UAE and KSA’s $1B+ Out-of-Home Coffee Boom in 2024
October is International Coffee Month, highlighting the booming coffee scene in the MENA region. According to the World Coffee Portal, there are approximately 3,556 coffee shops in Saudi Arabia and 8,874 in the UAE as of 2024.
Saudi Arabia's commitment to coffee culture, especially after declaring 2022 the Year of Saudi Coffee, has positioned it as the largest market in the region, representing 40% of all branded coffee outlets. As artisanal and specialty coffee shops continue to rise, understanding consumer preferences for quality and sustainability can set your establishment apart in this thriving market.
Whether you own a café or supply restaurants, this is your chance to capitalize on the growing trend. The coffee market is buzzing, and there are countless opportunities for both cafés and suppliers to jump in and make their mark.
Coffee Consumption in the UAE
In 2024, the UAE will spend $0.92 billion on out-of-home coffee. That's the coffee served at your restaurants, cafés, and bars. If your menu does not capitalize on coffee trends, you may be missing out on significant money. Are you getting involved in this?
Coffee Consumption in Saudi Arabia
Coffee has always been an important part of Saudi culture, and it is now a thriving industry. Out-of-home coffee sales are predicted to total $1.05 billion by the end of 2024. Restaurants have a big chance of attracting coffee connoisseurs seeking traditional Gahwa and current specialty brews.
The rise of micro-roasters and independent coffee shops is changing the coffee scene. These small enterprises prioritize quality, sourcing, and craft. They're popping up everywhere, serving a sophisticated clientele who value distinctive tastes and brewing processes. Are you collaborating with local roasters to offer something unique?
For suppliers, this is an opportunity. Are you offering restaurants with high-quality coffee beans and cutting-edge brewing technology? Saudi Arabia is anticipated to consume 49.81 million kg of coffee by the end of 2024, indicating a strong demand.
Industry Trends You Should Not Ignore
1. Cold brew and nitro coffee
These aren't transitory fads; they're client favorites, especially in hot weather. Is cold brew already on the menu?
2. Speciality Coffee Surge
Consumers want more than just a fast caffeine boost; they want quality. Single-origin beans, fair trade sourcing, and artisanal brewing methods are becoming increasingly popular. Are you prepared to satisfy that demand? Offering unique coffee experiences might help your restaurant stand out.
3. Non-Dairy Options
Health-conscious clients expect more. Almond, oat, and soy milk are no longer optional; they are expected. Is your menu keeping up with the trend towards plant-based options?
4. Sustainability
Customers are more knowledgeable than ever. They care about where their coffee comes from. Suppliers, do you provide beans that are obtained sustainably? Restaurants, are you telling your consumers this story?
5. The Growth of Micro-Roasters
They have an emphasis on local sourcing, distinctive tastes, and small-batch roasting. This trend enables restaurants to provide unique mixtures that cannot be found anywhere else. Are you contemplating collaborating with local roasters to expand your coffee menu?
How to Capitalize on Coffee Trends.
For restaurants, the key is to innovate. Try providing seasonal coffee drinks, such as fruit-infused cold brews in the summer. Highlight the quality of your beans and the attention that went into each cup. Customers will return more frequently if you improve their coffee experience.
Suppliers prioritize variety and quality. Ensure that your customers (restaurants, hotels, and cafés) have access to premium coffee beans, high-end brewing equipment, and the most recent coffee trends, such as nitro brews and cold brew systems. Help them set themselves out in a competitive market.
Future of Coffee in the Middle East
The coffee market in the UAE and Saudi Arabia is rapidly expanding—and not slowing down. By the end of 2024, the UAE will have generated $2.18 billion in coffee income, with Saudi Arabia following closely after with its billion-dollar sector. The typical person's coffee consumption continues to climb, as does the need for improved coffee experiences.
Are you providing your consumers with the most recent coffee trends, or are you sticking with the same old brew? Suppliers, are you keeping your clients ahead of the curve with innovative products?
So, how are you going to celebrate International Coffee Month?
Will you redesign your menu, launch new items, or broaden your supply base? Whatever you do, one thing is certain: coffee is critical to success in the UAE and Saudi Arabian food industries.