Saudi Arabia Cafés Market

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

Saudi Arabia cafés market is projected to register exponential growth during the projected years. The main factors influencing the Saudi Arabian café market include the rising per capita income, rising tourist populations, growing western influence, shifting customer preferences and tastes, and the rapid expansion of café services. 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. Over the years, a key factor in the expansion of Saudi Arabia's café business has been the younger population and millennials' rising use of online café services.

Cafés are small eateries that offer both drinks and simple light food. A café is a type of restaurant that often offers tea, coffee, and light snacks. The word "café" is a French word that means "coffee". Chain outlets like Chili's and TGI Friday's, which dominate the market, make up the majority of the Saudi Arabia Cafés Market.

The Saudi Arabian Cafés market is driven by the increasing consumption of coffee in the country along with the rising investment to promote Saudi coffee beans. For instance, The Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, has stated that it is starting a coffee company to market Saudi coffee beans internationally and grow the country's domestic sector. The Saudi Coffee Company wants to double the nation's annual coffee production from 300 tons to 2,500 tons over the course of the next ten years by investing over 320 million dollars (1.2 billion Saudi riyals) in the sector.

Innovative Designs of Café is influencing the market

Café owners in Saudi Arabia are designing their cafés with smart technology and high standard interior design to cater and to have an edge in market over other competitors. For instance, MO, a bakery, and espresso café in Khobar, is owned by experience-driven business RightGrain. Masquespacio a Spanish design company created its interior. Water was chosen as the primary interior concept by the design studio because of its crucial function as the primary component in baking bread and making coffee. The three material states of water—liquid, solid, and gas are the focal points of the 400 square meter restaurant/café. The café, which serves as the focal point of the room and is where baked products are sold and coffee drinks are prepared, is suspended above by a waterfall-like structure. The structure is made of vertical tubes that were sandblasted to give the appearance of water flowing through them. Controllable RGB LED lighting was used to bring color and vary the mood of the area, and all the furniture was specially made for the project.

Expansion of Branded Coffee shops to cater the Market demand

Saudi Arabia is the largest market in the Middle East region, expanding 18.5 percent to 3,556 outlets and making up 40% of all outlets in the region. Saudi Arabia declared 2022 the year of Saudi coffee. According to the World Coffee Portal's Project Café Middle East 2023 report, convenience has gained popularity, with app-enabled pick-up and delivery serving a new generation of tech-savvy and affluent coffee customers. Five of the top 20 coffee chains in the region originated in Saudi Arabia, with Barn's being the third largest with 431 locations. Due to the expansion of these cafés the market will see growth at a faster rate during the forecast years.

Increasing Number of Women Entrepreneurs is Propelling the Market Growth

Women owned about 3% of all commercial restaurants and cafés in Saudi Arabia, according to data from the Ministry of Commerce and Investments. The ministry has taken steps to boost women's participation in business and give them more authority. During the projected years, it is anticipated that these women-friendly regulations will increase the proportion of women who operate cafés as well as the number of female consumers.

Government’s Transformation Plan to Boost the market

The government's plan to make Riyadh a new cosmopolitan corporate center for the area is putting the city's public space and lifestyle facilities in the spotlight. In Riyadh, these essential elements that determine a city's habitability are gradually coming together. The capital of the Kingdom is starting to resemble a foodie's paradise. When its 17 eateries debut in 2022, Bujairi Terrace at Diriyah Gate will provide an additional 15,000 sqm of lifestyle retail space to the city. The café scene is also thriving, with 40% of new businesses falling into this category. UWalk has emerged as the hub of Riyadh's café scene, with 53% of its businesses being coffee shops.

Market Segmentation

The Saudi Arabia café market is categorized by ownership, by 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. Saudi Arabia Cafés market is studied in major regions namely western, central, southern, eastern, and northern.

Market Players

dr.CAFE, Tim Hortons, Café Bateel, Dunkin' Donuts, Starbucks, Costa Coffee, Mochachino, Molten Chocolate Café, THE COFFEE BEAN & TEA LEAF, Seattle’s Best, are the key market players operating in Saudi Arabia cafés market.

Report Scope:

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

• Saudi Arabia Cafés Market, By Ownership:
• Chained
• Standalone
• Saudi Arabia Cafés Market, By Chained Cafés:
• International
• Domestic
• Saudi Arabia Cafés Market, By Sales Channel:
• Retail Sales
• Online
• Saudi Arabia Cafés Market, By Region:
• Western
• Central
• Southern
• Eastern
• Northern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in Saudi Arabia Cafés Market.

Company Information

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

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