Report : Saudi Arabia Coffee Market Forecast to 2028 - COVID-19 Impact and Analysis - by Product Type (Beans, Capsules, Powder and instant coffee, and Others), Category (Organic and Conventional), and Distribution Channel (Supermarkets and Hypermarkets, Convenience Stores, Online Retail, and Others)
Increasing Consumption of Coffee Drive Product Demand
According to our latest market study, titled “Saudi Arabia Coffee Market Forecast to 2028 – COVID-19 Impact and Analysis – by Product Type (Beans, Capsules, Powder and Instant Coffee, and Others), Category (Organic and Conventional), and Distribution Channel (Supermarkets and Hypermarkets, Convenience Stores, Online Retail, and Others),’’ the Saudi Arabia coffee market share was valued at US$ 1,575.52 million in 2021 and is projected to reach US$ 2,220.70 million by 2028. It is expected to grow at a CAGR of 5.1% from 2021 to 2028.
In Saudi Arabia, people of all ages regularly drink coffee. In Saudi Arabia, Arabica coffee is a customary beverage offered at social gatherings, such as weddings and family gatherings. Moreover, Saudi Arabian consumers are inclined toward online shopping due to the convenience offered by online retail stores, availability of a wide range of coffee brands under one roof, and easy delivery of products. These factors are propelling the segment’s growth.
Coffee is one of the widely consumed beverages in Saudi Arabia. According to Food and Agriculture Organization (FAO), in 2019, coffee consumption in the country was 1.77 kg per capita. Due to the rising consumption of coffee in Saudi Arabia, its imports have increased. According to the Public Investment Fund (PIF) of Saudi Arabia, the country’s coffee imports account for SR 1.16 billion (US$ 308.95 million) annually, and the country imported ~80,000 metric tons of coffee in 2020. The rising number of immigrants and foreign tourists in Saudi Arabia is also contributing to the growing coffee consumption. These are among the major factors driving Saudi Arabia coffee market growth in the forecast period.
Baja; Brew92; ILLYCAFFè S.P.A.; KIMBO SPA; ZINO DAVIDOFF; Keurig Dr Pepper, Inc.; Luigi Lavazza Spa; Starbucks Corporation; Jacobs Douwe Egberts Gb Ltd.; and Nestle S.A are the key players operating in the Saudi Arabia coffee market. These companies are developing innovative products to sustain the market, which also helps expand the Saudi Arabia coffee market.
Impact of COVID-19 Pandemic on Saudi Arabia Coffee Market
According to the International Coffee Organization (ICO), coffee consumption worldwide increased before the COVID-19 pandemic. However, in 2020, various industries had to slow down their operations due to disruptions in value chains caused by the shutdown of national and international boundaries. The pandemic disrupted the supply chain of raw materials and manufacturing processes due to restrictions imposed by government authorities in Saudi Arabia. Moreover, the COVID-19 outbreak has significantly affected the international trade, which hindered the coffee industry. Further, in 2021, various economies resumed their operations as the governments relaxed the previously imposed restrictions, bolstering the Saudi Arabia coffee market.
Moreover, manufacturers were permitted to operate at full capacity, which helped them overcome the demand and supply gap. Currently, the market situation is better than earlier. Due to all these factors, the coffee market in Saudi Arabia has shown a mixed impact of the COVID-19 pandemic.
The report segments Saudi Arabia coffee market as follows:
Based on product type, the Saudi Arabia coffee market is segmented into beans, capsules, powder and instant coffee, and others. By category, the market is segmented into organic and conventional. Based on distribution channel, the market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others.
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