf Trading Company.
These developments, combined with the government's long-term investment, will likely lead to a more self-sufficient and globally recognized coffee industry in Saudi Arabia.
Market Segmentation
The Saudi Arabian coffee market is segmented by type, distribution channel, and key players.
- By Type: The market is driven by ground coffee, whole beans, instant coffee, and other preparations, reflecting a mix of traditional and modern consumption habits.
- By Distribution Channel: Supermarkets and hypermarkets, convenience stores, and online retail are the primary channels for coffee sales, with online retail growing in importance due to the tech-savvy young population.
- Key Players: The market includes major international brands like Nestle SA, Starbucks Coffee Company, and The Coca-Cola Company, as well as local powerhouses and other global food and beverage companies.
Get Customization in the Report: https://www.renub.com/request-customization-page.php?gturl=saudi-arabia-coffee-market-p.php
About the Company: Renub Research
Renub Research is a Market Research and Consulting Company. We have more than 15 years of experience especially in international Business-to-Business Researches, Surveys and Consulting. We provide a wide range of business research solutions that helps companies in making better business decisions. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses. Our wide clientele comprises major players in Healthcare, Travel and Tourism, Food Beverages, Power Energy, Information Technology, Telecom Internet, Chemical, Logistics Automotive, Consumer Goods Retail, Building, and Construction, Agriculture. Our core team is comprised of experienced people holding graduate, postgraduate, and Ph.D. degrees in Finance, Marketing, Human Resource, Bio-Technology, Medicine, Information Technology, Environmental Science, and many more.
Contact Us:
Company Name: Renub Research
Contact Person: Rajat Gupta
Phone No: (D) +91-120-421-9822 (IND)
Email: rajat@renub.com
