Middle East Ready to Drink Coffee Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Middle East Ready to Drink Coffee Market Analysis

The Middle East Ready to Drink Coffee Market size is estimated at 175.4 million USD in 2025, and is expected to reach 290.5 million USD by 2030, growing at a CAGR of 10.61% during the forecast period (2025-2030).

The coffee market in the Middle East is experiencing significant transformation driven by rapid urbanization and changing consumer lifestyles. In the United Arab Emirates alone, the urban population reached 8.3 million in 2023, representing 87.6% of the total population, reflecting the region's increasing urbanization trend. This demographic shift has fostered a dynamic coffee culture, particularly among young professionals seeking convenient beverage options. The rise of hybrid working models and fast-paced urban lifestyles has created a strong demand for ready-to-drink coffee products that offer both convenience and quality. Modern consumers are increasingly prioritizing products that align with their busy schedules while maintaining premium taste profiles.

The retail landscape for RTD coffee has evolved significantly, with digital transformation playing a crucial role in reshaping distribution channels. The United Arab Emirates exemplifies this trend with an impressive 99% internet penetration rate as of 2022, facilitating the growth of e-commerce platforms and digital ordering systems for beverage products. Retailers are responding by implementing omnichannel strategies, combining traditional brick-and-mortar presence with robust digital capabilities. The integration of mobile ordering apps, subscription services, and personalized marketing campaigns has become increasingly prevalent, reflecting the industry's adaptation to modern consumer preferences.

The specialty coffee segment has witnessed remarkable expansion, particularly in urban centers across the Middle East. Dubai's vibrant coffee scene, supported by its tourism sector which attracted 14.36 million international visitors in 2022, has become a catalyst for innovation in the RTD coffee market. The United Arab Emirates has emerged as a key market for premium coffee experiences, with its branded coffee shop sector growing to 1,394 stores by 2023. This expansion has been accompanied by a trend toward premium and artisanal RTD coffee products, with consumers showing increased interest in cold brew varieties and specialty flavor profiles.

Sustainability initiatives and health-conscious consumption patterns are reshaping the industry landscape. The Saudi Coffee Company's announcement of a USD 320 million investment over the next decade demonstrates the region's commitment to developing sustainable coffee production capabilities. This initiative aims to increase production from 300 to 2,500 tonnes annually, reflecting a broader trend toward local sourcing and sustainable practices. Manufacturers are responding to health-conscious consumers by introducing products with reduced sugar content, natural sweeteners, and functional benefits. The industry is also witnessing increased adoption of eco-friendly packaging solutions and sustainable production practices, aligning with global environmental consciousness trends.

Middle East Ready to Drink Coffee Market Trends

Consumers are increasingly seeking products made with natural ingredients owing to their increasing health consciousness

• The most common coffee product ordered in Saudi Arabia was the latte, which accounted for 27% of all coffee sales in 2022, followed by hot coffee like cappuccino, americano, espresso, and black coffee, which costs an average of USD 2.6 per 150 ml. Hot chocolate is also famous in the country and costs around USD 3.2 per 150 ml.
• Around 35% of consumers in the Middle east region are interested in RTD Coffees that offer functional benefits in addition to energy. Manufacturers in the region are also delivering new products with traditional flavors, and palatable taste ranges will also increase the Saudi Arabia RTD cold brew coffee. Some of the popular RTD coffee flavors include vanilla, mocha, caramel, hazelnut, and others.
• Inflation rates have risen slower in both Saudi & the UAE meaning the average prices shoppers are paying and overall spends per trip are both lower in these markets. The price of coffee has significantly increased, and have been hovering at these prices. The average price for RTD coffee, away from home increased from USD 12.07 in 2019 to USD 14.68 in 2023.
• Consumers are preferring functional RTD beverages. Ready-to-drink coffee is also one of the functional drinks that is available with proven health benefits. Various types of ready-to-drink coffee are introduced to serve the vast consumer base spread across the Middle East region.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

• Brands are emphasizing the origin of their coffee beans, highlighting the unique characteristics of the region's thereby appealing to consumers
• Starbucks has established itself as a leading RTD Coffee brand in the Middle East region through its vigorous marketing and promotion activities

Segment Analysis: Soft Drink Type

Iced Coffee Segment in Middle East RTD Coffee Market

Iced coffee has emerged as a dominant force in the Middle East's RTD coffee market, commanding approximately 23% market share in 2024. The segment's prominence can be attributed to its versatility and appeal in the region's warm climate, where consumers increasingly seek refreshing coffee alternatives. The popularity of iced lattes and flavored options has particularly driven growth, especially for on-the-go consumption. Major retail chains and coffee shops across the Middle East have expanded their iced coffee offerings, introducing innovative flavors and seasonal variations to meet evolving consumer preferences. The segment's success is further bolstered by the rising trend of customization, with consumers embracing the ability to personalize their iced coffees with various flavorings, syrups, milk alternatives, and toppings.

Cold Brew Segment in Middle East RTD Coffee Market

The cold brew coffee segment is experiencing remarkable growth in the Middle East RTD coffee market, with a projected growth rate of approximately 11% from 2024 to 2029. This surge is driven by increasing consumer appreciation for cold brew's distinct smooth flavor profile and higher caffeine content. The segment's growth is particularly notable in premium and high-end offerings, positioning itself as a more sophisticated coffee experience for discerning consumers. Cold brew's appeal extends beyond traditional coffee drinkers, attracting health-conscious consumers due to its naturally lower acidity levels. Manufacturers are responding to this demand by introducing innovative variants, including nitrogen-infused options and specialty blends, while also emphasizing sustainable packaging solutions to appeal to environmentally conscious consumers.

Remaining Segments in Soft Drink Type

Other RTD coffee variants, including cappuccino, espresso, café mocha, and dairy-free options, continue to play a vital role in the market's diversification. These segments cater to specific consumer preferences, particularly those seeking traditional coffee experiences in convenient, ready-to-drink formats. The dairy-free segment has gained particular attention, reflecting broader trends toward plant-based alternatives and health-conscious consumption. Manufacturers are actively developing new formulations and flavors within these categories, often incorporating innovative ingredients and focusing on sugar-reduced variants to align with health-conscious consumer preferences.

Segment Analysis: Packaging Type

Glass Bottles Segment in Middle East RTD Coffee Market

Glass bottles dominate the Middle Eastern RTD coffee market, commanding approximately 40% market share in 2024. This leadership position can be attributed to the premium perception associated with glass packaging in the region. Glass bottles are particularly favored for their ability to preserve the coffee's flavor and freshness due to their impermeability to oxygen. The segment's success is further bolstered by the growing consumer preference for sustainable packaging options, as glass is 100% recyclable and can be reused infinitely without losing quality. Major brands in the region are increasingly choosing glass bottles for their premium RTD coffee lines, especially for cold brew and specialty coffee varieties, as it aligns with the upscale positioning of these products.

Aseptic Packages Segment in Middle East RTD Coffee Market

The aseptic packaging segment is experiencing rapid growth in the Middle Eastern RTD coffee market, with projections indicating strong expansion through 2029. This growth is primarily driven by the segment's ability to maintain product freshness without preservatives, meeting the increasing consumer demand for clean-label products. The sterilization process in aseptic packaging extends shelf life while preserving the coffee's natural flavors, making it particularly attractive for premium RTD coffee products. The segment's growth is further supported by technological advancements in packaging and filling technologies, along with rising consumer awareness about food safety and quality preservation. Additionally, aseptic packaging's ability to maintain product integrity without refrigeration makes it ideal for the region's hot climate and long-distance transportation requirements.

Remaining Segments in Packaging Type

Metal cans and PET bottles continue to play significant roles in the Middle Eastern RTD coffee market. Metal cans are particularly valued for their superior cooling properties and light protection capabilities, making them ideal for cold RTD coffee products. The segment also benefits from tamper-evident seals and robust barrier properties. PET bottles, meanwhile, offer flexibility in design and are preferred for their lightweight nature and convenience. Both packaging types are continuously evolving with innovations in recycling technologies and sustainable materials, responding to growing environmental concerns in the region.

Segment Analysis: Distribution Channel

Off-trade Segment in Middle East RTD Coffee Market

The off-trade channel, particularly through supermarkets and hypermarkets, dominates the Middle Eastern RTD coffee market, commanding approximately 54% of the market value in 2024. This dominance is primarily attributed to the extensive network of modern retail outlets across the region, offering consumers a wide variety of RTD coffee brands and products under one roof. The segment's strong performance is supported by the region's rapid urbanization and evolving consumer lifestyles, with supermarkets and hypermarkets serving as primary destinations for daily grocery needs, including RTD coffee purchases. These retail giants leverage their scale and bargaining power to offer competitive prices and frequent promotional activities, making RTD coffee more accessible to consumers. The convenience of one-stop shopping, combined with the ability to compare different brands and varieties, has made off-trade channels particularly appealing to Middle Eastern consumers.

On-trade Segment in Middle East RTD Coffee Market

The on-trade distribution channel is experiencing remarkable growth in the Middle Eastern RTD coffee market, projected to expand at approximately 11% through 2029. This growth is driven by the region's vibrant eating-out culture and the proliferation of diverse restaurants and cafes offering both local and international coffee varieties. The segment's expansion is particularly notable in key cities like Dubai, Riyadh, and Doha, which attract significant business travelers and tourists, fueling the foodservice sector's growth. The trend is further supported by the increasing number of branded coffee shops and cafes across the region, with many establishments focusing on premium and specialty coffee offerings. The success of the on-trade channel is also attributed to the rising popularity of coffee culture among younger consumers and the growing preference for experiential consumption.

Remaining Segments in Distribution Channel

Beyond the major off-trade and on-trade channels, the Middle Eastern RTD coffee market is served through various other distribution formats, including convenience stores, specialty stores, and online retail platforms. Convenience stores play a crucial role in providing easy access to RTD coffee products in high-traffic locations and residential areas. Specialty stores cater to premium and artisanal coffee enthusiasts, offering unique and high-quality RTD coffee varieties. The online retail channel is gaining significant traction, particularly with the region's high internet penetration rates and growing preference for e-commerce platforms. These diverse distribution channels collectively contribute to the market's dynamic growth by catering to different consumer preferences and shopping behaviors.

Middle East Ready to Drink Coffee Market Geography Segment Analysis

Ready to Drink Coffee Market in Saudi Arabia

Saudi Arabia dominates the Middle Eastern coffee market, commanding approximately 48% of the total market value in 2024. The country's Saudi Arabian coffee market landscape is characterized by a robust network of both international and local coffee chains, with over 3,550 branded coffee outlets operating across major cities. The market's strength is underpinned by the country's large population of daily coffee consumers, with an estimated 40-50% of residents consuming at least one cup daily. The presence of a substantial expatriate workforce has significantly influenced consumption patterns, driving demand for convenient, ready-to-drink options. The market's dynamism is further enhanced by the government's strategic investment initiatives, including the Saudi Coffee Company's commitment to boost domestic coffee production. Modern retail formats, particularly supermarkets and hypermarkets, play a crucial role in distribution, benefiting from the increasing trend of at-home consumption and remote work culture.

Ready to Drink Coffee Market in United Arab Emirates

The United Arab Emirates represents a sophisticated UAE coffee market characterized by a highly urbanized consumer base and advanced retail infrastructure. The market's evolution is closely tied to the country's rapid urbanization, with 87.6% of the population residing in urban areas as of 2023. The UAE's coffee retail landscape is particularly noteworthy, featuring 1,394 stores and ranking as the second-largest market in the MENA region. The presence of major international chains, including Starbucks with over 250 stores, has significantly shaped consumer preferences and market dynamics. The market benefits from the country's position as a global business hub, attracting a diverse consumer base with varying coffee preferences. Digital transformation has played a crucial role, with the UAE's exceptionally high internet penetration rate of 99% facilitating e-commerce growth and innovative delivery solutions. The market's sophistication is further reflected in the continuous introduction of premium and specialty RTD coffee products, catering to increasingly discerning consumers.

Ready to Drink Coffee Market in Qatar

Qatar stands out in the Middle Eastern RTD coffee market with a projected CAGR of approximately 11% from 2024 to 2029, positioning it as the fastest-growing country market in the region. The market's robust growth is supported by Qatar's vibrant Middle Eastern coffee shop culture, with approximately 400 branded outlets operating across the country as of 2023. The market's evolution is particularly noteworthy in the specialty coffee segment, with establishments like NOMAD Coffee and Cue Café introducing innovative concepts and unique coffee experiences. The presence of major international chains, including Starbucks and McCafé with 49 stores each, has helped establish a strong foundation for RTD coffee consumption. Qatar's high disposable income levels and significant expatriate population have created a sophisticated consumer base receptive to premium RTD coffee offerings. The market's growth is further supported by the country's advanced retail infrastructure and the increasing adoption of digital payment solutions and delivery services, with food and beverage delivery platforms commanding a 75% share of restaurant orders.

Ready to Drink Coffee Market in Other Countries

The RTD coffee market in other Middle Eastern countries, including Bahrain, Iran, Iraq, Turkey, Jordan, and Yemen, presents a diverse landscape with varying consumption patterns and market dynamics. These markets are characterized by a growing young population increasingly attracted to Western coffee culture and convenient beverage options. The retail landscape in these countries is evolving, with both traditional and modern trade channels playing important roles in distribution. International coffee chains are gradually expanding their presence, particularly in countries like Bahrain, where boutique cafés are gaining popularity alongside established global brands. The market development in these countries is supported by urbanization trends, changing consumer lifestyles, and the growing influence of social media on beverage consumption patterns. The increasing focus on product innovation, particularly in terms of flavors and packaging, is helping drive market growth across these countries. This reflects the broader trends of coffee in the Middle East, where diverse consumer preferences and innovative offerings are shaping the MENA coffee industry.