Middle East Ready to Drink Coffee - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2030)
The Middle East Ready to Drink Coffee Market size is estimated at 159.8 million USD in 2024, and is expected to reach 290.5 million USD by 2030, growing at a CAGR of 10.48% during the forecast period (2024-2030).
The warmer climate in the region is driving the demand for ready-to-drink (RTD) cold beverages, including RTD coffee
The popularity of RTD coffee, encompassing products like iced coffee and cold brew, has surged in the Middle East. In 2022, the United Arab Emirates, the region's leading market, consumed USD 60,000 worth of coffee domestically. The convenience and portability of RTD beverages, such as RTD coffee, have made them a hit, particularly among the bustling urban populace. These ready-to-drink options spare consumers the need to grind beans, brew, or clean up, offering a hassle-free coffee experience.
Gen Z consumers show a stronger inclination toward RTD coffee over hot coffee. In response, brands are expanding and diversifying their offerings in the RTD coffee category. Coffee consumption holds cultural significance in the Middle East, and the rising popularity of RTD coffee is largely driven by the diverse preferences of consumers, especially the youth. Consequently, the segment witnessed an impressive value growth rate of 28.51% from 2021 to 2023.
Iced coffee has gained global traction, including in the Middle East, emerging as the favored RTD coffee variant in the region. In 2023, it commanded a significant value share of 27.28%. In the Middle East's hot climate, iced coffee offers a refreshing alternative to its hot counterpart. The market for RTD iced coffee is further fueled by its availability in a range of flavors and formulations, often with added sweetness, enhancing its appeal.
Cold brew coffee is projected to witness the highest growth, with a CAGR of 14.76% by volume from 2024 to 2030. Cold brew's milder and less acidic flavor, compared to traditional coffee, coupled with its refreshing nature, makes it particularly enticing in warmer climates.
Rising demand for special flavors and increasing working population propelling RTD coffee sales in the region
From 2021 to 2023, the Middle East saw a notable 28.5% surge in the value of RTD coffee sales. This uptick was primarily driven by shifting coffee consumption trends, particularly in urban areas. Notably, there was a rising preference for specialty coffees, coinciding with the expansion of popular brew outlets like Barista and Starbucks. In 2023, the United Arab Emirates emerged as the dominant market among Middle Eastern countries, experiencing a 10.83% sales value growth from 2021. This growth can be attributed to the country's sizable urban and working populations, which stood at 8.3 million and 6.6 million, respectively, in 2022, seeking convenient options amidst their busy schedules.
Saudi Arabia, too, is poised for growth, expected to register a CAGR of 8.75% from 2024 to 2030. The government's initiatives and investments aim to bolster coffee consumption by ramping production and creating market entry opportunities. For instance, over the next decade, the state-backed Saudi Coffee Company plans to inject nearly USD 320 million into the domestic coffee-growing industry, targeting a production surge from 300 to 2,500 tonnes annually.
The Rest of Middle East, which includes countries like Bahrain, Iran, Iraq, Turkey, Jordan, and Yemen, is witnessing a rising demand for personalized RTD coffee products, particularly those with lower sugar content, catering to diabetic consumers. This regional segment is projected to experience the highest CAGR of 15.39% in RTD coffee sales from 2024 to 2030, driven by a growing working population and evolving consumer preferences.
Middle East Ready to Drink Coffee Market Trends
Consumers are increasingly seeking products made with natural ingredients owing to their increasing health consciousness
The most common coffee product ordered in Saudi Arabia was the latte, which accounted for 27% of all coffee sales in 2022, followed by hot coffee like cappuccino, americano, espresso, and black coffee, which costs an average of USD 2.6 per 150 ml. Hot chocolate is also famous in the country and costs around USD 3.2 per 150 ml.
Around 35% of consumers in the Middle east region are interested in RTD Coffees that offer functional benefits in addition to energy. Manufacturers in the region are also delivering new products with traditional flavors, and palatable taste ranges will also increase the Saudi Arabia RTD cold brew coffee. Some of the popular RTD coffee flavors include vanilla, mocha, caramel, hazelnut, and others.
Inflation rates have risen slower in both Saudi & the UAE meaning the average prices shoppers are paying and overall spends per trip are both lower in these markets. The price of coffee has significantly increased, and have been hovering at these prices. The average price for RTD coffee, away from home increased from USD 12.07 in 2019 to USD 14.68 in 2023.
Consumers are preferring functional RTD beverages. Ready-to-drink coffee is also one of the functional drinks that is available with proven health benefits. Various types of ready-to-drink coffee are introduced to serve the vast consumer base spread across the Middle East region.
Middle East Ready to Drink Coffee Industry Overview
The Middle East Ready to Drink Coffee Market is fairly consolidated, with the top five companies occupying 89.39%. The major players in this market are Almarai Company, Arla Foods amba, Nestle S.A., The Coca-Cola Company and The Savola Group (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
The warmer climate in the region is driving the demand for ready-to-drink (RTD) cold beverages, including RTD coffee
The popularity of RTD coffee, encompassing products like iced coffee and cold brew, has surged in the Middle East. In 2022, the United Arab Emirates, the region's leading market, consumed USD 60,000 worth of coffee domestically. The convenience and portability of RTD beverages, such as RTD coffee, have made them a hit, particularly among the bustling urban populace. These ready-to-drink options spare consumers the need to grind beans, brew, or clean up, offering a hassle-free coffee experience.
Gen Z consumers show a stronger inclination toward RTD coffee over hot coffee. In response, brands are expanding and diversifying their offerings in the RTD coffee category. Coffee consumption holds cultural significance in the Middle East, and the rising popularity of RTD coffee is largely driven by the diverse preferences of consumers, especially the youth. Consequently, the segment witnessed an impressive value growth rate of 28.51% from 2021 to 2023.
Iced coffee has gained global traction, including in the Middle East, emerging as the favored RTD coffee variant in the region. In 2023, it commanded a significant value share of 27.28%. In the Middle East's hot climate, iced coffee offers a refreshing alternative to its hot counterpart. The market for RTD iced coffee is further fueled by its availability in a range of flavors and formulations, often with added sweetness, enhancing its appeal.
Cold brew coffee is projected to witness the highest growth, with a CAGR of 14.76% by volume from 2024 to 2030. Cold brew's milder and less acidic flavor, compared to traditional coffee, coupled with its refreshing nature, makes it particularly enticing in warmer climates.
Rising demand for special flavors and increasing working population propelling RTD coffee sales in the region
From 2021 to 2023, the Middle East saw a notable 28.5% surge in the value of RTD coffee sales. This uptick was primarily driven by shifting coffee consumption trends, particularly in urban areas. Notably, there was a rising preference for specialty coffees, coinciding with the expansion of popular brew outlets like Barista and Starbucks. In 2023, the United Arab Emirates emerged as the dominant market among Middle Eastern countries, experiencing a 10.83% sales value growth from 2021. This growth can be attributed to the country's sizable urban and working populations, which stood at 8.3 million and 6.6 million, respectively, in 2022, seeking convenient options amidst their busy schedules.
Saudi Arabia, too, is poised for growth, expected to register a CAGR of 8.75% from 2024 to 2030. The government's initiatives and investments aim to bolster coffee consumption by ramping production and creating market entry opportunities. For instance, over the next decade, the state-backed Saudi Coffee Company plans to inject nearly USD 320 million into the domestic coffee-growing industry, targeting a production surge from 300 to 2,500 tonnes annually.
The Rest of Middle East, which includes countries like Bahrain, Iran, Iraq, Turkey, Jordan, and Yemen, is witnessing a rising demand for personalized RTD coffee products, particularly those with lower sugar content, catering to diabetic consumers. This regional segment is projected to experience the highest CAGR of 15.39% in RTD coffee sales from 2024 to 2030, driven by a growing working population and evolving consumer preferences.
Middle East Ready to Drink Coffee Market Trends
Consumers are increasingly seeking products made with natural ingredients owing to their increasing health consciousness
The most common coffee product ordered in Saudi Arabia was the latte, which accounted for 27% of all coffee sales in 2022, followed by hot coffee like cappuccino, americano, espresso, and black coffee, which costs an average of USD 2.6 per 150 ml. Hot chocolate is also famous in the country and costs around USD 3.2 per 150 ml.
Around 35% of consumers in the Middle east region are interested in RTD Coffees that offer functional benefits in addition to energy. Manufacturers in the region are also delivering new products with traditional flavors, and palatable taste ranges will also increase the Saudi Arabia RTD cold brew coffee. Some of the popular RTD coffee flavors include vanilla, mocha, caramel, hazelnut, and others.
Inflation rates have risen slower in both Saudi & the UAE meaning the average prices shoppers are paying and overall spends per trip are both lower in these markets. The price of coffee has significantly increased, and have been hovering at these prices. The average price for RTD coffee, away from home increased from USD 12.07 in 2019 to USD 14.68 in 2023.
Consumers are preferring functional RTD beverages. Ready-to-drink coffee is also one of the functional drinks that is available with proven health benefits. Various types of ready-to-drink coffee are introduced to serve the vast consumer base spread across the Middle East region.
Middle East Ready to Drink Coffee Industry Overview
The Middle East Ready to Drink Coffee Market is fairly consolidated, with the top five companies occupying 89.39%. The major players in this market are Almarai Company, Arla Foods amba, Nestle S.A., The Coca-Cola Company and The Savola Group (sorted alphabetically).
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 EXECUTIVE SUMMARY & KEY FINDINGS
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 KEY INDUSTRY TRENDS
4.1 Consumer Buying Behaviour
4.2 Innovations
4.3 Brand Share Analysis
4.4 Regulatory Framework
5 MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VALUE IN USD AND VOLUME, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
5.1 Soft Drink Type
5.1.1 Cold Brew Coffee
5.1.2 Iced coffee
5.1.3 Other RTD Coffee
5.2 Packaging Type
5.2.1 Aseptic packages
5.2.2 Glass Bottles
5.2.3 Metal Can
5.2.4 PET Bottles
5.3 Distribution Channel
5.3.1 Off-trade
5.3.1.1 Convenience Stores
5.3.1.2 Online Retail
5.3.1.3 Specialty Stores
5.3.1.4 Supermarket/Hypermarket
5.3.1.5 Others
5.3.2 On-trade
5.4 Country
5.4.1 Qatar
5.4.2 Saudi Arabia
5.4.3 United Arab Emirates
5.4.4 Rest of Middle East
6 COMPETITIVE LANDSCAPE
6.1 Key Strategic Moves
6.2 Market Share Analysis
6.3 Company Landscape
6.4 Company Profiles
6.4.1 Al-Othman Group Holding Company
6.4.2 Almarai Company
6.4.3 Anorka Food Industries LLC
6.4.4 Arla Foods amba
6.4.5 National Food Industries Company Ltd.
6.4.6 Nestle S.A.
6.4.7 Rauch Fruchtsдfte GmbH & Co OG
6.4.8 Sapporo Holdings Limited
6.4.9 The Coca-Cola Company
6.4.10 The Kuwaiti Danish Dairy Company
6.4.11 The Savola Group
7 KEY STRATEGIC QUESTIONS FOR SOFT DRINK CEOS
8 APPENDIX
8.1 Global Overview
8.1.1 Overview
8.1.2 Porter’s Five Forces Framework
8.1.3 Market Dynamics (DROs)
8.2 Sources & References
8.3 List of Tables & Figures
8.4 Primary Insights
8.5 Data Pack
8.6 Glossary of Terms
2 REPORT OFFERS
3 INTRODUCTION
3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4 KEY INDUSTRY TRENDS
4.1 Consumer Buying Behaviour
4.2 Innovations
4.3 Brand Share Analysis
4.4 Regulatory Framework
5 MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VALUE IN USD AND VOLUME, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
5.1 Soft Drink Type
5.1.1 Cold Brew Coffee
5.1.2 Iced coffee
5.1.3 Other RTD Coffee
5.2 Packaging Type
5.2.1 Aseptic packages
5.2.2 Glass Bottles
5.2.3 Metal Can
5.2.4 PET Bottles
5.3 Distribution Channel
5.3.1 Off-trade
5.3.1.1 Convenience Stores
5.3.1.2 Online Retail
5.3.1.3 Specialty Stores
5.3.1.4 Supermarket/Hypermarket
5.3.1.5 Others
5.3.2 On-trade
5.4 Country
5.4.1 Qatar
5.4.2 Saudi Arabia
5.4.3 United Arab Emirates
5.4.4 Rest of Middle East
6 COMPETITIVE LANDSCAPE
6.1 Key Strategic Moves
6.2 Market Share Analysis
6.3 Company Landscape
6.4 Company Profiles
6.4.1 Al-Othman Group Holding Company
6.4.2 Almarai Company
6.4.3 Anorka Food Industries LLC
6.4.4 Arla Foods amba
6.4.5 National Food Industries Company Ltd.
6.4.6 Nestle S.A.
6.4.7 Rauch Fruchtsдfte GmbH & Co OG
6.4.8 Sapporo Holdings Limited
6.4.9 The Coca-Cola Company
6.4.10 The Kuwaiti Danish Dairy Company
6.4.11 The Savola Group
7 KEY STRATEGIC QUESTIONS FOR SOFT DRINK CEOS
8 APPENDIX
8.1 Global Overview
8.1.1 Overview
8.1.2 Porter’s Five Forces Framework
8.1.3 Market Dynamics (DROs)
8.2 Sources & References
8.3 List of Tables & Figures
8.4 Primary Insights
8.5 Data Pack
8.6 Glossary of Terms
