UAE Coffee Pods Market - Forecasts from 2023 to 2028

The UAE coffee pods market is projected to grow at a CAGR of 7.57% over the forecast period, increasing from US$96.678 million in 2021 to US$161.094 million by 2028.

The growing number of retail coffee shops and the thriving travel and tourism are the key reasons behind the sector's expansion. In addition, technological advancements related to equipment and blends are driving the market growth. In the United Arab Emirates, demand for speciality coffee is on the rise, driven by the wider selection of certified coffee products, availability of niche and sophisticated coffee varieties, innovative experiential concepts, and in-store roasting facilities. Furthermore, coffee is known to be a better alternative to carbonated soda drinks, as a result, the government took additional steps to increase duty on soft drinks being more sugared.

Growth drivers for the UAE coffee pods market

The expansion of coffee chains and the UAE's position as a key regional and global trade hub has made coffee products more accessible to consumers. The country's large and diverse expatriate population and tourists around the globe have also contributed to the heightened demand for various types of coffee. This has led to increased investments in premium coffee retail shops. Recently, Kuwait-based franchisee Pinnacle Group opened the first Toby’s Estate outlet in the UAE. Coffee chainssuch as Starbucks, and Tim Hortonsboth have three outlets at the venue, with other coffee operators includingCosta Coffee, The Coffee Club, Peet’s Coffee, andDunkin’, as well as domestic brandsCoffee Planetand Common Grounds.

Increased demand due to travel and tourism

In 2022, the contribution of the travel and tourism sector to the UAE’s GDP was nearly AED167 billion which is equivalent to 9% of the total GDP. In the same year, the total spending of international tourists amounted to AED 117.6 billion. Moreover, the number of hotels in the UAE has increased to 1189, while the hotel capacity in the country reached 203,000 hotel rooms. Given figures indicate an increased number of tourists and their willingness to spend in the nation.

About 25.2 million people visited the kingdom last year. With high duty on soft drinks and the exotic nature of speciality coffee in UAE, the demand has surged in the coffee pod market. In January 2022, Dubai ran, the first-ever World of Coffee (WoC) Dubai, Event was which attracted more than 6,600 attendees. Additionally, there is also a growing trend towards health and wellness, which is likely to be a significant factor in new product development, particularly concerning instant standard coffee and instant coffee mixes. As a result, more manufacturers are expected to offer healthier versions of coffee products. As a result of all these factors, there is an increased visibility and demand for coffee products in the UAE.

The growing popularity of flavored coffee pods in the nation

Market producers are currently attempting to develop coffee pods that are flavored owing to the changing consumer preferences. Hence, the market for flavored coffee pods in the UAE is expected to grow gradually throughout the forecasted time frame. A wide range of flavours and mixes, together with the assurance of consistently high-quality coffee, have also won over customers seeking a customized coffee experience. Their appeal is further fueled by the fact that they are less wasteful and time-consuming than traditional brewing techniques, and they allow consumers to taste speciality and premium coffees without the need for expensive equipment.

Growing urbanization and a growing working population is the major factor fueling the flavored coffee pods market in UAE owing to changing consumer preference. According to the CIA, the major urban area population, in 2023, is 3.008 million in Dubai, 1.567 million in Abu Dhabi (capital), and Sharjah 1.831 million. To further raise the standard of living of its residents, the UAE is anticipated to take several ground-breaking and fascinating actions.

Key market players focus on product innovation

The Coffee Planet website, Amazon, Noon, and many supermarkets in the United Arab Emirates, such as Carrefour, Spinneys, Waitrose, and Choithrams, are online retailers offering coffee pods. Furthermore, Nespresso offers Inizio in UAE. This mix of Arabica from Kenya and Ethiopia has a silky, smooth body that is strengthened and given warmth by its rich toasted cereal flavor. Decaffeinated and with the same delightful scent as Melozio, Melozio Decaffeinato is a harmonic combination of Latin American Arabicas. Furthermore, the decaffeinated Colombian Arabica in Fortado Decaffeinato's Indian Robusta is intense, with aromas of chocolate and oak wood remaining prominent.

Moreover, to savor the strong and energising flavour of Mylivapordubalae's MYLÉ V4 Pods Iced Coffee Flavour is offered by Myle Dubai. Four disposable MYLÉ Vape pods with an Iced Coffee Flavour are included in this set. Each pod is lovingly packed. These magnetic pods, which supply 5% or 2% nicotine by volume each pod, are made to make vaping smooth. Each 0.9 mL pod contains superior Salt Nicotine (SaltNic) Ejuice, making them ideal for those looking for a strong nicotine dose. With over 240 puffs per pod, this flavor perfectly captures the rich, robust aroma of iced coffee with every draw. This makes for a long-lasting and fulfilling vaping experience.

Segmentation:

By Type

• Hard Pods
• Soft Pods

By Caffeine Content

• Regular
• Decaffeinated

By Flavour

• Regular
• Flavored

By Distribution Channel

• Online
• Offline