Saudi Arabia Coffee Market Brews Tradition and Modern Growth

Introduction

Coffee in Saudi Arabia is more than just a drink—it is a centuries-old tradition woven into the nation’s social fabric. Known as Gahwa in Arabic, coffee is served at homes, social gatherings, and cultural ceremonies as a sign of hospitality. But in recent years, the industry has expanded far beyond tradition. Fueled by a young population, government initiatives, and rising café culture, According to Renub Research Recent Report Saudi Arabia Coffee Market is projected to surge from US$3.12 billion in 2024 to US$5.55 billion by 2033, growing at a CAGR of 6.53% during 2025–2033.

This transformation reflects a fascinating blend of heritage and modernity, positioning Saudi Arabia not only as a leading consumer market but also as a potential production hub under Vision 2030.

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Market Overview

Saudi coffee culture represents a unique duality—deep respect for tradition and rapid adoption of international coffeehouse trends. On one hand, Arabic coffee remains integral to daily life, especially in family gatherings and formal hospitality. On the other, global influences and a growing youth population have created strong demand for specialty coffee, café chains, and innovative blends.

Today, coffee shops are among the most dynamic segments of Saudi Arabia’s food and beverage industry. International brands like Starbucks and Costa Coffee coexist with local chains such as Barn’s and Café Bateel, reflecting a competitive yet thriving landscape.

Growth Drivers

1. Deep Cultural Roots

Arabic coffee remains central to Saudi traditions. Brewed with cardamom and served in elegant dallahs, it is a symbol of generosity and respect. The continued popularity of Arabic coffee ensures a strong foundation for the overall market.

2. Young and Urban Consumers

Saudi Arabia has a youth-heavy demographic with over 60% of the population under 35. This group is driving café culture, social coffee drinking, and demand for premium and specialty coffee experiences.

3. Vision 2030 and Government Initiatives

The government has made coffee a strategic cultural and economic priority. Under Vision 2030, the Saudi Coffee Company (backed by the Public Investment Fund) has pledged to invest SAR 1.2 billion over the next decade to boost domestic coffee production and processing. The aim is to cultivate, process, and market Saudi-grown beans globally.

4. Café Culture and Lifestyle Shifts

Coffee shops are now lifestyle hubs in urban Saudi Arabia. With increasing disposable incomes, Saudis are embracing café-hopping, specialty brews, and premium roasts, making this one of the fastest-growing retail sectors.

5. Tourism and International Exposure

With Saudi Arabia opening its doors to global tourism, coffee is also becoming a soft power tool. Tourists are introduced to Arabic coffee traditions, while international trends like cold brews, flavored coffee, and ready-to-drink (RTD) beverages are entering the local market.

Market Trends

Specialty Coffee Boom

Specialty coffee is gaining traction, with micro-roasteries, artisanal brands, and coffee festivals booming across the kingdom. Young Saudis are particularly attracted to high-quality single-origin beans and unique brewing techniques.

E-Commerce and Subscription Models

Coffee subscriptions and online sales have accelerated, especially post-pandemic. Consumers now order premium beans, pods, and equipment online, fueling a growing digital coffee economy.

Sustainability Focus

As consumers become more environmentally conscious, brands are highlighting sustainable sourcing, recyclable packaging, and ethical trade practices.

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Market Segmentation

By Type

Arabica Coffee – Dominates due to its smoother flavor and use in Arabic coffee traditions.

Robusta Coffee – Preferred for instant and blended products.

Specialty & Flavored Coffee – Fastest-growing segment, appealing to younger consumers and premium markets.

By Distribution Channel

On-Trade (Cafés, Hotels, Restaurants) – Major growth driver, with café chains proliferating in urban centers.

Off-Trade (Retail, Supermarkets, Online) – Growing steadily, supported by rising household consumption and online convenience.

Regional Insights

Western Saudi Arabia (Makkah, Jeddah, Medina)

This region leads in café culture, attracting both locals and pilgrims. Jeddah is particularly known as a hub for coffee chains and specialty shops.

Central Region (Riyadh and Surroundings)

Riyadh is the fastest-growing coffee market, thanks to rapid urbanization, international exposure, and government-led business expansions.

Eastern Province

Known for its expatriate population, the Eastern region has a vibrant mix of global coffee influences and local traditions.

Competitive Landscape

Saudi Arabia’s coffee market is increasingly competitive, with both international giants and local champions fighting for dominance.

Local Players: Barn’s, Café Bateel, and Arabian Coffee Roasters are expanding aggressively.

International Chains: Starbucks, Dunkin’, and Costa Coffee continue to expand outlets in urban centers.

Saudi Coffee Company: Positioned to transform the sector by promoting domestic bean production and aiming to place Saudi coffee on the global map.

The competition is not just about presence but also about differentiation—through unique flavors, premium experiences, loyalty programs, and digital engagement.

Challenges

Import Dependence – Despite production initiatives, Saudi Arabia still imports most of its coffee, making it vulnerable to global price fluctuations.

Health Concerns – Rising health awareness has led some consumers to cut back on sugar-heavy coffee beverages.

High Competition – The influx of new cafés means that differentiation and customer loyalty are harder to maintain.

Future Outlook

The Saudi coffee market’s future looks exceptionally bright. By 2033, the industry is expected to nearly double in value, thanks to:

Expansion of specialty coffee and premium retail.

The rise of Saudi-grown beans, giving the kingdom an export opportunity.

Growing digital sales and e-commerce penetration.

Increasing role of coffee festivals and cultural branding, turning coffee into a national identity symbol.

Saudi Arabia is likely to emerge as both a coffee powerhouse in consumption and a credible producer, creating a balance between cultural heritage and modern business growth.

Conclusion

Coffee in Saudi Arabia is no longer just about tradition—it is about transformation. The combination of cultural pride, modern consumer trends, and strategic government investments is pushing the Saudi coffee market into a new era. By 2033, with a projected valuation of US$5.55 billion, the sector will stand as one of the most dynamic in the Middle East.

From the traditional Gahwa served in ornate pots to the cold brews crafted in Riyadh cafés, Saudi Arabia’s coffee journey symbolizes its broader economic vision: preserving heritage while embracing global modernity.

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