UAE roasted coffee market report size, share, growth drivers, trends, opportunities & forecast 2025–2030

UAE Roasted Coffee Market Overview

• The UAE Roasted Coffee Market is valued at USD 3.2 billion, based on a five-year historical analysis. This growth is primarily driven by increasing coffee consumption among the population, influenced by a rising café culture, the growing trend of specialty coffee, and the rapid expansion of coffee pods and at-home brewing. The market has seen a surge in demand for premium and specialty coffee products, reflecting changing consumer preferences towards quality, unique flavors, and sustainability-focused offerings.
• Dubai and Abu Dhabi are the dominant cities in the UAE Roasted Coffee Market, primarily due to their status as major urban centers with a high concentration of expatriates and tourists. The vibrant café culture in these cities, coupled with a growing number of specialty coffee shops and international brands, has significantly contributed to the market's expansion. Additionally, the rise of third-wave coffee and digitalized customer experiences further enhances the competitive landscape.
• In 2023, the UAE government implemented regulations to promote sustainable coffee sourcing practices. The “UAE Sustainable Agriculture Standards, 2023” issued by the Ministry of Climate Change and Environment require coffee producers and importers to comply with traceability, environmental stewardship, and minimum sustainability benchmarks. These standards mandate operational transparency, certification for sustainable sourcing, and periodic audits for imported coffee, aiming to enhance coffee quality, support local farmers, and reduce the environmental impact of coffee production.

UAE Roasted Coffee Market Segmentation

By Product Type:The product type segmentation includes categories such as Arabica, Robusta, Blends, Specialty Coffee, Instant Coffee, Coffee Pods & Capsules, Ready-to-Drink Coffee, and Others. Each subsegment caters to distinct consumer preferences and market demands. Arabica coffee is favored for its smooth, mild flavor and aromatic qualities, while Robusta appeals to those seeking a stronger taste and higher caffeine content. Specialty coffee has gained significant traction due to the increasing interest in single-origin beans, artisanal roasting, and unique brewing methods. Coffee pods and capsules are rapidly growing, driven by at-home consumption and convenience.

By End-User:The end-user segmentation encompasses categories including Households, Cafés & Coffee Shops, Restaurants & Hotels (HoReCa), Offices & Institutions, and Others. Households represent a significant portion of the market, driven by the increasing trend of home brewing, investment in coffee machines, and capsule systems. Cafés and coffee shops are crucial, catering to the growing demand for specialty coffee experiences, while HoReCa and offices reflect the broader adoption of premium coffee in hospitality and workplace environments.

UAE Roasted Coffee Market Competitive Landscape

The UAE Roasted Coffee Market is characterized by a dynamic mix of regional and international players. Leading participants such as Al Ain Dairy (Coffee Division), Coffee Planet, RAW Coffee Company, The Espresso Lab, Café Bateel, % Arabica, Nespresso (Nestlé Middle East), Lavazza Middle East, Starbucks UAE (Alshaya Group), Costa Coffee UAE (Emirates Leisure Retail), The Coffee Club UAE, Seven Fortunes Coffee Roasters, Boon Coffee, Gold Box Roastery, Mokha 1450 Coffee Boutique contribute to innovation, geographic expansion, and service delivery in this space.

UAE Roasted Coffee Market Industry Analysis

Growth Drivers

• Increasing Coffee Consumption:The UAE's coffee consumption has surged, with an estimated 2.6 million 60-kilogram bags consumed in future, reflecting a 10% increase from the previous period. This growth is driven by a young, urban population that favors coffee as a lifestyle choice. The World Bank projects that the UAE's GDP will grow by 3.5% in future, further boosting disposable income and coffee spending, which is expected to reach AED 1.3 billion.
• Rise of Specialty Coffee Shops:The number of specialty coffee shops in the UAE has increased by 15% annually, with over 575 establishments reported in future. This trend is fueled by a growing consumer preference for high-quality, artisanal coffee experiences. The UAE's tourism sector, projected to contribute AED 170 billion to the economy in future, enhances the visibility and demand for specialty coffee, attracting both locals and tourists seeking unique coffee experiences.
• Growing Awareness of Health Benefits:A significant 62% of UAE consumers are increasingly aware of coffee's health benefits, such as improved cognitive function and antioxidant properties. This awareness is supported by health campaigns and social media influencers promoting coffee as a healthier beverage choice. The UAE's health and wellness market is expected to reach AED 22 billion in future, further driving coffee consumption as part of a balanced lifestyle.

Market Challenges

• High Competition Among Local Brands:The UAE roasted coffee market is characterized by intense competition, with over 210 local brands vying for market share. This saturation leads to price wars and reduced profit margins, making it challenging for new entrants to establish themselves. The competitive landscape is expected to intensify as consumer preferences shift towards unique offerings, necessitating innovation and differentiation strategies for survival.
• Fluctuating Coffee Bean Prices:Coffee bean prices have shown significant volatility, with a 22% increase in global prices observed in future due to adverse weather conditions in key producing countries. This fluctuation poses a challenge for UAE roasters, who face rising costs that can impact pricing strategies. The International Coffee Organization forecasts continued price instability, which could affect profit margins and consumer pricing in the coming years.

UAE Roasted Coffee Market Future Outlook

The UAE roasted coffee market is poised for dynamic growth, driven by evolving consumer preferences and innovative product offerings. As the demand for specialty and organic coffee rises, brands that prioritize quality and sustainability will likely thrive. Additionally, the integration of technology in coffee brewing and the expansion of e-commerce platforms will enhance accessibility and convenience for consumers. The market is expected to adapt to these trends, fostering a vibrant coffee culture that attracts both local and international consumers.

Market Opportunities

• Emergence of Organic Coffee Products:The organic coffee segment is gaining traction, with sales projected to reach AED 320 million in future. This growth is driven by increasing consumer demand for sustainably sourced products, aligning with the UAE's commitment to environmental sustainability. Brands that invest in organic certifications can tap into this lucrative market, appealing to health-conscious consumers.
• Growth in Coffee Tourism:Coffee tourism is emerging as a niche market, with an estimated 210,000 tourists visiting specialty coffee shops in future. This trend is expected to grow as the UAE positions itself as a coffee destination, offering unique experiences such as coffee tastings and brewing workshops. Collaborations with local cafés can enhance this opportunity, attracting both tourists and locals seeking authentic coffee experiences.