Saudi Arabia Coffee Market Size and Forecast 2025–2033

According to Renub Research Saudi Arabia coffee market is poised for consistent expansion over the forecast period, reflecting the country’s deep-rooted coffee traditions alongside rapid modernization of consumer lifestyles. Valued at USD 1.38 billion in 2024, the market is projected to reach USD 2.27 billion by 2033, growing at a compound annual growth rate (CAGR) of 5.67% from 2025 to 2033. This growth is driven by the cultural significance of coffee, a fast-growing café culture among younger consumers, and strong government-backed initiatives under Vision 2030 aimed at strengthening the domestic coffee ecosystem.

Coffee consumption in Saudi Arabia is not only a daily habit but also a symbol of hospitality, social bonding, and national identity. The coexistence of traditional Saudi coffee practices with modern specialty coffee trends has created a unique and dynamic market landscape.

Overview of the Coffee Market in Saudi Arabia

Coffee is a brewed beverage made from roasted coffee beans and is widely appreciated for its aroma, flavor, and stimulating properties due to its caffeine content. In Saudi Arabia, coffee holds exceptional cultural and social value. Known locally as “Gahwa,” Saudi coffee is traditionally prepared using lightly roasted beans infused with cardamom and sometimes cloves or saffron. It is typically served in small cups alongside dates during social gatherings, family visits, and ceremonial occasions.

Coffee is deeply integrated into daily life across Saudi society. While traditional consumption remains dominant, the rise of urbanization, globalization, and changing consumer preferences has given way to a thriving modern café culture. International coffee chains, independent specialty cafés, and artisanal roasters now coexist with heritage-inspired coffee traditions, creating a diversified consumption environment.

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Cultural Significance and Traditional Coffee Practices

Cultural heritage is one of the strongest drivers sustaining coffee demand in Saudi Arabia. Serving coffee is considered a gesture of respect and hospitality, deeply embedded in social customs. Gahwa is central to weddings, religious events, and formal meetings, ensuring steady and consistent consumption across generations.

Government-led cultural initiatives aimed at preserving Saudi heritage have further reinforced coffee’s role in society. National festivals, heritage exhibitions, and tourism campaigns regularly highlight Saudi coffee traditions, supporting both domestic consumption and international recognition. These cultural foundations provide long-term stability to the Saudi coffee market, even as consumer preferences evolve.

Expanding Café Culture Among Youth and Urban Consumers

One of the most influential growth drivers in the Saudi coffee market is the rapid expansion of café culture, particularly among millennials and Generation Z. Urban centers such as Riyadh, Jeddah, and Dammam have witnessed a surge in specialty coffee shops offering premium experiences, global brewing techniques, and modern café environments.

Younger consumers increasingly view cafés as social hubs for networking, studying, and leisure. Exposure to international trends through social media and travel has boosted demand for espresso-based beverages, cold brews, and specialty roasts. The blending of traditional Saudi flavors with international coffee styles has transformed consumption patterns and accelerated market growth.

Demographic Advantage Supporting Market Expansion

Saudi Arabia’s youthful population structure significantly supports coffee market growth. A large proportion of the population is under the age of 30, with rising disposable income and evolving lifestyle preferences. This demographic shift has increased demand for premium beverages, café experiences, and convenient coffee formats such as instant and ready-to-drink products.

The growing expatriate population also contributes to diversified coffee consumption patterns, introducing global coffee preferences and boosting demand for international brands. These demographic dynamics ensure sustained growth across both traditional and modern coffee segments.

Government Initiatives Under Vision 2030

Government support plays a pivotal role in shaping the future of the Saudi coffee market. Under Vision 2030, Saudi Arabia aims to diversify its economy and strengthen non-oil sectors, including food and beverages. Coffee has been identified as a strategic product due to its cultural importance and economic potential.

Initiatives such as the Saudi Coffee Initiative focus on developing local coffee farming, improving quality standards, and promoting Saudi-grown coffee globally. Significant investments have been made to enhance production, processing, roasting, and distribution infrastructure. These efforts are designed to reduce reliance on imports while building a competitive domestic coffee industry.

Role of the Saudi Coffee Company in Market Development

A major milestone in the industry was the establishment of Saudi Coffee Company, backed by the Public Investment Fund. The company aims to invest heavily across the coffee value chain, from farming and sourcing to roasting, branding, and retail expansion.

The Saudi Coffee Company’s long-term strategy includes increasing domestic production, supporting farmers with technical expertise, and promoting Saudi coffee brands internationally. These investments are expected to significantly strengthen the local coffee ecosystem and enhance market resilience.

Development of Domestic Coffee Production

Saudi Arabia is positioning itself as a coffee-producing nation, particularly in the Jazan region, which offers favorable climatic conditions for coffee cultivation. Government-backed programs provide financial incentives, modern farming techniques, and international collaboration to improve yields and quality.

Ambitious targets have been set to increase annual production volumes significantly over the next decade. Technical assistance from international agricultural organizations and participation in global coffee agreements further support the development of sustainable and high-quality domestic coffee production.

Rising Number of Coffee Shops and Retail Outlets

The Saudi coffee market has benefited from a rapid increase in the number of coffee shops across the country. Thousands of cafés operate nationwide, ranging from local independent outlets to international franchises. This expansion reflects strong consumer demand and a supportive business environment.

Local brands have gained prominence alongside global chains, offering culturally inspired menus and localized experiences. The competitive retail landscape has improved product availability, enhanced service quality, and increased overall coffee consumption.

Growing Presence of International Coffee Chains

Saudi Arabia hosts several major international coffee brands that continue to expand their footprint to meet rising demand. Companies such as Starbucks Coffee Company, Costa Coffee, and Tim Hortons have established strong retail networks across major cities.

These brands benefit from brand recognition, standardized quality, and strong marketing strategies. Their presence has also elevated consumer expectations and contributed to the professionalization of the Saudi café industry.

Future Outlook of the Saudi Arabia Coffee Market

The future of the Saudi coffee market appears highly promising. With sustained government support, cultural preservation efforts, and rising consumer demand, the market is expected to grow steadily through 2033. Specialty coffee, premium blends, and locally sourced products are anticipated to gain greater market share.

Saudi Arabia’s efforts to position coffee as part of its national identity, combined with investments in production and branding, will further strengthen the industry. The country’s ambition to become a recognized coffee origin adds a unique dimension to future market opportunities.

Key Trends Shaping the Saudi Coffee Industry

Recent developments highlight the momentum within the Saudi coffee sector. New manufacturing facilities, strategic partnerships, and product launches demonstrate increasing industry maturity. Investments in sustainability, barista training, and quality assurance reflect a shift toward premiumization.

The introduction of locally branded specialty coffees and increased export ambitions signal Saudi Arabia’s intention to compete in the global coffee market while preserving its unique heritage.

Saudi Arabia Coffee Market Segmentation by Type

The market is segmented by type into instant coffee, ground coffee, whole grain coffee, and others. Instant coffee remains popular due to convenience, while ground and whole bean coffee are gaining traction among specialty coffee consumers seeking freshness and customization.

Premium whole bean coffee is increasingly preferred by cafés and home brewers, supporting higher-value market segments.

Saudi Arabia Coffee Market Segmentation by Distribution Channel

Distribution channels include supermarkets and hypermarkets, convenience stores, online retail, and others. Supermarkets and hypermarkets dominate due to wide product availability and competitive pricing. Online retail is growing rapidly, supported by digital adoption and home delivery services.

Specialty coffee shops and cafés also play a significant role in shaping consumption trends and introducing new products.

Competitive Landscape and Key Players

The Saudi coffee market features a mix of global corporations and regional brands. Key players operating in the market include The J. M. Smucker Company, The Kraft Heinz Company, Nestlé SA, Luigi Lavazza S.p.A., Tata Consumer Products, and The Coca-Cola Company.

These companies focus on product innovation, branding, and distribution expansion to strengthen their market presence.

Conclusion and Long-Term Market Potential

The Saudi Arabia coffee market stands at the intersection of tradition and transformation. Strong cultural roots ensure stable demand, while modern café culture, government investment, and demographic advantages drive future growth. With sustained focus on quality, sustainability, and innovation, Saudi Arabia is well-positioned to emerge as both a major consumer and an emerging producer in the global coffee industry.

As Vision 2030 initiatives continue to unfold, the coffee market is expected to remain a vital contributor to the country’s food and beverage sector, offering long-term growth opportunities for domestic and international stakeholders alike.