UAE Coffee Market (2023-2029) | Share, Size, Industry, Value, Growth, Revenue, Analysis, Trends, Segmentation, Outlook & COVID-19 IMPACT

UAE Coffee Market Latest Development (2023)

The UAE Coffee Market has developed as a coffee trading hub in the Middle East and a number of initiatives have been taken in order to develop the country as the major trading hub of different kinds of coffee. The Coffee Market in UAE in 2023 is growing at a rapid pace. This helped in the development of the Coffee Market in the UAE. This one key factor gave rise to the demand for sprat-dried as well as freeze-dried types of instant coffee in the nation. The coffee market in the country has been rising and developing at a rapid pace in the most effortless manner. Instant coffee is one of the new types of coffee products in the country, which is becoming increasingly popular and giving a boost to this sector as the number of people who consume this coffee product is increasingly growing since it is very easy to prepare instant coffee as the name itself suggests it.

Coffee brands in the market are constantly rising, which attracts a new generation to the country. New brands in the market come up with new types of coffee with a better taste which attracts people, and this, in turn, gives rise to the market. The latest coffee brands have been developing in this sector at a faster pace. The population in the nation is growing with a rising appetite for western culture as well as brands which are leading to higher demand for branded coffee in the country.

The e-commerce industry in the country has shaped this sector. Coffee is one of the number one e-commerce product products in the country, which is developing this sector rapidly. Social reforms and strong government investment have created significant opportunities for both international as well as domestic coffee chains in the country which is supporting the development of the sector. This study only focuses on the developments made in the sector in 2023 and it is not applicable in any other year. 

UAE Coffee Market Synopsis

The UAE coffee market experienced significant growth on account of a diverse population and varying preferences of the country along with strong growth in the urban population of the country and rising tourism & hospitality sector. The demand for coffee witnessed an upward growth trajectory mainly attributed to rising demand from urban consumers as they are more inclined toward the western culture where coffee has a higher preference.

However, Covid-19 resulted in complete turmoil for the tourism & hospitality sector due to the social distancing measures adopted to curb the spread of coronavirus, which in turn led to lower international visitors and the shutdown of cafes and restaurants in the country. Although the market was suffering initially, the retail sector of the country pushed the sales of coffee owing to the increasing demand from the consumers as they were spending most of their time at home during the lockdowns due to the restrictions imposed nationwide. The E-commerce sector witnessed a boom in coffee sales during the year 2020. Moreover, once the lockdown was lifted, the tourism & hospitality sector started to operate with safety precautions leading to an influx of international visitors to the country.

According to 6Wresearch, UAE Coffee Market size is projected to grow at a CAGR of 8.3% during 2021-2027. The increasing influence of western culture and higher living standards in cities like Dubai, Abu Dhabi, and Sharjah are also some of the major factors driving the growth of the UAE coffee market. The projected growth of the UAE coffee market can also be attributed to the variety of people residing in the major cities of UAE from different origins resulting in the adoption of multinational coffee chains and cafes in the country.  Import of Brazilian and Ethiopian coffee is also on a rise recently owing to their higher preference amongst international visitors to UAE.

Market by Bean Types Analysis

In terms of bean type, the arabica segment has captured above 45% of the market revenues in 2020.  Arabica garnered the majority UAE coffee market share on account of its good taste and high availability in the country. This trend would continue to persist in the coming years as well owing to the increasing preference of people from all age groups due to its sweet taste.

Market by Coffee Type Analysis 

In UAE Coffee Market, ground coffee has led the overall market revenues accounting for more than 45% of the market revenues in 2020. Ground coffee has dominated the UAE coffee market as it has high anti-oxidants which makes it the most preferred coffee amongst consumers. Moreover, ground coffee has fewer processing stages which makes it easily available for cafes, restaurants, and other food outlets.

Key Attractiveness of the Report

• COVID-19 Impact on the Market.
• 10 Years Market Numbers.
• Historical Data Starting from 2017 to 2020.
• Base Year: 2020
• Forecast Data until 2027.
• Key Performance Indicators Impacting the Market

Key Highlights of the Report

• UAE Coffee Market Overview
• UAE Coffee Market Outlook
• UAE Coffee Market Forecast
• Historical Data and Forecast of UAE Coffee Market Revenues for the Period 2017-2027F
• Historical Data and Forecast of UAE Coffee Market Revenues By Bean Types for the Period 2017-2027F
• Historical Data and Forecast of UAE Coffee Market Revenues By Coffee Types for the Period 2017-2027F
• Historical Data and Forecast of UAE Coffee Market Revenues By Distribution Channel for the Period 2017-2027F
• Historical Data and Forecast of UAE Coffee Market Revenues By Applications for the Period 2017-2027F
• Historical Data and Forecast of UAE Coffee Market Revenues By Regions for the Period 2017-2027F
• Market Drivers
• Market Restraints
• Market Trends
• Industry Life Cycle
• Porter’s Five Force Analysis
• Market Opportunity Assessment

Market Scope and Segmentation

The report provides a detailed analysis of the following market segments:

By Bean Types:

• Arabica
• Robusta
• Others (Liberica and Excelsa)

By Coffee Types:

• Ground Coffee
• Instant Coffee
• Whole Bean
• Coffee Pod & Capsules

By Distribution Channel:

• Hypermarkets/Supermarkets
• Online Platform
• Cafe and Food Services
• Others (General stores, Mom & Pop stores, Local Stores)

By Applications:

• Hot Coffee
• Cold Coffee

By Regions:

• Dubai
• Abu Dhabi
• Sharjah
• Other Emirates (Ajman, Fujairah, etc.)

The UAE coffee market is projected to show significant growth during the forecast period. UAE is a prominent and most developed coffee market in the Middle East region. The emirate’s status as the global business and tourism hub has drawn the attention of global food and beverage (F&B) chains in the country. A rapidly growing expatriate population and increasing appetite for western culture and brands have led to the higher demand for branded coffee in the emirate in recent years. The increasing influx of specialty brands, rapidly growing coffee houses and cafes along innovative coffee products available in the market would further drive the demand for coffee in UAE in the coming years.

According to 6Wresearch, the UAE Coffee Market size is anticipated to register growth during 2020-2026. Seeing the robust demand, the DMCC coffee center developed at Dubai Multi Commodities Centre (DMCC) for the coffee processing and distribution facility to boost the international trade has witnessed considerable responses and provided enough scope to consumers with differentiated coffee products. The increasing trend of health and wellness factors associated with coffee over other aerated rinks could be easily identified with the government support to promote coffee by imposing excise taxes of 50% on sugary soft drinks and 100% on further energy drinks. This move has resulted in an upsurge in the demand for coffee and related products in the country. However, currently, the market is witnessing a period of slow growth due to the prolonged wide lockdown imposed in the wake of the COVID-19 outbreak during the initial months of 2020.

By distribution channel, the cafes and food services segment has gained traction in the country over the past few years on the back of changing lifestyles and the trend of café-oriented culture prevailing in the country. By bean types, the Arabica segment held the maximum revenue share in the UAE coffee market in 2019. The high segment growth is attributed to its higher production and increased demand and consumption on account of its aroma, sweet texture, and freshness.

The UAE coffee report thoroughly covers the market by bean types, coffee types, distribution channels, and applications. The UAE coffee market report outlook provides an unbiased and detailed analysis of the on-going UAE coffee market trends, UAE coffee market share, opportunities/high growth areas, market drivers, which would help stakeholders to device and align market strategies according to the current and future market dynamics.

UAE Coffee market is estimated to register sound revenues in the coming timeframe backed by the rising trend of cafe culture in the country which fascinates couples to celebrate multiple occasions in cafes. Further, rising foreign flavors and the inclination of a large population towards coffee encourage various restaurants and the introduction of innovative coffee products is estimated to generate lucrative opportunities during the forecast period. Further, the rise in skin concerns is estimated to dominate the overall market share due to increased demand for better skin solution where coffee-based products are satisfying large population extremely by removing obstinate skin tanning is anticipated to leave a positive impact on the product demand and is beneficial the UAE coffee market garner potential growth in the upcoming six years.

The UAE coffee market is anticipated to find its true potential in the market underpinned by an increased introduction of western flavors. Additionally, Dubai consisting of a large expansion of coffee hubs and cafes coupled with a rising international expatriate population urges to taste countries' popular coffee, where Arabic cardamom and saffron-infused coffee being in the top list of the population which is expected to leave a positive impact on the coffee market landscape. The variety of coffee consumption relies on the weather, therefore the changing weather is estimated to be another factor for the growth of the Dubai coffee market and as a result, it would contribute towards the growth of the UAE coffee market in the coming timeframe.

 Key Highlights of the Report

• UAE Coffee Market Overview
• UAE Coffee Market Outlook
• UAE Coffee Market Forecast
• Historical Data of UAE Coffee Market Revenues for the Period 2016-2019
• UAE Coffee Market Size and UAE Coffee Market Forecast of Revenues until 2026
• Historical Data of UAE Coffee Market Revenues, By Bean Types, for the period 2016-2019
• Market Size and Forecast of UAE Coffee Market Revenues, By Bean Types, until 2026
• Historical Data of UAE Coffee Market Revenues, By Coffee Types, for the period 2016-2019
• Market Size and Forecast of UAE Coffee Market Revenues, By Coffee Types, until 2026
• Historical Data of UAE Coffee Market Revenues, By Distribution Channel, for the period 2016-2019
• Market Size and Forecast of UAE Coffee Market Revenues, By Distribution Channel, until 2026
• Historical Data of UAE Coffee Market Revenues, By Applications, for the period 2016-2019
• Market Size and Forecast of UAE Coffee Market Revenues, By Applications, until 2026
• UAE Coffee Market Drivers & Restraints
• UAE Coffee Market Trends & Evolution
• UAE Coffee Market Industry Life Cycle
• UAE Coffee Market Opportunity Assessment
• UAE Coffee Market Share, By Players
• UAE Coffee Market Overview on Competitive Benchmarking
• Company Profiles
• Key Strategic Recommendations 

Markets Covered

The UAE coffee market report provides a detailed analysis of the following market segments:

By Bean Types

• Arabica
• Robusta
• Others

By Coffee Types

• Ground Coffee
• Instant Coffee
• Whole-Bean
• Coffee Pod and Capsules

By Distribution Channel

• Hypermarkets/ Supermarkets
• Online Channels
• Cafes and Food Services
• Others

By Applications

• Hot Drinks
• Ready to Drink
• Flavored Beverages
• Others