Saudi Arabia Coffee Market Set to Reach $2.27 Billion by 2033

According to Renub Research Latest Report Saudi Arabian coffee market is experiencing significant growth, with a market value of USD 1.38 billion in 2024, projected to reach USD 2.27 billion by 2033, reflecting a robust CAGR of 5.67% over the forecast period from 2025 to 2033. The market’s expansion is underpinned by Saudi Arabia’s strong cultural attachment to coffee, a flourishing café culture among younger generations, and government initiatives such as the Saudi Coffee Initiative under Vision 2030.

Coffee in Saudi Arabia is not merely a beverage; it is an integral part of social gatherings, hospitality, and tradition. This combination of heritage, modernization, and government support ensures that the coffee market continues to thrive, embracing both traditional flavors and global specialty coffee trends.

Overview of the Coffee Market in Saudi Arabia

Coffee is a brewed beverage extracted from roasted coffee beans, known for its rich aroma, distinctive flavor, and stimulating caffeine content. In Saudi Arabia, coffee holds immense cultural and social significance, forming a core part of tradition and hospitality. Known locally as "Gahwa," Saudi coffee is traditionally prepared with lightly roasted beans combined with cardamom and other spices. It is often served in small cups accompanied by dates during family gatherings, festivals, or formal occasions.

Modern café culture has emerged alongside these traditions, particularly in urban areas, offering a variety of espresso-based drinks, cold brews, and specialty coffee offerings. Consumers increasingly enjoy both traditional and contemporary coffee experiences, reflecting a blend of heritage and innovation. This dual approach ensures steady demand and positions Saudi Arabia as a growing market for both domestic consumption and international recognition.

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Key Drivers of Market Growth

Cultural Significance and Traditional Practices

Coffee holds a deep-rooted cultural value in Saudi Arabia, representing hospitality, social interaction, and respect. Traditional coffee ceremonies, often served with dates, continue to influence consumer behavior, ensuring consistent demand across households and public events.

Government initiatives play a vital role in sustaining and modernizing the coffee market. For instance, Torch Coffee Company’s plan to plant 1.3 million coffee trees by 2025 could quadruple national production, reaching an estimated 40,000 bags by 2028, reinforcing Saudi Arabia’s position as a coffee producer.

Growing Café Culture Among Youth

Saudi Arabia’s millennial and Gen Z populations are key drivers of specialty coffee consumption. Urbanization, disposable income growth, and exposure to international trends have fueled a thriving café culture. Specialty coffee shops and global chains such as Starbucks, Costa Coffee, and Tim Hortons are increasingly popular in major cities, offering unique experiences that combine traditional coffee with modern trends like cold brews and espresso drinks.

Social media also amplifies the trend, encouraging younger consumers to engage in café experiences that blend lifestyle, social interaction, and culinary exploration. As of 2023, the Saudi population stood at 32.2 million, with 63% under the age of 30, providing a significant market base for growth in specialty coffee consumption.

Government Initiatives and Vision 2030

Saudi Arabia’s Vision 2030 aims to diversify the economy, with a focus on developing the food and beverage sector, including coffee production. The Saudi Coffee Initiative targets specialty coffee cultivation in regions like Jazan, supporting local farmers and small businesses.

The Saudi Coffee Company, backed by the Public Investment Fund (PIF), is investing $319 million over the next ten years to strengthen the domestic coffee industry, covering production, roasting, distribution, and café expansion. These government-led initiatives enhance the country’s global coffee profile, positioning Saudi Arabia as both a consumer and producer of high-quality coffee.

Market Dynamics and Trends

Specialty Coffee Production

Specialty coffee has gained traction in Saudi Arabia, reflecting changing lifestyles and evolving consumer preferences. Domestic production is increasingly emphasized, with initiatives to grow Coffea Arabica beans and establish processing facilities in key regions.

The Ministry of Agriculture, in collaboration with international organizations, is supporting technical assistance, training, and sustainability programs, ensuring that Saudi coffee maintains quality and meets international standards. The establishment of a “coffee city” and inclusion of coffee on the UNESCO intangible cultural heritage list further promote the industry.

Expansion of Coffee Chains

Saudi Arabia hosts five of the top 20 coffee chains in the Middle East, with local brand Barns operating over 500 outlets, second only to Dunkin’ Donuts. International chains continue to expand, tapping into the country’s growing café culture. The Saudi Coffee Company plans to invest in roasting operations, import businesses, franchise development, and barista training academies, ensuring sustained growth.

Government-Supported Production

The Saudi government has declared 2022 as the ‘Year of Saudi Coffee’, promoting heritage and innovation simultaneously. Investments aim to increase annual coffee production from 300 tonnes to 2,500 tonnes by 2033, while supporting farmers with technical and financial assistance.

The International Coffee Agreement further enables Saudi Arabia to receive technical support for local farmers, contributing to the growth of both traditional and specialty coffee markets.

Recent Developments

May 2024: The Saudi Coffee Company opened a factory in Jazan, focusing on local coffee production.

March 2024: Alghanim Industries entered a partnership with the Saudi Coffee Company to expand the Jazean specialty coffee brand.

July 2024: The Gulf Trading Company launched the “Al Rifai” brand, offering premium coffee and nuts.

September 2023: Saudi Coffee Company marketed JAZEAN, focusing on sustainability and high-quality Arabica beans.

These initiatives reflect a strong commitment to innovation, sustainability, and international market presence.

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Market Segmentation

By Type:

Instant Coffee

Ground Coffee

Whole Bean Coffee

Others

By Distribution Channel:

Supermarkets and Hypermarkets

Convenience Stores

Online Retail

Others

By Key Players:

J. M. Smucker Company

Kraft Heinz Company

Nestle SA

Starbucks Coffee Company

Luigi Lavazza SPA

Tata Global Beverages

The Coca-Cola Company

The competitive landscape is marked by strategic partnerships, product launches, and investment in specialty coffee, ensuring strong market growth and differentiation.

Future Outlook

Saudi Arabia is strategically positioning itself as a coffee hub, blending heritage, innovation, and government support. The market’s growth trajectory is driven by:

Continued expansion of specialty coffee production

Investment in café chains and barista training

Government-backed initiatives to enhance local production and global recognition

Rising urbanization and disposable income, fueling café culture and specialty coffee consumption

With Vision 2030 initiatives, Saudi Arabia is creating a robust ecosystem for coffee production, distribution, and retail, positioning itself as a regional leader and global contender in specialty coffee.

Conclusion

The Saudi Arabia coffee market demonstrates strong growth potential, combining cultural heritage, modernization, and government support to shape a dynamic and sustainable industry. Traditional Gahwa practices continue to coexist with a booming café culture, offering both local consumers and international visitors diverse coffee experiences.

Through initiatives like the Saudi Coffee Initiative, investments by the Saudi Coffee Company, and participation in international collaborations, the country is building a comprehensive coffee ecosystem. By 2033, the market is projected to reach USD 2.27 billion, driven by a combination of cultural significance, youth adoption, specialty coffee expansion, and strategic government interventions.

Saudi Arabia’s coffee market exemplifies how tradition and innovation can coexist to create a thriving industry that appeals to both heritage-conscious consumers and modern coffee enthusiasts, positioning the country as a key player in the global coffee landscape.

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