Middle East & Africa Coffee Market Outlook, 2029

Middle East & Africa Coffee Market Outlook, 2029

The Middle East and Africa, with their rich cultural heritage and diverse landscapes, have long been integral to the global coffee trade. In these regions, coffee holds a special place in daily life, serving as both a cherished beverage and a symbol of hospitality and social connection. From the bustling coffee markets of Ethiopia, the birthplace of coffee, to the aromatic coffee shops of Istanbul and the traditional coffee ceremonies of the Arabian Peninsula, coffee culture in the Middle East and Africa is steeped in tradition and ritual. Here, coffee is more than just a drink; it is a cultural phenomenon that brings people together, fosters relationships, and celebrates shared experiences. The region's unique geography and climate provide ideal conditions for coffee cultivation, with Ethiopia, Kenya, and Uganda among the leading coffee-producing countries in Africa, while Yemen and Ethiopia are renowned for their specialty coffee varieties. The Middle East, meanwhile, has a rich tradition of coffee roasting and preparation, with techniques ranging from the traditional Turkish coffee-brewing method to the modern espresso culture found in cities like Dubai and Beirut. As global demand for coffee continues to rise, the Middle East and Africa play an increasingly important role in the coffee industry, both as producers and consumers, shaping the future of coffee culture and trade worldwide. The Middle East and Africa host a variety of coffee festivals and events celebrating the region's coffee culture, heritage, and innovation. Events like the Dubai International Coffee & Tea Festival, the Addis Coffee Festival in Ethiopia, and the Nairobi Coffee Festival in Kenya attract coffee professionals, enthusiasts, and tourists from around the world. Africa is home to a wide variety of coffee species, including Arabica and Robusta, as well as lesser-known varieties like Ethiopian heirloom coffee. The region's diverse climates, altitudes, and microclimates contribute to the unique flavours and profiles of African coffees, making them prized among coffee aficionados.

According to the research report ""Middle East and Africa Coffee Market Outlook, 2029,"" published by Bonafide Research, the Middle East and Africa the coffee market is expected to reach a market size of more than USD 11 Billion by 2029. Coffee holds significant cultural importance in the Middle East and Africa, where it is deeply ingrained in daily life, social interactions, and traditional ceremonies. Coffee is often served as a symbol of hospitality, friendship, and community, driving consistent demand for coffee products across the region. The Middle East and Africa have rapidly growing populations, with a large proportion of young and urbanised demographics. As urbanisation and disposable incomes increase, so does the demand for coffee, particularly among younger consumers who embrace coffee culture and cafe lifestyles. As lifestyles evolve and consumer preferences shift, there is a growing demand for specialty and premium coffee products in the Middle East and Africa. Consumers are increasingly seeking high-quality, ethically sourced, and artisanal coffee experiences, driving demand for specialty coffee shops, gourmet coffee blends, and specialty brewing methods. Urbanisation in the Middle East and Africa has led to the proliferation of cafes, coffee shops, and specialty coffee outlets in cities across the region. The emergence of cafe culture has transformed the coffee market, with cafes serving as social hubs where people gather to socialise, work, and relax over coffee, fueling demand for coffee products and experiences. The expansion of retail channels, including supermarkets, convenience stores, and online platforms, has made coffee more accessible to consumers in the Middle East and Africa. Increased retail presence and distribution networks enable consumers to purchase coffee products conveniently, driving overall market demand. Economic development and rising affluence in certain countries within the Middle East and Africa have led to increased discretionary spending on food and beverages, including coffee. As disposable incomes rise, consumers are willing to spend more on premium coffee products, specialty blends, and coffee-related experiences, driving market demand.

Market Drivers
• Cultural Significance: Coffee holds deep cultural significance in the Middle East and Africa, where it is an integral part of social customs, hospitality, and traditional ceremonies. Coffee plays a central role in social gatherings, business meetings, and religious rituals, driving consistent demand for coffee products across the region.
• Urbanisation and Cafe Culture: Urbanisation has led to the proliferation of cafes, coffee shops, and specialty coffee outlets in cities throughout the Middle East and Africa. The emergence of cafe culture has transformed the coffee market, with cafes serving as popular venues for socialising, networking, and relaxation, driving demand for coffee products and experiences.

Market Challenges
• Climate Change and Environmental Factors: Climate change poses a significant threat to coffee production in the region, with rising temperatures, changing weather patterns, and extreme weather events affecting coffee-growing regions. Prolonged droughts, unpredictable rainfall, and an increased incidence of pests and diseases can reduce crop yields, lower coffee quality, and disrupt supply chains.
• Water Scarcity and Irrigation: Water scarcity is a pressing issue in many coffee-producing countries in the Middle East and Africa, where water resources are limited and competition for water resources is high. Inadequate irrigation systems and inefficient water management practices can lead to water stress for coffee plants, affecting their growth, productivity, and resilience to climate change.

Market opportunity
• Investment in the Coffee Value Chain: There is growing interest and investment in the coffee value chain in the Middle East and Africa, including coffee production, processing, and distribution. Governments, private investors, and development organisations are supporting initiatives to improve coffee farming practices, enhance post-harvest processing techniques, and strengthen market linkages, creating opportunities for value addition and market expansion.
• Export Potential: Several countries in the Middle East and Africa have the potential to increase their coffee exports and capture a larger share of the global coffee market. With the right investments in infrastructure, quality control, and market access, coffee-producing countries can leverage their unique coffee varieties, flavour profiles, and cultural heritage to enhance their competitiveness in international markets and increase export revenues.

Based on the product types, they include instant coffee, ground coffee, whole bean, and coffee pods and capsules.

In the Middle East and Africa, coffee pods and capsules contribute the highest consumption rate during the forecast year. Coffee pods and capsules offer unparalleled convenience, allowing consumers to enjoy a freshly brewed cup of coffee with minimal effort and cleanup. In urban areas with fast-paced lifestyles, where time is often limited, the convenience of coffee pods and capsules appeals to busy professionals and commuters who seek quick and hassle-free coffee solutions. Coffee pods and capsules are pre-portioned and sealed to preserve freshness and flavour, ensuring consistent quality with every cup. This consistency is particularly valued by consumers who prioritize taste and aroma and expect a high-quality coffee experience without the need for manual brewing or grinding. Many coffee pod and capsule brands position themselves as premium offerings, using high-quality Arabica beans, innovative brewing technologies, and sleek packaging to differentiate them in the market. Consumers are willing to pay a premium for these premium products, leading to higher profit margins and increased brand loyalty. Coffee pod and capsule brands have invested heavily in marketing and advertising campaigns to promote their products and educate consumers about their benefits. Through strategic partnerships, endorsements, and social media influencer collaborations, brands have successfully penetrated the market and increased awareness and demand for coffee pods and capsules in the Middle East and Africa.

In terms of the distribution channel, it includes off-trade and on-trade. Furthermore, according to the report, nature types include conventional and organic; among them, conventional leads the market.

The Middle East and Africa are experiencing rapid growth in internet penetration rates, driven by advancements in technology, increased smartphone usage, and expanding access to affordable internet services. As more consumers gain access to the internet, online shopping becomes increasingly accessible and convenient, fueling the growth of online trade in the region. The proliferation of e-commerce platforms and online marketplaces provides consumers in the Middle East and Africa with a wide range of options for purchasing coffee products online. E-commerce giants like Amazon, Souq.com, Jumia, and Konga have expanded their presence in the region, offering a diverse selection of coffee brands, flavours, and formats to consumers across different countries. Increasing awareness of ethical sourcing, sustainability, and fair trade practices among consumers in the Middle East and Africa is driving demand for responsibly sourced coffee products. Online trade platforms provide transparency and information about product origins, certifications, and sustainability practices, empowering consumers to make informed purchasing decisions. Furthermore, conventional coffee leads the market; conventional coffee has long been ingrained in Middle Eastern and African cultures, with long-standing customs around its production, brewing, and drinking. Traditional coffee varietals that suit regional tastes and preferences, such as Arabica and Robusta, are well-known and extensively consumed. Conventional coffee tends to be more affordable than specialty or premium coffee varieties, making it accessible to a broader segment of the population in the Middle East and Africa. Price-sensitive consumers, particularly those with limited disposable incomes, often prioritise affordability when purchasing coffee products, driving demand for conventional coffee options. Conventional coffee holds a sense of familiarity and tradition for consumers in the Middle East and Africa, who have grown accustomed to its taste, aroma, and brewing methods over generations. Traditional coffee brewing methods, such as Turkish coffee, Arabic coffee, and Ethiopian coffee ceremonies, are deeply ingrained in local culture and social customs, reinforcing the preference for conventional coffee.

In terms of the source types, they are segmented into Arabic and Robusta; among them, Arabic contributes the highest market share.

Arabica coffee is prized for its smooth, complex flavour profile, which is characterised by floral, fruity, and nuanced tasting notes. The delicate acidity, balanced sweetness, and subtle aroma of Arabica coffee appeal to discerning coffee drinkers in the Middle East and Africa who appreciate high-quality coffee experiences. Arabica coffee is generally associated with higher quality and superior taste compared to other coffee varieties, such as Robusta. Consumers in the Middle East and Africa often perceive Arabica coffee as a premium product valued for its nuanced flavours, refined acidity, and smooth mouthfeel, leading to its popularity in the market. The growing demand for specialty coffee in the Middle East and Africa has further boosted the popularity of Arabica coffee, as it is often favoured for its superior quality, unique flavour profiles, and single-origin characteristics. Specialty coffee enthusiasts seek out Arabica beans for their distinct terroir, flavour complexity, and traceability, driving demand for Arabica coffee in the market. Arabica coffee offers versatility in brewing, allowing consumers to enjoy a wide range of coffee preparations, including espresso, filter coffee, Turkish-style coffee, and specialty brews. Its adaptable nature and compatibility with various brewing methods cater to the diverse preferences and tastes of consumers in the Middle East and Africa, further solidifying its position as the leading source of coffee in the market.

Based on the report, the major countries covered in the report include the UAE, Saudi Arabia, South Africa, and the rest of the Middle East and Africa.

Saudi Arabia leads the Middle East and Africa. In the coffee market, Saudi Arabia has a rich coffee consumption culture deeply ingrained in its social fabric. Coffee, particularly Arabic coffee, holds significant cultural importance and is served as a symbol of hospitality and generosity. Traditional coffee ceremonies, known as ""gahwa,"" are common in Saudi households, where coffee is brewed and served to guests as a gesture of welcome and respect. Saudi Arabia has experienced significant growth in cafe culture in recent years, with a booming cafe scene in major cities like Riyadh, Jeddah, and Dammam. The proliferation of coffee shops, specialty cafes, and international coffee chains has fueled the demand for coffee among Saudis, driving the growth of the coffee market in the country. Economic prosperity and rising disposable incomes have contributed to increased spending on coffee-related products and experiences in Saudi Arabia. As the population becomes more affluent, there is a growing demand for premium coffee blends, specialty drinks, and gourmet coffee experiences, supporting the expansion of the coffee market in the country. Urbanisation and lifestyle changes have led to shifting consumer preferences and habits, with more Saudis embracing Western-style coffee consumption patterns and coffee shop culture. Younger generations, in particular, are driving demand for trendy cafes, artisanal coffee blends, and Instagram-worthy coffee experiences, driving growth in the coffee market. The Saudi government has been supportive of the coffee industry, encouraging investment and entrepreneurship in the sector. Initiatives to promote tourism, hospitality, and leisure activities have led to the development of vibrant coffee scenes in tourist destinations like Jeddah and Al Khobar, further boosting the coffee market.

The coffee market is highly competitive and is dominated by players like Nestlé S.A., Kraft Heinz Company, JAB Holding Company, Luigi Lavazza S.p.A., and Massimo Zanetti Beverage Group. The leading players in the coffee market recorded a significant scope in their market shares through innovations in products and expansions in other regions via joint ventures. For instance, in September 2021, Louis Dreyfus Company Asia Pte Ltd signed a joint venture agreement with Zephyr Japan, a Japanese specialty coffee retailer that provides premium coffees. With this joint venture, the company aims for specialty business expansion, positioning it to increase excellent coffee flows into Japan and other East Asian markets.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Coffee market Research Report with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• Instant Coffee
• Ground Coffee
• Whole Bean
• Coffee Pods and Capsules

By Nature
• Conventional
• Organic

By Source
• Arabica
• Robusta

By Distribution Channel
• Off-trade (Supermarkets/hypermarkets, Convenience Stores, Specialist Retailers, Other Off-trade Channels)
• On-trade

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Coffee industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.