Saudi Arabia Coffee Market Forecast Report by Type, Distribution Channel and Company Analysis 2025-2033

The Saudi Arabian coffee market, worth USD 1.38 billion in 2024, is set to grow significantly, reaching USD 2.27 billion by 2033. This reflects a robust compound annual growth rate of 5.67% over the 2025-2033. The market’s expansion is fueled by coffee's cultural importance, a thriving café culture among younger generations, and government initiatives like the Saudi Coffee Initiative under Vision 2030.

Saudi Arabia Coffee Market Outlooks

Coffee is a brewed beverage primarily extracted from roasted coffee beans obtained from the seeds of the plants. Due to their caffeine content, coffee beverages are characterized by a rich aroma, intense flavor, and stimulating properties. It has significant cultural and social values globally, particularly in the case of Saudi Arabia, because it forms an important part of tradition and hospitality. Known locally as ""Gahwa,"" Saudi coffee is usually prepared with lightly roasted beans and cardamom and other spices served in small cups accompanied by dates during gatherings.

Beverages are part of the cultural heritage of Saudi people, who usually enjoy it on a daily basis. Modern café culture, although driven by urbanization and younger demographics, still finds coexistence with traditional Saudi coffee because of a growing number of specialty coffee shops and international coffee chains. The market retains tradition and innovation by being consumed over everything from heritage-inspired brews to espresso-based drinks. As lifestyles change, the growth in the consumption of coffee is driven by social interaction, heightened awareness of global trends in regard to coffee consumption, and government drive to further develop the food and beverage sector under the Vision 2030.

Driver of Growth for Saudi Arabia Coffee Market

Cultural Significance and Traditional Practices

Coffee is the tradition of Saudi Arabia, and colloquially known as ""Gahwa,"" which reflects national hospitality, respect, and social contact. Traditional coffee, made from lightly roasted beans with cardamom and spices, is very important for family gatherings and cultural events. The continuing use of coffee in this country keeps a steady demand and ensures a major place in life. Events that take place in the country to highlight Saudi traditions increase the sale of coffee. Assisted by government initiatives that preserve and celebrate this heritage, this market is sustained and expanded blending tradition with modern precepts. Torch Coffee Company will join to assist with a plan to plant 1.3 million trees nationwide by 2025. Once the trees come of age, this would quadruple national production with an estimated 40,000 bags by 2028.

Growing Café Culture Among Youths

The main growth driver for specialty coffee in Saudi Arabia is café culture, particularly the adoption of the culture among millennials and Gen Z. Specialty coffee shops and global coffee chains are increasingly being found in the urban cities along with increasing disposable incomes. In Saudi Arabia, the younger population have socialised in cafes, which blend traditional Saudi coffee with international trends like espresso-based drinks and cold brews. The increased penetration of social media and global coffee culture also stimulates consumer demand for specialty coffee experiences. This dynamic café culture transforms the way people consume coffee and fuels growth across the country. As of May 2023, the Saudi population stood at 32.2 million, with 42% foreigners and 63% of its citizens under 30 years, according to the general authority for statistics.

Government Initiatives and Efforts on Vision 2030

The Saudi Vision 2030 document, aimed towards diversification in this economy, also boosts food and beverage. Main concentration areas include the production, trade, and consumption of coffee. The government has initiated activities including the Saudi Coffee Initiative to boost local coffee farming, specifically enhancing specialty coffee production in Jazan regions. Support for small businesses and also coffee houses could further spur growth in the market. These efforts would consequently fortify the coffee industry back at home while encouraging international acknowledgment of Saudi Arabian unique coffee heritage, fostering sustained market growth. Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), established Saudi Coffee Company in May 2022 - investing $319 million over the next ten years to help in the growth of the national coffee industry - from production to consumption.

Future of Saudi Arabia Coffee Market

In an all-around effort at undergoing various social and economic reforms, Saudi Arabia is also positioning itself as a region that produces coffee. This initiative is part of a strategic plan that includes significant investments in developing new sectors. The country has a long-standing coffee-drinking tradition that remains strong today. In recent years, specialty coffee has gained remarkable popularity, contributing to the emergence of a coffee culture akin to that seen in Europe and the United States. As of 2024, the number of coffee shops in Saudi Arabia stands at about 3,556, according to the World Coffee Portal.

The elaborate culture attached to coffee in Saudi has been preserved and is still dominant; therefore, the Saudi Ministry of Culture has proclaimed 2022 as the 'Year of Saudi Coffee'. Over the next decade, the state-backed Saudi Coffee Company is expected to commit $320 million into improving the domestic coffee growing industry. The government plans to raise annual production from 300 tonnes to 2,500 tonnes. To assist this effort, the government is offering technical and financial aid to farmers along with collaborating with international organizations.

As part of this, Saudi Arabia has joined the International Coffee Agreement, which will bring technical support for farmers all over the country in collaboration with the International Fund for Agricultural Development. The Ministry of Agriculture of Saudi Arabica has been helpful in the support for this sector, even signing an agreement for the establishment of a ""coffee city"" and aiding in the inclusion of coffee on the UNESCO list of intangible cultural heritage.

In addition to producing, five of the top 20 coffee chains in the Middle East are found in Saudi Arabia, with the local brand Barns operating over 500 stores and standing as the second-largest chain, after Dunkin' Donuts. Major international coffee brands, including Starbucks, Costa Coffee, and Tim Hortons, continue to expand their presence to answer growing demand. The Saudi Coffee Company aims to exploit this trend by investing in import businesses and roasting operations, coffee shop franchises, and barista training academies throughout the country.

Recent Development in Saudi Arabia Coffee Industry

This month, in May 2024, Khalid Al-Salem, President of the Royal Commission for Jubail and Yanbu, issued a license to the Saudi Coffee Company to open a factory specializing in coffee manufacturing in Jazan, about 600 km south of Jeddah.

In March 2024, Alghanim Industries agreed to a strategic partnership with the Saudi Coffee Company, further championing the specialty coffee brand of the country, Jazean. This move is expected to increase the knowledge and recognition of Saudi Arabia's treasure trove of coffee culture on the international stage.

The Gulf Trading Company added a new product line in July 2024 called ""Al Rifai"" brand that claims to be the leading supplier of coffee and nuts in Saudi Arabia.

In September 2023, the Saudi government-owned Saudi Coffee Company marketed its in-house brand, JAZEAN, which addresses aspects of sustainability while using high-quality Coffea Arabica beans sourced from both Saudi and international markets.

Type- Market is divided into 4 viewpoints

1. Instant Coffee
2. Ground Coffee
3. Whole Grain
4. Others

Distribution Channel- Market is divided into 4 viewpoints

1. Supermarkets and Hypermarkets
2. Convenience Stores
3. Online Retail
4. Others

Company Overview

• Overview
• Key Persons
• Recent Development
• Product Portfolio
• Revenue

Key Players Analysis

1. The J. M. Smucker Company
2. The Kraft Heinz Company
3. Nestle SA
4. Starbucks Coffee Company
5. Luigi Lavazza SPA
6. Tata Global Beverages
7. The Coca-Cola Company