Saudi Arabia Premium Coffee Retail Market Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

The Saudi Arabia Premium Coffee Retail Market, valued at USD 1.2 billion, is growing due to rising demand for high-quality coffee, specialty shops, and sustainable practices.

Region:Middle East

Author(s):Shubham

Product Code:KRAB7455

Pages:83

Published On:October 2025

About the Report

Base Year 2024

Saudi Arabia Premium Coffee Retail Market Overview

  • The Saudi Arabia Premium Coffee Retail Market is valued at USD 1.2 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing consumer preference for high-quality coffee, the rise of specialty coffee shops, and a growing café culture among the youth. The market has seen a significant shift towards premium products, reflecting a broader trend of consumers willing to pay more for quality and unique flavors.
  • Key cities such as Riyadh, Jeddah, and Dammam dominate the market due to their large populations, urbanization, and a vibrant café culture. Riyadh, as the capital, serves as a central hub for coffee consumption, while Jeddah's coastal lifestyle promotes a strong café scene. Dammam's growing economy and expatriate population further contribute to the demand for premium coffee products.
  • In 2023, the Saudi government implemented regulations to promote sustainable coffee sourcing and production practices. This initiative aims to enhance the quality of locally produced coffee and reduce environmental impacts, encouraging retailers to adopt eco-friendly practices and support local farmers, thereby fostering a more sustainable coffee industry.
Saudi Arabia Premium Coffee Retail Market Size

Saudi Arabia Premium Coffee Retail Market Segmentation

By Type:The market is segmented into various types of coffee products, including Whole Bean Coffee, Ground Coffee, Instant Coffee, Coffee Pods and Capsules, Specialty Coffee Blends, Organic Coffee, and Others. Among these, Whole Bean Coffee and Specialty Coffee Blends are particularly popular due to the growing trend of home brewing and the demand for unique flavor profiles. Consumers are increasingly seeking high-quality, artisanal products that offer a premium experience.

Saudi Arabia Premium Coffee Retail Market segmentation by Type.

By End-User:The end-user segmentation includes Households, Cafés and Restaurants, Offices and Workplaces, and Retail Outlets. Households represent a significant portion of the market as more consumers are investing in premium coffee for home brewing. Cafés and Restaurants are also crucial, as they drive the demand for high-quality coffee experiences, particularly among younger demographics who frequent these establishments.

Saudi Arabia Premium Coffee Retail Market segmentation by End-User.

Saudi Arabia Premium Coffee Retail Market Competitive Landscape

The Saudi Arabia Premium Coffee Retail Market is characterized by a dynamic mix of regional and international players. Leading participants such as Al Masah Coffee, Starbucks Coffee Company, Al-Hokair Group, Nespresso, Lavazza, Illycaffè, Costa Coffee, Dunkin' Donuts, Tim Hortons, Café Najjar, Coffee Planet, Caffè Nero, Caribou Coffee, Peet's Coffee, Specialty Coffee Association of Saudi Arabia contribute to innovation, geographic expansion, and service delivery in this space.

Al Masah Coffee

2005

Riyadh, Saudi Arabia

Starbucks Coffee Company

1971

Seattle, USA

Al-Hokair Group

1975

Riyadh, Saudi Arabia

Nespresso

1986

Lausanne, Switzerland

Lavazza

1895

Turin, Italy

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Revenue Growth Rate

Customer Retention Rate

Market Penetration Rate

Average Order Value

Pricing Strategy

Saudi Arabia Premium Coffee Retail Market Industry Analysis

Growth Drivers

  • Increasing Consumer Demand for Specialty Coffee:The Saudi Arabian coffee market is witnessing a surge in consumer demand for specialty coffee, with sales reaching approximately SAR 1.5 billion. This growth is driven by a shift in consumer preferences towards high-quality, artisanal coffee experiences. The World Bank projects that the country's population will grow to 36 million, further expanding the customer base for premium coffee products. This demographic shift is expected to enhance the market's growth trajectory significantly.
  • Growth of Coffee Culture and Cafés:The proliferation of coffee shops in Saudi Arabia has contributed to a vibrant coffee culture, with over 1,200 cafés operating in major cities. This trend is supported by the Saudi Vision 2030 initiative, which aims to diversify the economy and promote local businesses. The increasing number of cafés is not only enhancing consumer access to premium coffee but also fostering a community around coffee consumption, thereby driving market growth.
  • Rising Disposable Incomes:With a projected GDP growth rate of 3.1%, Saudi Arabia's rising disposable incomes are significantly impacting consumer spending on premium products. The average household income is expected to reach SAR 15,000 monthly, allowing consumers to allocate more funds towards luxury items like specialty coffee. This increase in purchasing power is likely to boost the demand for premium coffee, as consumers seek higher-quality options and unique experiences.

Market Challenges

  • High Competition Among Retailers:The premium coffee retail market in Saudi Arabia is characterized by intense competition, with over 200 established brands vying for market share. This saturation leads to price wars and reduced profit margins, making it challenging for new entrants to establish themselves. As of now, the top five brands account for nearly 40% of the market, indicating a concentrated competitive landscape that poses significant barriers to entry for smaller players.
  • Fluctuating Coffee Bean Prices:The volatility in global coffee bean prices poses a significant challenge for retailers in Saudi Arabia. Currently, coffee bean prices fluctuate between SAR 15 and SAR 25 per kilogram, influenced by factors such as climate change and supply chain disruptions. This unpredictability can lead to increased operational costs for retailers, impacting their pricing strategies and overall profitability in the premium coffee segment.

Saudi Arabia Premium Coffee Retail Market Future Outlook

The Saudi Arabia premium coffee retail market is poised for continued growth, driven by evolving consumer preferences and a burgeoning coffee culture. As disposable incomes rise, consumers are increasingly willing to invest in high-quality coffee experiences. Additionally, the integration of technology in retail, such as mobile ordering and personalized marketing, is expected to enhance customer engagement. The market will likely see innovative product offerings and sustainable practices gaining traction, aligning with global trends towards ethical consumption and environmental responsibility.

Market Opportunities

  • Growth in Online Coffee Sales:The expansion of e-commerce platforms presents a significant opportunity for premium coffee retailers. With online sales projected to reach SAR 500 million, businesses can tap into a broader customer base. This shift towards online shopping is driven by convenience and the increasing use of digital payment methods among consumers, allowing retailers to enhance their market reach effectively.
  • Introduction of Innovative Coffee Products:There is a growing opportunity for retailers to introduce innovative coffee products, such as ready-to-drink beverages and unique flavor blends. The demand for cold brew and nitro coffee has surged, with sales increasing by 30%. By diversifying product offerings, retailers can attract new customers and cater to evolving tastes, thereby enhancing their competitive edge in the market.

Scope of the Report

SegmentSub-Segments
By Type

Whole Bean Coffee

Ground Coffee

Instant Coffee

Coffee Pods and Capsules

Specialty Coffee Blends

Organic Coffee

Others

By End-User

Households

Cafés and Restaurants

Offices and Workplaces

Retail Outlets

By Sales Channel

Online Retail

Supermarkets and Hypermarkets

Specialty Coffee Shops

Convenience Stores

By Price Range

Premium

Mid-Range

Budget

By Packaging Type

Bags

Cans

Boxes

By Flavor Profile

Fruity

Nutty

Chocolatey

Spicy

By Region

Central Region

Eastern Region

Western Region

Southern Region

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Saudi Food and Drug Authority, Ministry of Commerce)

Manufacturers and Producers

Distributors and Retailers

Hospitality Industry Stakeholders (e.g., Hotels, Cafés)

Importers and Exporters

Packaging and Supply Chain Companies

Market Analysts and Industry Experts

Players Mentioned in the Report:

Al Masah Coffee

Starbucks Coffee Company

Al-Hokair Group

Nespresso

Lavazza

Illycaffe

Costa Coffee

Dunkin' Donuts

Tim Hortons

Cafe Najjar

Coffee Planet

Caffe Nero

Caribou Coffee

Peet's Coffee

Specialty Coffee Association of Saudi Arabia

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Saudi Arabia Premium Coffee Retail Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Saudi Arabia Premium Coffee Retail Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Saudi Arabia Premium Coffee Retail Market Analysis

3.1 Growth Drivers

3.1.1 Increasing Consumer Demand for Specialty Coffee
3.1.2 Growth of Coffee Culture and Cafés
3.1.3 Rising Disposable Incomes
3.1.4 Expansion of E-commerce Platforms

3.2 Market Challenges

3.2.1 High Competition Among Retailers
3.2.2 Fluctuating Coffee Bean Prices
3.2.3 Regulatory Compliance Costs
3.2.4 Limited Awareness of Premium Products

3.3 Market Opportunities

3.3.1 Growth in Online Coffee Sales
3.3.2 Introduction of Innovative Coffee Products
3.3.3 Expansion into Untapped Regions
3.3.4 Collaborations with Local Farmers

3.4 Market Trends

3.4.1 Increasing Popularity of Cold Brew and Nitro Coffee
3.4.2 Rise of Sustainable and Ethical Sourcing
3.4.3 Growth of Subscription Coffee Services
3.4.4 Integration of Technology in Coffee Retail

3.5 Government Regulation

3.5.1 Food Safety Standards
3.5.2 Import Tariffs on Coffee Beans
3.5.3 Licensing Requirements for Retailers
3.5.4 Health Regulations for Food and Beverage

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Saudi Arabia Premium Coffee Retail Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Saudi Arabia Premium Coffee Retail Market Segmentation

8.1 By Type

8.1.1 Whole Bean Coffee
8.1.2 Ground Coffee
8.1.3 Instant Coffee
8.1.4 Coffee Pods and Capsules
8.1.5 Specialty Coffee Blends
8.1.6 Organic Coffee
8.1.7 Others

8.2 By End-User

8.2.1 Households
8.2.2 Cafés and Restaurants
8.2.3 Offices and Workplaces
8.2.4 Retail Outlets

8.3 By Sales Channel

8.3.1 Online Retail
8.3.2 Supermarkets and Hypermarkets
8.3.3 Specialty Coffee Shops
8.3.4 Convenience Stores

8.4 By Price Range

8.4.1 Premium
8.4.2 Mid-Range
8.4.3 Budget

8.5 By Packaging Type

8.5.1 Bags
8.5.2 Cans
8.5.3 Boxes

8.6 By Flavor Profile

8.6.1 Fruity
8.6.2 Nutty
8.6.3 Chocolatey
8.6.4 Spicy

8.7 By Region

8.7.1 Central Region
8.7.2 Eastern Region
8.7.3 Western Region
8.7.4 Southern Region

9. Saudi Arabia Premium Coffee Retail Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Revenue Growth Rate
9.2.4 Customer Retention Rate
9.2.5 Market Penetration Rate
9.2.6 Average Order Value
9.2.7 Pricing Strategy
9.2.8 Brand Recognition Score
9.2.9 Product Diversification Index
9.2.10 Supply Chain Efficiency

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Al Masah Coffee
9.5.2 Starbucks Coffee Company
9.5.3 Al-Hokair Group
9.5.4 Nespresso
9.5.5 Lavazza
9.5.6 Illycaffè
9.5.7 Costa Coffee
9.5.8 Dunkin' Donuts
9.5.9 Tim Hortons
9.5.10 Café Najjar
9.5.11 Coffee Planet
9.5.12 Caffè Nero
9.5.13 Caribou Coffee
9.5.14 Peet's Coffee
9.5.15 Specialty Coffee Association of Saudi Arabia

10. Saudi Arabia Premium Coffee Retail Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Commerce
10.1.2 Ministry of Health
10.1.3 Ministry of Education

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in Coffee Shops
10.2.2 Expenditure on Coffee Equipment
10.2.3 Budget for Marketing and Promotions

10.3 Pain Point Analysis by End-User Category

10.3.1 Quality Consistency
10.3.2 Supply Chain Disruptions
10.3.3 Pricing Volatility

10.4 User Readiness for Adoption

10.4.1 Awareness of Premium Coffee
10.4.2 Willingness to Pay for Quality
10.4.3 Access to Specialty Coffee

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Customer Feedback Mechanisms
10.5.2 Repeat Purchase Rates
10.5.3 Expansion into New Markets

11. Saudi Arabia Premium Coffee Retail Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Value Proposition Development

1.3 Revenue Streams Analysis

1.4 Customer Segmentation

1.5 Key Partnerships

1.6 Cost Structure

1.7 Channels of Distribution


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs

2.3 Target Audience Identification

2.4 Marketing Channels

2.5 Promotional Activities


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-ups

3.3 Logistics and Supply Chain Management

3.4 Distribution Partnerships


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands Analysis

4.3 Competitor Pricing Strategies

4.4 Consumer Price Sensitivity


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments

5.3 Product Development Opportunities

5.4 Market Entry Strategies


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service

6.3 Customer Engagement Strategies

6.4 Feedback Mechanisms


7. Value Proposition

7.1 Sustainability Initiatives

7.2 Integrated Supply Chains

7.3 Quality Assurance

7.4 Customer-Centric Approach


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding Initiatives

8.3 Distribution Setup

8.4 Training and Development


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Activity Planning
15.2.2 Milestone Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of market reports from local and international coffee associations
  • Review of government publications on agricultural exports and imports
  • Examination of consumer behavior studies and market trends in premium coffee consumption

Primary Research

  • Interviews with key stakeholders in the coffee supply chain, including importers and distributors
  • Surveys targeting coffee shop owners and managers to understand purchasing patterns
  • Focus groups with consumers to gauge preferences and willingness to pay for premium coffee

Validation & Triangulation

  • Cross-validation of findings with industry reports and expert opinions
  • Triangulation of data from consumer surveys and sales data from retail outlets
  • Sanity checks through expert panel reviews comprising coffee industry veterans

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total coffee consumption in Saudi Arabia and segmentation by premium coffee
  • Analysis of import data to determine the volume of premium coffee entering the market
  • Incorporation of demographic trends and urbanization effects on coffee consumption

Bottom-up Modeling

  • Collection of sales data from leading premium coffee retailers and cafes
  • Estimation of average spend per consumer on premium coffee products
  • Volume x price analysis to derive revenue figures for the premium coffee segment

Forecasting & Scenario Analysis

  • Multi-factor regression analysis incorporating economic indicators and consumer trends
  • Scenario modeling based on potential changes in consumer preferences and market dynamics
  • Baseline, optimistic, and pessimistic forecasts for premium coffee market growth through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Premium Coffee Retailers100Store Managers, Franchise Owners
Consumer Preferences150Coffee Enthusiasts, Regular Consumers
Importers and Distributors80Supply Chain Managers, Business Development Executives
Café and Restaurant Owners70Operations Managers, Beverage Directors
Market Analysts and Experts50Industry Analysts, Coffee Consultants

Frequently Asked Questions

What is the current value of the Saudi Arabia Premium Coffee Retail Market?

The Saudi Arabia Premium Coffee Retail Market is valued at approximately USD 1.2 billion, reflecting a significant growth trend driven by consumer preferences for high-quality coffee and the rise of specialty coffee shops.

What factors are driving the growth of the premium coffee market in Saudi Arabia?

Which cities are the main hubs for premium coffee consumption in Saudi Arabia?

What types of coffee products are popular in the Saudi Arabia Premium Coffee Retail Market?

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