Executive Summary

Mar 2019
PROSPECTS
Stronger economic growth sees coffee consumption rebound

Consumption of coffee decreased in recent years, due to the effect on the economy – and thus consumer spending – of lower international oil prices. However, with the help of austerity measures and the implementation of VAT, the Saudi economy pulled itself out of an economic slowdown in 2017 and 2018.

Young population driving the trend for speciality coffee and flavours

As travelling abroad continues to become more affordable, and social media penetration among young Saudis continues to rise, demand for international speciality brands and flavours at home in Saudi Arabia is expected to continue to rise in the forecast period. Although disposable incomes have decreased over the past few years, brought about by lower oil prices and a rising cost of living, a large portion of Saudis remain willing to spend on new coffee experiences, as they enjoy leisure time at neighbourhood coffee shops and cafés.

Rise in cafés expected to continue to increase on-trade volume

Over the past few years, the number of cafés and coffeehouses has risen, with key players such as Starbucks Coffee, Dr Café and Java Time having increased their presence across the country. In addition, new independently owned cafés have popped up in malls and shopping centres in many neighbourhoods.

COMPETITIVE LANDSCAPE
Nestlé SA maintains its leading position in coffee in 2018

Nestlé SA maintained its leading position in coffee in 2018, ahead of Al Soukya International in second place and El Farouki Coffee Center in third. Nestlé SA continues to benefit from its flagship brand of instant standard coffee, Nescafé, which is available in a variety of formats, including Red Label, Gold, My Cup 2-in-1 and Nescafé 3-in-1 instant mixes.

New international players create fiercer competition in the off-trade

In the latter part of the review period, coffee saw increased competition in the off-trade, as new players and brands entered the market. At the end of 2017, Lavazza Coffee Ltd and Jacobs Douwe Egberts each launched new instant coffee brands in an effort to increase their sales in instant mixes.

Instant mixes continue to gain popularity among consumers

Instant coffee mixes continue to grow in popularity, owing to their convenience and ease of preparation. Both young and middle-aged consumers are seeking easier ways to prepare coffee for gatherings and social events, instead of the time-consuming traditional method of preparing Arabic or fresh ground coffee, which typically takes 30 minutes to an hour to prepare in a coffee maker or boil on the range top.

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Coffee in Saudi Arabia

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Overview

Discover the latest market trends and uncover sources of future market growth for the Coffee industry in Saudi Arabia with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Coffee industry in Saudi Arabia, our research will save you time and money while empowering you to make informed, profitable decisions.

The Coffee in Saudi Arabia market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Coffee in Saudi Arabia?
  • What are the major brands in Saudi Arabia?
  • How significant is vending in coffee distribution?
  • How does the increasing number of speciality coffee shops impact retail sales of coffee?
  • How are coffee pods performing in Saudi Arabia?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Hot Drinks market research database.

Coffee in Saudi Arabia - Category analysis

HEADLINES

PROSPECTS

Stronger economic growth sees coffee consumption rebound
Young population driving the trend for speciality coffee and flavours
Rise in cafés expected to continue to increase on-trade volume

COMPETITIVE LANDSCAPE

Nestlé SA maintains its leading position in coffee in 2018
New international players create fiercer competition in the off-trade
Instant mixes continue to gain popularity among consumers

CATEGORY DATA

Table 1 Retail Sales of Coffee by Category: Volume 2013-2018
Table 2 Retail Sales of Coffee by Category: Value 2013-2018
Table 3 Retail Sales of Coffee by Category: % Volume Growth 2013-2018
Table 4 Retail Sales of Coffee by Category: % Value Growth 2013-2018
Table 5 Retail Sales of Fresh Ground Coffee Pods by Hard vs Soft: % Volume 2013-2018
Table 6 NBO Company Shares of Coffee: % Retail Value 2014-2018
Table 7 LBN Brand Shares of Coffee: % Retail Value 2015-2018
Table 8 Forecast Retail Sales of Coffee by Category: Volume 2018-2023
Table 9 Forecast Retail Sales of Coffee by Category: Value 2018-2023
Table 10 Forecast Retail Sales of Coffee by Category: % Volume Growth 2018-2023
Table 11 Forecast Retail Sales of Coffee by Category: % Value Growth 2018-2023

Hot Drinks in Saudi Arabia - Industry Overview

EXECUTIVE SUMMARY

Hot drinks continues to benefit from health and wellness trend
Ease and convenience a key trend in driving hot drinks
Emerging new international players increase fragmentation
Modernised versions of traditional flavours lead new product development in 2018
Hot drinks to continue to witness a good performance

MARKET DATA

Table 12 Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2013-2018
Table 13 Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2013-2018
Table 14 Retail Sales of Hot Drinks by Category: Volume 2013-2018
Table 15 Retail Sales of Hot Drinks by Category: Value 2013-2018
Table 16 Retail Sales of Hot Drinks by Category: % Volume Growth 2013-2018
Table 17 Retail Sales of Hot Drinks by Category: % Value Growth 2013-2018
Table 18 Foodservice Sales of Hot Drinks by Category: Volume 2013-2018
Table 19 Foodservice Sales of Hot Drinks by Category: % Volume Growth 2013-2018
Table 20 Total Sales of Hot Drinks by Category: Total Volume 2013-2018
Table 21 Total Sales of Hot Drinks by Category: % Total Volume Growth 2013-2018
Table 22 NBO Company Shares of Hot Drinks: % Retail Value 2014-2018
Table 23 LBN Brand Shares of Hot Drinks: % Retail Value 2015-2018
Table 24 Penetration of Private Label in Hot Drinks by Category: % Retail Value 2013-2018
Table 25 Retail Distribution of Hot Drinks by Format: % Volume 2013-2018
Table 26 Retail Distribution of Hot Drinks by Format and Category: % Volume 2018
Table 27 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2018-2023
Table 28 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2018-2023
Table 29 Forecast Retail Sales of Hot Drinks by Category: Volume 2018-2023
Table 30 Forecast Retail Sales of Hot Drinks by Category: Value 2018-2023
Table 31 Forecast Retail Sales of Hot Drinks by Category: % Volume Growth 2018-2023
Table 32 Forecast Retail Sales of Hot Drinks by Category: % Value Growth 2018-2023
Table 33 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2018-2023
Table 34 Forecast Foodservice Sales of Hot Drinks by Category: % Volume Growth 2018-2023
Table 35 Forecast Total Sales of Hot Drinks by Category: Total Volume 2018-2023
Table 36 Forecast Total Sales of Hot Drinks by Category: % Total Volume Growth 2018-2023

SOURCES

Summary 1 Research Sources

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