UAE Cafe and Coffee Chain Market Outlook to 2027

UAE Cafe and Coffee Chain Market Outlook to 2027


Market Overview:

The United Arab Emirates (UAE) had a thriving cafe and coffee chains market. Coffee culture has been steadily growing in popularity in UAE, and the country has seen a significant increase in the number of cafes and coffee chains. The market is witnessing a growing inclination and capacity among consumers to invest in higher-priced products that offer superior quality. There is an increasing trend of trying out and embracing novel products, influenced by global experiences. The demand for healthy and nutritious food and beverages is on the rise, driven by a stronger emphasis on healthy lifestyles and fitness.

The country has witnessed a rise in coffee consumption, driven by a combination of factors such as increasing urbanization, a young population, changing consumer preferences, and a growing middle class. Riyadh is the major hub for acai bowl players in UAE as majority of the players have their outlets situated in Riyadh. In 2022 the GDP Per Capita of UAE was USD 83.7 Th.

UAEcafé and coffee chain market is catered by some national and international chains with multiple players like Oakberry, Pinkberry and Acai Nation offering acai bowls and smoothies.

UAE Café and Coffee Chain Market Analysis

The usage of QR-coded menus, contactless delivery models, cashless payments have increased manifolds in recent period. Physical menu is co-existing with digital menu to cater to younger generation. Cloud Kitchens are also becoming popular.

The cafe market is being driven by an increasing working-age population and a population of between the ages of 24-40.

There is an upcoming trend in middle market cafes and restaurants where customers can play a game of pool, darts or any activity alongside a great meal. This is to offer a whole experience rather than just eating at an attractive pricing.

Owing to the diversification plan and strong focus on hospitality industry in UAE, the number of restaurants and cafes has skyrocketed in UAE and restaurant to customer ratio has increased. Thus, restaurants are facing it difficult to survive amid growing competition and are looking for innovative business models.

UAE govt. has launched a partnership with FOODICS, a fintech platform to boost the growth of SMEs in F&B sector by providing them the advanced technologies and systems.

Key Trends by Market Segment:

By Sales Channel: A typical café and coffee chain system involves the operation of Standalone and Chain Outlets. UAE café and coffee chain market is catered by some national and international chains with multiple players like Oakberry, Pinkberry and Acai Nation offering acai bowls and smoothies. The market for café and coffee chains in the UAE is comprised of various establishments, including both chain outlets and independent specialty and commercial cafes such as Starbucks, Costa Coffee, Saddle, Nova, and others.

By Category: Acai Bowls, Frozen Yogurt Players, Smoothies and Juice Bars Players, Coffee Shops, Healthy Cafes are the major operating areas. Owing to the mindful and healthy eating habits of the Saudi population, acai, frozen yogurt and smoothies are gaining momentum of as a healthier alternative to Ice creams and sugar-based drinks.

By Geography: Saudi Arabia’s ~30.8 Mn Urban Population define the developing stage of the nation, 2022. Riyadh, Jeddah and Dammam are the hubs for attraction and Corporates as majority of the businesses are clustered in these locations.

The highest concentration is found in the downtown but Jeddah as a city is more condensed and the same is found in the restaurant provision. Jeddah is the “old city” destinations which provide a lower quality restaurant experience. Moon Shell, in Jeddah is a restaurant that specializes in acai bowls operating with 3 Outlets in the Kingdom and popular vegan meals and breakfast.

Competitive Landscape:

International coffee chains like Starbucks, Costa Coffee, Tim Hortons, and Dunkin' Donuts have a strong presence in the UAE market. They benefit from brand recognition, standardized offerings, and extensive marketing efforts.

There are also regional café chains that have expanded within the UAE. Examples include Tim Hortons GCC, Caffe Nero, and Second Cup. These chains often provide a unique blend of local and international flavors to cater to the preferences of the diverse customer base.

In order to differentiate themselves in a crowded market, café and coffee chains in the UAE constantly strive to enhance their offerings. This includes introducing new flavors, expanding food menus, and incorporating local ingredients. Emphasis is placed on providing high-quality coffee and offering innovative beverages to attract and retain customers.

Many café and coffee chains in the UAE are focused on expanding their footprint by opening new outlets in high-traffic areas, such as malls, business districts, and residential communities. This allows them to increase their accessibility and capture a larger customer base.

Oakberry and Forty Fruity have established themselves as the market leaders in the UAE, demonstrating a widespread geographical presence across the entire country. These companies have solidified their positions through a diverse range of products in their portfolios, offering customers a wide variety of options to choose from.

Recent Developments:

The market has shown a willingness among consumers to pay a premium for superior quality products, including specialty coffees and unique blends. There has also been a demand for healthier options, driven by a focus on wellness and fitness.

UAE has been attracting international coffee chains, including well-known brands like Starbucks, Costa Coffee, and PAUL, which have expanded their presence in the country.

The country has witnessed a rise in coffee consumption, driven by a combination of factors such as increasing urbanization, a young population, changing consumer preferences, and a growing middle class.

Café and coffee chains in the UAE have embraced digital technology to enhance the customer experience. This includes mobile ordering apps, loyalty programs, and online delivery services. The ability to provide convenient and seamless experiences through digital channels has become crucial for staying competitive.

The trend of socializing in cafes among urban Millennials and the youngest part of the population, is further fueling the growth of the chained cafes. In addition, rapid infrastructure growth, including new airports has also given scope to various coffee chains to set up their outlets.

Future Outlook:

Consumer foodservice is expected to deliver a positive performance in UAE by all measures throughout the forecast period, across all different types of outlets. Cafes in UAE will witness a higher growth than all of the foodservice industry with increasing focus on healthy food.

The UAE has witnessed a significant increase in the coffee culture among its residents, with coffee consumption becoming a daily ritual for many. This trend is expected to continue, driving the demand for café and coffee chain offerings.

Tourism is forecast to increase further along with new attractions in the United Arab Emirates, and as global tourism increases generally, especially as the United Arab Emirates is a popular transit hub, all of which will benefit consumer foodservice.

Standalone outlets are anticipated to maintain their dominance in the UAE café and coffee chain market in terms of the number of outlets. On the other hand, chained stores are projected to contribute the majority share of revenue generated within the food category, showcasing their continued growth and success in the market.

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1. Executive Summary
1.1 Executive Summary – UAE Café and Coffee Chain Market
2. Country Overview: UAE
2.1 Economic Overview
2.2 Population Demographics
2.3 Government Initiatives for Consumer Spending
2.4 Tourism and Spending
2.5 Major Corporate Hubs
2.6 Major Retail Locations
3. Market Overview
3.1 Industry Cycle
3.2 Ecosystem of Major Players – Acai Bowls, Frozen Yoghurt
3.3 Ecosystem of Major Players – Smoothies and Juices, Healthy Cafes
3.4 Ecosystem of Major Players – Specialty Café Chains, Commercial Café Chains
3.5 Timeline of Major Chains – Acai Bowls
3.6 Timeline of Major Chains – Frozen Yoghurt and Ice Cream
4. Market Size and Segmentation, 2022
4.1 UAE Foodservice Market Size by GMV, 2017-2022
4.2 UAE Café and Coffee Chain Market Size, 2022
4.3 Market Segmentation on the basis of nature of operations, 2022
5. Industry Analysis
5.1 Trends and Developments in UAE Café and Coffee Chain Industry
5.2 Issues and Challenges in UAE Café and Coffee Chain Industry
5.3 Growth Drivers of UAE Café and Coffee Chain Industry
5.4 SWOT Analysis of UAE Café and Coffee Chain Industry
5.5 Government Regulations in UAE Café and Coffee Chain Industry
6. Competition Landscape
6.1 Market Share of Major Chained Cafés in UAE by GMV, 2022
6.2 Market Share of Other Chained Cafés in UAE by GMV, 2022
6.3 Competitive Assessment of UAE Café and Coffee Chain Industry – Gartner’s Magic Quadrant
6.4 Competition Landscape – Acai Bowls (Overview, Products, Operational Parameters, Location based Parameters, Labour-related factors and Promotional Offers)
6.5 Competition Landscape – Frozen Yoghurt / Ice Cream (Overview, Products, Operational Parameters, Location based Parameters, Labour-related factors and Promotional Offers)
6.6 Competition Landscape – Smoothies / Juices (Overview, Products, Operational Parameters, Location based Parameters, Labour-related factors and Promotional Offers)
7. Future Outlook and Projections, 2022-2027
7.1 UAE Foodservice Market Size in terms of GMV, 2022-2027
7.2 UAE Acai Bowls Market Size in terms of GMV, 2022-2027
8. Demand Analysis
8.1 Overview of the Consumer Foodservice Market in UAE
8.2 TAM, SAM, SOM Analysis
8.3 Consumer Persona Analysis of UAE
8.4 Regional Comparison of different emirates in UAE
8.5 Consumer Spending in UAE
8.6 Customer Cohort Analysis of UAE
9. Location Analysis
9.1 Location Analysis: Major Acai Bowl Chain Outlets in UAE
9.2 Location Analysis: Oak berry
9.3 Location Analysis: The Acai Spot
9.4 Location Analysis: Major Acai Bowl Chain Outlets in Dubai
9.5 Location Analysis: Major Acai Bowl Chain Outlets in Abu Dhabi
9.6 Location Analysis: Starbucks in Dubai
9.7 Location Analysis: Starbucks in Abu Dhabi
9.8 Rental Cost Analysis in UAE
10. Service Mix
10.1 Proposed Business Framework- Service offerings in a cafe
10.2 Cross-Comparison of Major Food Delivery platforms in UAE
10.3 Pricing Comparison – Acai Bowl Chains
10.4 Pricing Comparison – Frozen Yoghurt / Ice Cream Chains
10.5 Pricing Comparison – Smoothies and Juices Chains
10.6 Proposed Business Framework – Acai Bowls and Frozen Yoghurt Offering in a Store
10.7 Proposed Business Framework – Smoothies and Juices Offering in a Store
10.8 Proposed Business Framework – Other Product Offerings in a Store
11. Recommended Store Layout
11.1 Ideal Customer Flow in a Cafe
11.2 Recommended Store Layout for a Café
11.3 Recommended Infrastructural and Operational Facilities
12. Sales and Marketing Strategies
12.1 Consumers Desires and Emerging Implications in Acai Bowl Industry
12.2 Customer Journey and Promotion Strategy
12.3 Growth Strategies – Region Wise
12.4 Growth Strategies – Organic and Inorganic
12.5 Best Practices adopted in the UAE Acai Bowls Industry
12.6 Best Practices adopted by Global Acai Bowl players
12.7 Success of Starbucks Gift Card
12.8 Partnership Strategies for Promotion
12.9 Partnership with Schools and Colleges in UAE
12.10 Cross Comparison of Major Schools and Universities in UAE
12.11 Partnership with Corporate Clients in UAE
12.12 Marketing Strategies for Acai Bowls - Offline
12.13 Marketing Strategies for Acai Bowls - Online
13. Strategy Roadmap
13.1 Potential Risks for Sambazon in UAE Acai Bowls Market
13.2 Strategy Roadmap for Sambazon
14. Research Methodology
14.1 Market Definitions and Assumptions
14.2 Abbreviations Used
14.3 Sample Size Inclusion
14.4 Consolidated Research Approach
14.5 Research Limitations and Conclusion
15. Disclaimer
16. Contact Us

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