Saudi Arabia Coffee Market Forecast to 2028 - COVID-19 Impact and Analysis - by Product Type, Category, and Distribution Channel

The Saudi Arabia coffee market share was valued at US$ 1,575.52 million in 2021 and is projected to reach US$ 2,220.70 million by 2028. It is expected to grow at a CAGR of 5.1% from 2021 to 2028.

Coffee is replacing many traditional beverages as a central part of the modern lifestyle in many regions of Saudi Arabia. Many people from the country are looking for innovative coffee flavors and new tastes to complement traditional styles. In the country, the surge in demand for coffee is due to the increased corporate culture and urbanization. In addition, the rising popularity of cafe culture in the country further promotes the Saudi Arabia coffee market. Specialty coffee is also gaining traction in the country and is likely to grow significantly in the coming years.

Furthermore, Over the past few years, there have been many attempts to increase coffee production in the country. For instance, the Saudi government established Vision 2030 initiative to diversify the country's economy and reduce the country's dependence on oil exports. As part of this initiative, the government of Saudi Arabia launched the Year of Saudi Coffee 2022 campaign to promote domestic coffee consumption. Through this program, the country's government plans to grow around 5,000 tonnes (∼5,511 metric tons) of higher-quality coffee annually and export it at a major scale by 2040.

Further, in May 2022, Saudi Arabia's Public Investment Fund (PIF) launched the Saudi Coffee Company as part of a SAR 1.2 billion (US$ 0.32 billion) investment to develop its national coffee industry and increase production from 300 to 2,500 metric tons annually. Public Investment Fund also aims to develop dedicated academies in Saudi Arabia, where entrepreneurs, coffee plantation owners, and farmers can get the training to help them start their own coffee businesses. Therefore, various initiatives to increase coffee production in Saudi Arabia are expected to offer lucrative opportunities for the growth of the coffee market in the country during the forecast period.

The COVID-19 crisis propelled the e-commerce industry. Online shopping provides a privilege to customers to choose products from the comfort and safety of their own homes, and it has also enabled businesses to operate amid confinement measures due to the pandemic. Moreover, the COVID-19 outbreak has significantly affected the international trade, which hindered the coffee industry. However, due to work-from-home mandates, the at-home consumption trend emerged significantly during the pandemic. People stocked up their pantries during the lockdown. Therefore, the sales of coffee increased. Also, the rising uptake of online shopping for at-home consumption forces retailers, roasters, and consumers to adapt to this new trend, which is expected to propel the growth of the Saudi Arabia coffee market in the country during the forecast period.

Further, in 2021, various economies resumed their operations as the governments relaxed the previously imposed restrictions, bolstering the Saudi Arabia coffee market. Currently, the market situation is better than earlier. Due to all these factors, the coffee market in Saudi Arabia has shown a mixed impact of the COVID-19 pandemic on its growth.

Baja; Brew92; ILLYCAFFè S.P.A.; KIMBO SPA; ZINO DAVIDOFF; Keurig Dr Pepper, Inc.; Luigi Lavazza Spa; Starbucks Corporation; Jacobs Douwe Egberts Gb Ltd.; and Nestle S.A are the key players in the Saudi Arabia Coffee market. These market players are focusing on providing high-quality, innovative products to fulfill customers' demands and increase their market share.

The overall Saudi Arabia coffee market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information about the market. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights into the topic. Participants in this process include industry experts, such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants, such as valuation experts, research analysts, and key opinion leaders, specializing in the Saudi Arabia coffee market.