Saudi Arabia Cafes Market Segmented, By Ownership (Standalone Cafes, Chained Cafes), By Chained Cafes (Domestic, International), By Distribution Channel (Retail Sales, Online), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Saudi Arabia Cafes market was valued at USD 6.14 Billion in 2024 and is expected to grow to USD 9.87 Billion by 2030 with a CAGR of 8.23%. The Saudi Arabia Cafes market is experiencing steady growth, primarily driven by a young and dynamic population seeking modern and social dining experiences. With over 60% of the population under the age of 30, there is a strong demand for trendy, comfortable spaces to socialize, work, and relax. Urbanization and rising disposable incomes have also fueled this demand, as consumers increasingly adopt global coffee and café culture. Government reforms under Vision 2030, including support for the Saudi Coffee Initiative, have further encouraged café expansion by promoting local coffee production and entrepreneurship in the food and beverage sector. The easing of social norms and a growing preference for lifestyle-oriented consumption are also contributing significantly to the café market’s expansion across urban and secondary cities in the Kingdom.

Key Market Drivers

Rapid Urbanization & Changing Lifestyles

Rapid urbanization and changing lifestyles are key drivers of the Saudi Arabia cafés market. As a part of this, according to a recent study, as of 2023, the annual urban population growth in Saudi Arabia increased by 0.2 percentage points (+13.07 percent). As cities expand and modern infrastructure develops, there is a growing demand for social spaces that align with contemporary consumer preferences. Urban dwellers, especially younger generations, are increasingly drawn to cafés as venues for leisure, work, and social interaction. This shift is further fueled by rising disposable incomes and exposure to global café culture, leading to greater acceptance of out-of-home dining and coffee consumption. Also, the fast-paced urban lifestyle has boosted the appeal of quick, casual dining options, making cafés a convenient and attractive choice. The proliferation of digital platforms and food delivery apps also complement this trend, allowing cafés to reach a broader audience. Overall, the blend of urban growth and lifestyle transformation is reshaping consumer behavior and accelerating the expansion of the café industry across Saudi Arabia’s major and emerging cities.

Increased Coffee Consumption Across the Region

Increased coffee consumption across the region is a major driver of the Saudi Arabia cafés market. As a part of this, according to a recent study, as of 2024, Saudi Arabia is positioned among the top 10 highest coffee-consuming countries, with demand exceeding 80,000 tonnes per year. Coffee holds deep cultural significance in the Kingdom, with traditional Arabic coffee, or "Gahwa," being a symbol of hospitality. However, recent years have seen a surge in the popularity of specialty and international coffee varieties, particularly among younger consumers. This shift has led to the rapid expansion of modern cafés catering to evolving tastes. Rising awareness of global coffee trends, increased travel, and exposure to international brands have all contributed to the growing demand. Also, the government's Saudi Coffee Initiative aims to position the country as a global player in coffee production, further fueling interest in both local and international coffee experiences. As consumers increasingly view coffee as both a social and lifestyle beverage, the café sector is expanding to meet this demand across urban and semi-urban areas in Saudi Arabia.

Social and Cultural Liberalization

Social and cultural liberalization is a significant driver of the growing cafés market in Saudi Arabia. Reforms under the Vision 2030 initiative have relaxed many traditional restrictions, enabling a more open and inclusive public environment. These changes have encouraged the development of mixed-gender social spaces, fostering the rise of modern cafés as popular gathering spots for both social and professional interactions. Women’s increased participation in the workforce and public life has further expanded the customer base for cafés. Also, entertainment venues, events, and tourism developments have created more opportunities for café visits, integrating coffee culture into daily routines. The liberalization has also sparked a wave of entrepreneurship in the food and beverage sector, with both local and international café brands capitalizing on the changing social dynamics. This cultural shift has made cafés an essential part of the evolving lifestyle and leisure landscape across Saudi Arabia.

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Key Market Challenges

Intense Competition Among Major Players

Intense competition among major players presents a significant challenge in the Saudi Arabia cafés market. As the sector rapidly expands, both international brands and local chains are aggressively vying for market share. Established global names such as Starbucks, Tim Hortons, and Dunkin’ face increasing rivalry from emerging Saudi brands and specialty cafés that cater to evolving consumer tastes. This competitive environment has led to pricing pressures, frequent promotional campaigns, and the need for continuous innovation in menu offerings and customer experience. Also, the growing number of cafés in prime urban locations has saturated some areas, making it difficult for new entrants to secure strategic sites. Franchise operations are also becoming more complex, as brands must maintain quality and consistency while scaling quickly. To succeed in this crowded landscape, players must differentiate themselves through branding, customer loyalty programs, and localized service strategies that resonate with Saudi consumers.

High Operating Cost

High operating costs present a major challenge for the cafés market in Saudi Arabia. Rent for commercial spaces, especially in prime urban locations, can be prohibitively expensive, significantly impacting profit margins. In addition, many cafés rely on imported coffee beans, specialty ingredients, and premium equipment, which adds to overall costs due to import duties and logistics. Hiring and retaining skilled baristas and staff also requires competitive salaries and benefits, further increasing operational expenses. Utility costs, particularly for air-conditioned environments and high-tech café setups, contribute to ongoing financial burdens. For smaller or newly established cafés, these overheads make it difficult to compete with large international chains that benefit from economies of scale. As price sensitivity among consumers remains a factor, maintaining affordability while covering high costs becomes a delicate balancing act. Ultimately, managing expenses efficiently is crucial for long-term sustainability and success in the increasingly competitive Saudi café landscape.

Key Market Trends

Rise of Specialty Coffee

The rise of specialty coffee is reshaping the café landscape in Saudi Arabia, driven by a younger, more discerning consumer base. Traditional coffee holds deep cultural significance in the Kingdom; however, there's a growing preference for high-quality, ethically sourced beans and innovative brewing techniques. Specialty cafés are increasingly offering single-origin brews, cold brews, and signature blends, often prepared using advanced equipment and presented with unique flavor profiles. This trend is complemented by the government's efforts to promote local coffee production, particularly in regions like Jazan, known for its Arabica coffee cultivation. As  a part of this, as of November 2023, The Public Investment Fund (PIF)-owned Saudi Coffee Company has unveiled plans to establish a model farm spanning one million square meters in Jazan, southern Saudi Arabia. This strategic initiative aims to enhance the cultivation of Coffea Arabica, a globally recognized coffee variety native to the region, and underscores the company's commitment to advancing local coffee production and supporting the Kingdom's broader agricultural and economic diversification goals.. As a result, specialty coffee is becoming a significant segment in the Kingdom's evolving café culture.

Rising Popularity of Arabica Coffee

Arabica coffee is rapidly gaining popularity in Saudi Arabia, owing to the growing preference of Arabica’s smoother, sweeter flavor profile, higher lipid content, and lower bitterness compared to other coffee varieties like Robusta. Also, its higher acidity enhances the taste experience, pairing well with wines and chocolates, which has boosted its demand in the food and beverage industry. The southwestern regions of Saudi Arabia, particularly Jazan, Aseer, and Al-Baha, offer ideal climatic conditions for Arabica coffee cultivation, contributing to the local production of high-quality beans. Traditional coffee varieties like Khawlani have been cultivated for centuries in these areas, deepening the country’s coffee heritage. The Saudi government is also supporting local Arabica coffee production through initiatives like the Saudi Coffee Initiative, aligning with Vision 2030’s broader economic diversification goals.

Growing Adoption of Digital Platforms and Food Delivery Apps

The growing adoption of digital platforms and food delivery apps is significantly transforming Saudi Arabia's café market. With the increasing use of smartphones and a shift toward digital convenience, consumers are now more inclined to order coffee and café products online. Food delivery services have become an integral part of the café ecosystem, allowing businesses to expand their reach beyond physical locations and cater to a broader customer base. Major food delivery apps enable customers to explore a wide range of offerings, from specialty coffee to local favorites, with ease. Also, the rise of cloud kitchens, which operate solely for delivery without a physical storefront, has further streamlined operations for cafés, allowing them to focus on efficient food preparation and delivery. This digital transformation is reshaping consumer behavior and driving the growth of the café industry in Saudi Arabia.

Segmental Insights

Distribution Channel Insights

Retail Sales dominated the Saudi Arabia Cafes market, primarily driven by the rapid expansion of café chains and increased consumer demand for convenient, high-quality coffee experiences. The proliferation of international and local coffee brands across malls, high streets, and urban centers significantly contributed to the surge in retail sales. Rising disposable incomes, shifting consumer lifestyles, and a growing café culture—particularly among the youth—have further fueled market growth. Also, the trend of socializing in aesthetically appealing cafés has elevated foot traffic and spending at physical outlets. The government's support for entrepreneurship and tourism also encouraged new café openings, boosting retail sales. These factors collectively positioned retail outlets as the primary revenue generator in the Saudi café landscape.

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Regional Insights

Northern & Central dominated the Saudi Arabia Cafes market, due to its strategic location, which includes major cities like Riyadh, the capital, and Mecca. Riyadh, as the political and economic hub, sees high foot traffic from both locals and international visitors, making it a prime location for café establishments. Also, the Central region benefits from a growing urban population, increasing disposable income, and evolving consumer preferences for modern café experiences. The presence of numerous shopping malls, business districts, and entertainment venues further drives the demand for cafés in this area. Social and cultural factors also contribute, as cafés serve as popular spots for socializing and business meetings, making the Central region the focal point of the country's café industry. Also, the Western region's is driven by its unique blend of cultural heritage, economic activity, and tourism. Home to the holy cities of Mecca and Medina, the region attracts millions of pilgrims each year, creating a high demand for cafés that offer both local and international coffee experiences. The region's vibrant and diverse population, which includes residents from various cultural backgrounds, fosters a dynamic café scene that caters to a wide range of tastes.

Recent Developments

• In February 2024, Café Barbera, the renowned Italian coffee brand with a legacy spanning over 150 years, has unveiled plans to expand into Saudi Arabia at Gulfood 2024. This strategic market entry is facilitated through a partnership with Big Apple Sweets LLC, a leading foodservice operator based in the UAE.
• In October 2023, Barn’s, a prominent Saudi Arabian coffee chain, has revealed its plans for international expansion, with a target of opening 1,000 stores worldwide by 2030. Established in 1992 by the Al Amjaad Group, Barn’s currently operates over 430 locations across Saudi Arabia, positioning itself as the Kingdom’s second-largest coffee chain, trailing only behind US-based Dunkin’.

Key Market Players  

• Dunkin Donuts
• Barn's
• Starbucks
• Tim Hortons
• Costa Coffee
• Mochachino
• Derby Coffee
• dr.CAFE COFFEE
• Café Bateel
• Molten Chocolate Café

Report Scope:

In this report, the Saudi Arabia Cafes Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•   Saudi Arabia Cafes Market, By Ownership:

o   Standalone Cafes

o   Chained Cafes

• Saudi Arabia Cafes Market, By Chained Cafes:

o   Domestic

o   International

• Saudi Arabia Cafes Market, By Distribution Channel:

o   Retail Sales

o   Online

• Saudi Arabia Cafes Market, By Region:

o   Eastern

o   Western

o   Northern & Central

o   Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Saudi Arabia Cafes Market.

Available Customizations:

Saudi Arabia Cafes Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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