Market Trends of middle east ready to drink coffee Industry
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
