Saudi Arabia Cafes Market 2028: Expected Growth, Industry Size and Share
The rising number of female entrepreneurs, growing tourism, and increasing international brands are propelling the growth of Saudi Arabia Cafés market.
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According to TechSci Research report, “Saudi Arabia Cafés Market - Industry Size, Share, Trends, Competition, Opportunities and Forecast, 2018-2028F” The Saudi Arabia Cafés market is expected to grow during the forecast period. The main factors influencing the market for cafés in Saudi Arabia are the rising per capita income, rising tourist numbers, expanding western influence, changing consumer preferences and tastes, the rapid expansion of café services, rising numbers of young adults and working population, and social and cultural changes. Additionally, the market for online café services has grown significantly as a result of substantial technology advancements that made it easier to establish an online platform and improved consumer convenience. A significant element in the market's expansion in Saudi Arabia throughout the period has been the younger population, particularly millennials, who are increasingly using online café services.
Due to increased exposure to western food through the internet and social media, consumers’ tastes, and preferences are changing, and there is a growing demand for cafés across the nation. This is pushing the major market participants to plan and grow their chain outlets, strengthening their grip on the Saudi Arabia cafés market over the course of the projected year.
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The state and commercial initiatives to diversify the tourist base and the reasons people travel to Saudi Arabia are transforming the country's tourism business. According to the Saudi Central Bank (commonly known as SAMA), the total amount spent on tourism in Saudi Arabia by both domestic and foreign visitors increased by 52% from USD16.88 billion in the previous year to USD25.5 billion in 2021.
To boost annual visitor numbers, which fuel market growth, the Kingdom of Saudi Arabia is planning several tourism and entertainment projects as part of Saudi Vision 2030, including the Red Sea Project, a new Formula 1 racing circuit in Qiddiya, a six flags theme park, and various new movie theatres. Millions of pilgrims traveling because of the presence of well-known Hajj sites in Mecca & Medina in the country have also boosted tourism and contributed to the growth of the coffee market in Saudi Arabia over the anticipated period.
The Saudi Arabia café market is categorized by ownership, chained cafés, by sales channel, by region, and by company. In terms of ownership, the Saudi Arabia cafés market is segmented into Chained & Standalone. By chained cafés, the market is divided into international and domestic. By sales channel, the market is segmented into retail sales & online.
The market for cafés in the country has been dominated by chained cafés, and this market segment is anticipated to maintain its dominance over the forecast period due to changing consumer tastes and preferences. The extensive use of the internet and social media, which has exposed many Saudis to western cuisine and culture, is one factor in this market's explosive expansion.
The Saudi Arabian cafés market is divided into five geographic regions: the Western, Central, Eastern, Southern, and Northern regions. In 2022, the western area dominated the Saudi Arabian cafés market, followed by the central region. This dominance is anticipated to persist during the forecast period as a result of changing lifestyles and consumer tastes, rising per capita income, and population growth.
Leading market players operating in the Saudi Arabia cafés market are:
- dr.CAFE
- Tim Hortons
- Café Bateel
- Dunkin' Donuts
- Starbucks
- Costa Coffee
- Mochachino
- Molten Chocolate Café
- THE COFFEE BEAN & TEA LEAF
- Seattle’s Best
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Due to the growing market of cafés in Saudi Arabia, many international brands are coming in and establishing their cafés in the country. For instance, in 2022 Thai brand Café Amazon opens its first branch in Riyadh, Saudi Arabia. The company also targets to open more than 150 stores across the country.
The Kingdom of Saudi Arabia has the largest economy in the Middle East, and AG Café, the Tim Hortons master franchise in the area, plans to increase the company's presence thereby opening more than 200 coffee shops there by 2024. "AG Café" is enthusiastic to engage in and support KSA's 2030 aim as well as to benefit from its growth potential.
“The public and private sectors' initiatives to diversify the tourist base and the reasons people travel to Saudi Arabia are having an impact on the country's tourism industry. The country is witnessing an increase in visitors, which is promoting domestic tourism. As a result, the market for cafes will grow in the upcoming years.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm”.
“Saudi Arabia Cafés Market, By Ownership (Standalone & Chained), By Chained Cafés (International & Domestic), By Sales Channel (Retail Sales & Online), By Region, Competition, Forecast & Opportunities, 2028F” has analyzed the future growth potential of Saudi Arabia cafés market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and assist decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with significant drivers, challenges, and opportunities in Saudi Arabia cafés market.
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