UAE Coffee Market Synopsis

UAE Coffee Market Size Was Valued at USD 288.10 Million in 2023 and is Projected to Reach USD 340.83 Million by 2030, Growing at a CAGR of 2.43% From 2023-2030.

UAE's coffee market had been experiencing significant growth and transformation, driven by the country's rapidly expanding economy and a growing coffee culture among its residents. The UAE has emerged as a key player in the Middle East's coffee industry, with a thriving market for both traditional Arabic coffee and specialty coffee offerings.

• The coffee market in the UAE is characterized by a diverse range of coffee shops, cafes, and specialty roasters that cater to the diverse tastes of locals and expatriates alike. Local Emirati coffee traditions, such as "gah," coexist with global coffee trends, creating a unique and vibrant coffee scene.
• Major international coffee chains have a strong presence in the UAE, making the country a significant market for global coffee brands. At the same time, the rise of specialty coffee shops and independent roasters has brought a new level of quality and innovation to the coffee offerings in the region.
• UAE's coffee market has experienced significant growth and diversification, reflecting the country's dynamic economy and burgeoning coffee culture. With a blend of traditional coffee traditions and a passion for specialty coffee, the UAE is poised to continue its journey as a key player in the Middle East's coffee industry.

Top Key Players:

"Coffee Planet (UAE), RAW Coffee Company (UAE), Starbucks (USA), Costa Coffee (UK), Tim Hortons (Canada), Dunkin' Donuts (USA), The Coffee Bean & Tea Leaf (USA), Seven Fortunes Coffee Roasters (UAE), Caribou Coffee (USA), Second Cup (Canada), Gloria Jean's Coffees (Australia), Gold Box Roastery (UAE), Nightjar Coffee Roasters (UAE), Lavazza (Italy), Illycaffe (Italy), Nespresso (Switzerland), Peet's Coffee (USA), Julius Meinl (Austria), Tchibo (Germany), Paul (France) and Other Major Players"

UAE Coffee Market Trend Analysis

Economic Prosperity and Urbanization

• The UAE coffee market is growing rapidly due to two main factors: economic prosperity and urbanization. The UAE has one of the highest per capita incomes in the world, and a growing middle class with disposable income to spend on coffee. In addition, the UAE is a rapidly urbanizing country, with more and more people living in cities.
• The UAE is the world's 6th largest coffee importer, and the average UAE coffee drinker consumes 2.5 cups of coffee per day. This means that the UAE coffee market is significant.
• The UAE coffee market is worth billion, this is a significant market, and it is expected to continue to grow in the coming years. The growth of the UAE coffee market is being driven by several factors, including economic prosperity, urbanization, and the increasing popularity of coffee among young people., and it is expected to continue to grow in the coming years.

Tourist-Focused Offerings in the UAE

• The UAE is a popular tourist destination, and the coffee market is no exception. Coffee shops and cafes in the UAE can tap into a large and growing market by catering to tourists. This could include offering traditional Arabic coffee, coffee drinks from other cultures, unique coffee drinks with flavors such as cardamom, saffron, or rose water, traditional Emirati pastries, live music, or cultural performances.
• Arabic coffee is an important part of Emirati culture, and tourists are often interested in trying it. Coffee shops and cafes that offer traditional Arabic coffee can attract more tourists and boost their sales. In addition to traditional Arabic coffee, coffee shops could also offer coffee drinks from other cultures, such as Turkish coffee, Greek coffee, or Italian espresso.
• In addition to offering unique coffee drinks, coffee shops, and cafes could also offer other tourist-focused offerings. This could include traditional Emirati pastries, such as baklava or halwa. Coffee shops could also offer live music or cultural performances.

UAE Coffee Market Segment Analysis

UAE’s Coffee Market is Segmented into the Form, Speciality Coffee, Flavors, Distribution Channel, and End-Users. By Forms, the Ground Coffee segment is Anticipated to Dominate the Market Over the Forecast Period.

• Ground coffee is dominating the UAE coffee market. This is due to several factors, including the convenience of ground coffee, its relatively low price, and the fact that it is widely available in supermarkets and other retail outlets.
• Ground coffee is more popular among coffee drinkers who prefer to have more control over the brewing process. It is also a popular choice for cafes and restaurants, as it can be used to make a variety of coffee drinks. Ground coffee is also a good option for home brewing, as it can be stored for a longer period than instant coffee.
• The ground coffee segment is expected to continue to grow in the coming years, as more people become interested in learning about and experimenting with different types of coffee. Ground coffee is also a good option for businesses that want to offer a variety of coffee drinks to their customers.

(Source: Statista)

The UAE coffee machine market experienced fluctuations in average revenue from 2018 to 2022. The initial figure of 29.93 million USD in 2018 declined to 28.38 million USD in 2019, followed by a further decrease to 26.33 million USD in 2020. However, the market showed signs of recovery in 2021, reaching 28.24 million USD. By 2022, the average revenue settled at 26.39 million USD. These variations in revenue reflect the changing dynamics of the UAE coffee market and the varying demand for coffee machines during this five-year period, which could have been influenced by economic factors, technological advancements, and shifting consumer preferences.

UAE Coffee Market Country Analysis

• The UAE is dominating the coffee market because it has a high per capita income, a growing middle class, and a rapidly urbanizing population. This means that there is a lot of disposable income available to spend on coffee, and there is a growing demand for coffee shops and cafes where people can socialize and enjoy a cup of coffee.
• Coffee is becoming increasingly popular in the UAE, especially among young people. This is due to the growing awareness of the health benefits of coffee, the increasing availability of different types of coffee, and the growing number of coffee shops and cafes in the country.
• The UAE is home to over 1,000 coffee shops and cafes, which offer a wide variety of coffee drinks to choose from. This makes it easy for people to find a coffee shop or cafe that meets their needs, and it also helps to drive the demand for coffee in the UAE.

COVID-19 Impact Analysis on the UAE Coffee Market

• The COVID-19 pandemic has had a significant impact on the UAE coffee market. The initial lockdown led to a decline in sales as coffee shops and cafes were forced to close. However, the market has since started to recover, and sales are expected to reach pre-pandemic levels in the coming years.
• One of the most significant impacts of COVID-19 on the UAE coffee market has been the rise of online sales. As people were forced to stay home, they turned to online retailers to purchase their coffee. This trend is expected to continue in the coming years, as more and more people prefer to shop online.
• The COVID-19 pandemic has also led to an increase in demand for single-serve coffee. This type of coffee is convenient and easy to prepare, making it a popular choice for people who are working from home or who are on the go.

Top Key Players Covered in The UAE Coffee Market

• Coffee Planet (UAE)
• RAW Coffee Company (UAE)
• Starbucks (USA)
• Costa Coffee (UK)
• Tim Hortons (Canada)
• Dunkin' Donuts (USA)
• The Coffee Bean & Tea Leaf (USA)
• Seven Fortunes Coffee Roasters (UAE)
• Caribou Coffee (USA)
• Second Cup (Canada)
• Gloria Jean's Coffees (Australia)
• Gold Box Roastery (UAE)
• Nightjar Coffee Roasters (UAE)
• Lavazza (Italy)
• Illycaffe (Italy)
• Nespresso (Switzerland)
• Peet's Coffee (USA)
• Julius Meinl (Austria)
• Tchibo (Germany)
• Paul (France) and Other Major Players

Key Industry Developments in the UAE Coffee Market

In July 2023, Click Coffee, a Russian-based coffee company, introduced an innovative autonomous coffee concept in the UAE. Click Coffee, a pioneering Russian autonomous coffee shop concept, has expanded its presence into the Middle East with the launch of its first unit at the Dubai headquarters of Etisalat, a major telecommunications giant. Since its establishment in 2018, Click Coffee has successfully operated nine fully-autonomous, smart robotic coffee shops across Russia.

In May 2023, For the second consecutive year, Nespresso UAE reaffirmed its collaboration with the Michelin Guide as the official coffee partner. Nespresso, renowned for its premium portioned coffee, is delighted to announce its ongoing partnership as the Official Coffee Partner with the prestigious Michelin Guide Dubai 2023. This collaboration marks the second consecutive year that Nespresso has joined forces with the renowned gastronomy guide, underscoring its unwavering dedication to quality, consistency, and innovation in taste.