Lebanon remains embroiled in an economic crisis with elevated inflation and a weak local currency negatively impacting consumer purchasing power, while local businesses have seen their margins squeezed. Added to this, political instability and deteriorating infrastructure continues to present challenges with homes and businesses having to rely on generators for electricity.
Sales of hot drinks benefited from improvements in Lebanon’s hospitality industry in 2023 and 2024. While foodservice sales saw healthy growth in 2024, retail sales of hot drinks also saw strong growth in volume terms in 2024.
Coffee consumption remains deeply rooted in Lebanese social traditions. Lebanese, Turkish or Arabic coffee (depending on how each person refers to it) is an important part of socialising among local people and drinking coffee is always offered at the end of any meal and during any social visit and few local people need much of an excuse to prepare and serve coffee to share with friends and family.
Despite everything that has impacted the market in recent years sales of hot drinks still registered healthy growth in retail volume terms in 2024. That being said, some grocery retailers in the south of Lebanon reported a drop in economic activity due to the spillover effect from the Israel-Hezbollah conflict.
While Lebanon’s private sector has recovered somewhat, the public sector is still bankrupt and the situation is getting much worse. Lebanon’s deeply rooted infrastructure issues have been further exacerbated with the continuation of the economic crisis and the spillover effect from the Israel-Hamas war.
Sales of hot drinks are likely to continue recording steady growth in retail volume terms over the forecast period with tea and coffee remaining staples of the local diet and culture.
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Hot Drinks
This report originates from Passport, our Hot Drinks research and analysis database.
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