The Middle East is Thirsty for More Coffee

Coffee consumption is on the rise across the Middle East thanks to the growth of key markets such as Saudi Arabia and the United Arab Emirates (UAE), expanding coffee shop networks, and the booming popularity of new segments.

While there may be differing opinions among analysts about the exact size of the Middle East’s coffee market, all studies unanimously confirm one thing – the market is on a consistent and steady growth trajectory.

The Middle East coffee market is projected to reach USD $11.5 billion in 2021 compared with around $10.5 billion in 2021, as reported in Arabian Gulf Business Insight, citing local analysts. The think tank Cognitive Market Research estimated the Middle East coffee market to be $23.8 billion in 2021 and projected it to grow to $26.4 billion by 2025.

Analysts admit that the growth is partly attributed to the upward price rally on the global coffee market, which is driving market value up. This rise is one of the key factors affecting the coffee market in the Middle East, according to
Shoug Bin Redha, director of the World of Coffee exhibition in Dubai. The 5th annual WOC Dubai will take place 18 -20 January 2026.

“We are entering an unprecedented time in the coffee industry and sales, which will affect everyone, from farmers to producers to consumers, with a possibility of a price rise,” Redha said.

Despite ‘caffeine inflation’, the Middle East remains a diverse and rapidly evolving coffee market, driven primarily by Saudi Arabia and the UAE, the region’s wealthiest economies, with a deep coffee culture.

Saudi Arabia has the strongest coffee habits in the region, with one of the highest per-person consumption levels, commented Nandini Roy Choudhury, senior client partner at Future Market Insights. The UAE, in contrast, has
become the leading center for trade and roasting. It now adds value through roasting, training, and re-export, rather than just importing beans.

According to official information, Saudi Arabia consumes approximately 80,000 tonnes of coffee annually. The Saudi coffee market was estimated to be worth over six billion riyals ($142 million) in 2024 ,with an annual growth rate
of approximately seven percent during the last several years. The kingdom imports significant quantities of green coffee beans from countries such as Brazil, Ethiopia, Colombia and Yemen.

“Saudi Arabia is the main growth market [in the Middle East] because of its young population, rising number of women in the workforce, and a growing leisure economy that supports drive-thru cafés and mall outlets,” said Choudhury. She added that the country’s tourism boom, with one million trips in 2024 ,is another factor keeping the demand strong.

In 2024 ,Saudi Arabia welcomed approximately 116 million tourists, a six percent increase from 2023.Under current plans, the figure is projected to reach 150 million visitors by 2030.

The UAE remains the regional trendsetter with dense café networks, a large tourist base, and quick adoption of new products such as ready to-drink coffee. With over 4,000 coffeeshops and specialty cafés, Dubai is now considered the coffee capital of the Middle East.

In recent years, the Dubai Multi Commodities Centre (DMCC) has played a pivotal role in the coffee trade by establishing Dubai as a global coffee hub through its state-of-the-art Coffee Centre, which offers services across the entire value chain. The DMCC Coffee Centre provides infrastructure for green bean storage, processing and roasting, and serves as a strategic connector, linking growers from regions such as Africa and South America with buyers in the Middle East and Europe.

Smaller Gulf countries like Qatar, Kuwait, Bahrain and Oman also offer promise, albeit at a smaller scale. Beyond the Gulf, countries such as Egypt and Lebanon have a long coffee tradition but are more price-sensitive due to weaker currencies and lower household incomes.

“Overall, Gulf consumers can afford premium offerings and design-led cafés, while non Gulf markets remain focused on traditional brewing styles such as Arabic or Turkish coffee,” Choudhury said.

Coffee Shop Market Remains Robust

Despite ongoing inflation, the coffee shop market is on a steady growth trajectory across the region.

For instance, WOC Dubai’s Redha said, the branded coffee shop market in the Middle East grew by 11 percent last year, led by Saudi Arabia, which accounts for 46 percent of the region’s coffee market.

As of November 2025 ,the number of coffee shops across the Middle East has grown to 12,000. Over the next four years, the figure is projected to climb to 16,4000 outlets, with an average annual growth rate of eight percent.

Both local and international coffee chains have been growing in the Middle East over the last few years. Starbucks is aiming to open 500 stores by 2030,while international brands such as %Arabica, Cinnabon, Kyan Café, and Cotti Coffee are also expanding their presence.

Business has been strong for RAW Coffee, a Dubai-based coffee chain company, over the past couple of years. “This period has been one of both growth and intensely hard work for the company,” commented Kim Thompson,
director of culture and brand at RAW Coffee. “We have had great year-on-year growth post Covid, which reflects both the resilience of the specialty coffee market in the Middle East and the strength of our relationships across the
region,” Thompson added.

Several coffee chain brands rolled out ambitious development plans for the coming years.

For example, Saudi Arabia-based coffee chain Barnes has begun taking concrete steps toward an IPO on the Riyadh stock exchange, as part of its
efforts to expand its presence in the Middle East.

Founded in 1982,the chain currently has branches in Saudi Arabia, Bahrain, and Egypt. Partly thanks to the IPO, the company plans to ramp up output from 850 stores in 2025 to 1,000 through development in the markets of the UAE, Oman, Kuwait, and Morocco.

However, the Middle East coffee market is becoming more mature, posing certain challenges for coffee shops.

“I believe it’s important to be realistic about the current landscape – the market is highly competitive and not as large as many assume from the outside,” Thompson said, adding that there is increasing pressure on smaller operators, with many independent cafés closing, a noticeable influx of CVs into the talent pool, and quite a few small businesses up for sale.

“Growth absolutely exists, but it’s becoming more consolidated and more dependent on operational excellence, quality and strong brand fundamentals,” Thompson said. “While Dubai is now famously home to some wild Guinness
records, for both the most expensive cup of coffee and the most expensive green beans ever purchased, I always joke that these headlines sometimes undo years of steady, values-driven work we’ve put into building the specialty coffee movement here. They’re fun stories, but they don’t reflect the real industry or the real effort behind it.”

Thompson added that in general, for companies that stay committed to quality,
transparency, and producer relationships, there are still plenty of meaningful opportunities ahead in this region.

Evolving Coffee Culture

The Middle East coffee market is not only growing but also becoming more diverse and sophisticated, according to market players.

The demand for healthy coffee is increasing as consumers increasingly seek ingredients that enhance bodily functions, such as herbal medicines, collagen, antioxidants, and neurological supplements, as revealed by Khalid Al Mulla, chairman of the board of directors of the UAE chapter of the Specialty Coffee
Association. These products cater to individuals focused on improving their overall health.

“According to the latest research, nearly half of coffee consumers want options that contain antioxidants, brain health boosters, and anti inflammatory agents, and we expect this trend to grow and spread,” said Al Mulla.

Another important trend that consumers across the region are increasingly embracing is cold coffee, as well as other new products. “The increasing demand for cold coffee reflects a shift in consumer preferences towards refreshing flavours and innovative coffee experiences,” Al Mulla said.

In general, he said the number of specialty cafés in the region is increasing annually to meet the growing demand of consumers driven by rising incomes. This trend is widely presented across Gulf countries, including the UAE, Saudi
Arabia, Bahrain, and Kuwait.

However, novel trends are presented somewhat unevenly across the region.

According to FMI’s Choudhury, in the coffee industry, Saudi Arabia represents scale of consumption, the UAE represents speed and innovation, and the rest of the region is growing by finding the right balance between affordability, convenience, and cultural tradition.

New trends are also expected to largely shape the industry’s development across the Middle East over the next few years.

• Vladislav Vorotnikov is a Batumi, Georgia-based multimedia B2B
  freelance journalist writing about the tea and coffee industries
  since 2012.