Saudi Arabia Coffee Market Size and Forecast 2025–2033

The Saudi Arabian coffee market, valued at USD 1.38 billion in 2024, is on a strong upward trajectory and is projected to reach USD 2.27 billion by 2033, according to Renub Research figures shared. This expansion reflects a robust CAGR of 5.67% during the forecast period 2025–2033. Coffee’s cultural significance, rapidly evolving café culture, and government-backed initiatives—including the Saudi Coffee Initiative under Vision 2030—are creating a perfect environment for the sector’s sustained growth.

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Overview of the Coffee Market in Saudi Arabia

Coffee, one of the world’s most consumed beverages, enjoys a special cultural status in Saudi Arabia—far beyond its global reputation as a stimulant derived from roasted beans. Known locally as “Gahwa,” Saudi coffee is traditionally prepared using lightly roasted beans, cardamom, cloves, and occasionally saffron. It is served in small cups and often paired with dates, symbolizing hospitality, generosity, and social unity.

Coffee consumption in the Kingdom is deeply rooted in history and spirituality, forming an integral part of daily life. Whether in family gatherings, business meetings, tribal occasions, or ceremonies, Gahwa remains essential in social engagement.

However, modern influences have reshaped the market dramatically. Urbanization, exposure to global lifestyle trends, and the influence of millennials and Gen Z have ushered in a wave of specialty cafés, international coffee chains, and artisanal roasters. Today, Saudi Arabia’s coffee landscape blends heritage with innovation, making it one of the most dynamic markets in the Middle East.

Drivers of Growth in the Saudi Arabia Coffee Market

1. Cultural Significance and Deep-Rooted Traditions

Saudi Arabia’s strong connection with coffee forms the backbone of its market growth. Traditional Gahwa represents:

Hospitality and respect

Community bonding

Ceremonial importance

National cultural identity

Government-led cultural programs and festivals showcasing Saudi traditions continue to elevate the importance of coffee. Initiatives aimed at preserving heritage directly aid market stability and expansion.

A major example is the agricultural revival project where Torch Coffee Company is partnering on a plan to plant 1.3 million coffee trees by 2025. Once these plants mature, national coffee production is expected to quadruple by 2028 to nearly 40,000 bags, strengthening supply and reducing import dependency.

2. Expanding Café Culture Driven by Young Consumers

The modern shift in Saudi coffee consumption is heavily influenced by the country’s youthful demographic. As of May 2023, Saudi Arabia had a population of 32.2 million, and 63% of Saudi nationals are under 30. This young, aspirational group has embraced coffee shop culture as:

A social hub

A workspace

A lifestyle reflection

A gateway to global trends

Specialty coffee houses and global brands like Starbucks, Costa, and Tim Hortons have expanded aggressively, while local roasters and boutique cafés are flourishing. Social media platforms—especially Instagram and TikTok—have also amplified specialty coffee trends, driving interest in cold brews, pour-over methods, and premium blends.

This café-centric lifestyle is one of the strongest growth drivers for the sector.

3. Government Initiatives: Vision 2030 and the Saudi Coffee Initiative

Under Vision 2030, Saudi Arabia aims to diversify its economy and strengthen the food & beverage sector. Coffee has been designated as a strategic agriculture and cultural commodity.

Key initiatives include:

Saudi Coffee Initiative, focusing on expanding coffee cultivation—especially in the Jazan region.

Strengthening infrastructure for production, roasting, and distribution.

Support for small businesses and café entrepreneurs.

Marketing campaigns to promote Saudi coffee culture domestically and internationally.

The most notable investment came in May 2022, when the Public Investment Fund (PIF) launched the Saudi Coffee Company with a USD 319 million investment over 10 years. Its mission spans from crop development to global branding.

These long-term efforts are expected to significantly uplift the domestic coffee ecosystem and potentially position Saudi Arabia as a recognized global coffee player.

Future Outlook of the Saudi Arabia Coffee Market

Saudi Arabia is undergoing profound economic and social transformation, and coffee is emerging as both a cultural symbol and strategic commercial sector.

Growing Domestic Coffee Production

The country is ambitious about boosting its agricultural capacity. The government aims to increase annual coffee production from 300 tonnes to 2,500 tonnes, enhancing self-sufficiency and creating economic opportunities for coffee-farming regions like Jazan.

Rising Café Footprint and Consumer Demand

As of 2024, there are approximately 3,556 coffee shops in Saudi Arabia, according to the World Coffee Portal. This rapid growth reflects evolving lifestyle habits and a booming hospitality sector.

Saudi Arabia’s Ministry of Culture even declared 2022 the “Year of Saudi Coffee,” emphasizing national pride and the beverage’s cultural prominence.

International Collaboration and Technological Support

Saudi Arabia joined the International Coffee Agreement, facilitating global cooperation, knowledge exchange, and farmer-level support through the International Fund for Agricultural Development (IFAD).

Plans for a “Coffee City” and efforts to achieve UNESCO heritage recognition further reflect the government’s proactive approach.

Local and Global Coffee Brands Expanding

Five of the top 20 coffee chains in the Middle East operate within Saudi Arabia. Local giant Barns, with over 500 stores, is the second-largest chain in the region after Dunkin'.

Major brands—Starbucks, Costa Coffee, Tim Hortons—continue to expand aggressively.

The Saudi Coffee Company is also investing in:

Importing premium beans

Establishing roasting facilities

Opening franchise stores

Training baristas through specialized academies

These developments point to a future where Saudi Arabia becomes a central hub for coffee innovation and culture in the Middle East.

Key Trends Shaping the Saudi Arabia Coffee Industry

May 2024: Saudi Coffee Company received a license from the Royal Commission for Jubail and Yanbu to establish a coffee manufacturing factory in Jazan.

March 2024: Alghanim Industries partnered with the Saudi Coffee Company to promote Jazean, a specialty Saudi coffee brand, across regional and global markets.

July 2024: Gulf Trading Company launched a new product line under the Al Rifai brand, strengthening its presence in coffee and nuts.

September 2023: Saudi Coffee Company introduced its JAZEAN brand emphasizing sustainability and premium-quality Arabica beans.

These developments reinforce the rising visibility and commercial importance of Saudi-grown coffee.

Saudi Arabia Coffee Market Segmentation

By Type

Instant Coffee

Ground Coffee

Whole Bean

Others

By Distribution Channel

Supermarkets & Hypermarkets

Convenience Stores

Online Retail

Others

Company Overview and Competitive Landscape

The Saudi Arabia coffee market features a balance of global giants and strong local players. Companies focus on innovation, new product portfolios, sustainable sourcing, and expanding retail footprints.

Key Players

The J. M. Smucker Company

The Kraft Heinz Company

Nestlé S.A.

Starbucks Coffee Company

Luigi Lavazza S.p.A.

Tata Global Beverages

The Coca-Cola Company

Each player invests strategically in product innovation, distribution channels, and brand positioning to capture the growing Saudi demand for premium and specialty coffee.

Final Thoughts

Saudi Arabia’s coffee market is entering a golden era—one shaped by heritage, youth-driven modernity, and unprecedented government investment. As Gahwa retains its cultural dominance, specialty coffee houses and international brands are redefining consumer expectations. Vision 2030 initiatives provide a solid foundation for the sector's long-term expansion, positioning Saudi Arabia as both a significant consumer and emerging producer in the global coffee world.

With its market set to reach USD 2.27 billion by 2033, the Kingdom is brewing more than just coffee—it is crafting a vibrant economic and cultural narrative around one of its most beloved traditions.