📢 Press Release
Saudi Arabia Coffee Market Forecast Report 2025–2033
By Type (Instant Coffee, Ground Coffee, Whole Grain, Others) | By Distribution Channel (Supermarkets and Hypermarkets, Convenience Stores, Online Retail, Others) | Company Analysis
The Saudi Arabia Coffee Market is poised for remarkable growth, with its size projected to rise from USD 1.38 billion in 2024 to an estimated USD 2.27 billion by 2033, representing a compound annual growth rate (CAGR) of 5.67% during the forecast period. Coffee holds deep-rooted cultural significance in the Kingdom, with traditional consumption patterns evolving alongside a booming café culture, strong youth demographics, and strategic government initiatives such as the Saudi Coffee Initiative under Vision 2030.
🏛 Market Overview: A Blend of Tradition and Modernity
Coffee, or “Gahwa”, is more than just a beverage in Saudi Arabia—it’s a symbol of hospitality, culture, and social bonding. Traditionally prepared with lightly roasted beans and flavored with cardamom, Saudi coffee is an essential part of family gatherings and national identity. Today, Saudi Arabia is undergoing a coffee renaissance—driven by youth-led demand for specialty brews, global café brands expanding rapidly, and government investment in local coffee production and promotion.
📈 Key Market Drivers
🔶 1. Cultural Heritage and Traditional Practices
Saudi coffee continues to thrive thanks to its deep cultural roots. The government’s proclamation of 2022 as the “Year of Saudi Coffee” and efforts to include Saudi coffee in UNESCO’s intangible cultural heritage list reflect strong institutional backing. Traditional coffee remains integral to weddings, religious gatherings, and daily social rituals—ensuring consistent market demand.
🔶 2. Youth-Driven Café Culture
Urbanization, rising disposable incomes, and a youth-heavy demographic (63% under 30 years old as of 2023) are fueling a modern café culture. The number of cafés has surpassed 3,500 nationwide, offering everything from traditional Gahwa to espresso shots and cold brews. Influences from global coffee cultures, paired with the rise of social media and digital branding, are catalyzing consumption across both genders and all age groups.
🔶 3. Vision 2030 & Government-Led Coffee Initiatives
Under Vision 2030, the Saudi Coffee Company (established in 2022) has committed over $319 million over the next decade to scale domestic coffee production from 300 tonnes to 2,500 tonnes annually. This includes:
- Investing in coffee farming in the Jazan region
- Launching barista training academies
- Establishing coffee franchises and roasting operations
In March 2024, a strategic partnership with Alghanim Industries was formed to boost international branding of Jazean, a premium Saudi coffee brand.
🔍 Market Segmentation
By Type
- Instant Coffee – Dominates due to convenience; favored for quick home and office consumption.
- Ground Coffee – Gaining traction in specialty cafés and premium home brews.
- Whole Grain – Traditional Gahwa preparation still relies heavily on whole beans.
- Others – Includes ready-to-drink (RTD), cold brew, and flavor-infused innovations.
By Distribution Channel
- Supermarkets and Hypermarkets – Major sales channels for both domestic and international brands.
- Convenience Stores – Fast-growing due to impulse buys and increased urban accessibility.
- Online Retail – E-commerce boom driven by digital transformation and delivery apps.
- Others – Includes vending machines, petrol stations, and institutional sales (hotels/restaurants).
🏭 Future Market Outlook (2025–2033)
Saudi Arabia is strategically positioning itself as a regional coffee production and innovation hub. Backed by sovereign wealth, climate adaptation, and trade expansion, the country is expected to quadruple its local coffee output. Initiatives like establishing a “Coffee City” in the Jazan region and joining the International Coffee Agreement are aligned with the nation’s agricultural development vision.
This development will:
- Boost exports of Saudi-grown Coffea Arabica
- Reduce dependency on imported beans
- Expand job opportunities in rural regions
- Strengthen international recognition of Saudi coffee
📰 Recent Industry Developments
- May 2024: Saudi Coffee Company received a license to open a coffee factory in Jazan, solidifying the city as a production base.
- March 2024: Partnership between Saudi Coffee Company and Alghanim Industries to promote Jazean coffee internationally.
- July 2024: Gulf Trading Company launched a new premium line under the Al Rifai brand, targeting coffee connoisseurs.
- September 2023: Launch of JAZEAN coffee brand emphasizing sustainability and premium sourcing from Jazan and global regions.
🏢 Competitive Landscape: Key Companies
| Company Name | Key Highlights |
| The J. M. Smucker Company | Offers a wide portfolio of instant and ground coffee products under brands like Folgers. |
| The Kraft Heinz Company | Known for its strong brand Maxwell House; expanding into Middle Eastern markets. |
| Nestlé S.A. | Market leader through its Nescafé and Nespresso brands; deep distribution channels in Saudi Arabia. |
| Starbucks Coffee Company | Operates hundreds of outlets; core player in shaping Saudi youth café culture. |
| Luigi Lavazza S.p.A. | Premium Italian coffee brand making inroads through retail partnerships. |
| Tata Global Beverages | Presence through Eight O’Clock and other brands; entering Saudi Arabia’s premium segment. |
| The Coca-Cola Company | Competes via RTD coffee and cold brews under the Costa Coffee brand. |
🧾 Conclusion
The Saudi Arabia Coffee Market is undergoing a transformative phase—where traditional values are coexisting and thriving alongside rapid modernization and global café culture. Strong government backing, consumer enthusiasm, and an expanding retail footprint make the Kingdom one of the most promising coffee markets in the Middle East.
With Vision 2030 as its compass and global coffee trends as its vehicle, Saudi Arabia is not just consuming more coffee—it is becoming a coffee-producing nation with global ambitions.
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