Hot drinks like coffee and tea are immensely popular in Saudi Arabia, where they are deeply embedded in traditions of hospitality. These beverages are seen as more than just refreshments; they symbolise warmth, generosity, and a strong sense of community.
One key trend in the hot drinks market in Saudi Arabia is the increasing emphasis on health and wellness, driven by rising obesity rates and public health initiatives. The government's introduction of a 50% sugar tax on sugary beverages has significantly impacted sales of other hot drinks, especially chocolate-based powders.
Nestlé SA and Lipton Tea Factory FZE are the two most significant players in the hot drinks market in Saudi Arabia, leading in coffee and tea, respectively. In recent years, Nestlé has expanded its footprint with a range of premium instant coffee products under the Starbucks brand, offering both classic flavours and innovative blends.
Supermarkets and hypermarkets continue to lead the distribution of hot drinks in Saudi Arabia, having become the preferred destinations for many households for their weekly grocery shopping. Chains like LuLu and Carrefour are actively opening new outlets, typically offering a diverse selection of coffee brands and products.
Foodservice sales of hot drinks are outpacing their retail counterparts in terms of volume growth in 2024, primarily driven by consumers resuming their busy lifestyles outside the home. As life in Saudi Arabia normalises post-pandemic, individuals are increasingly investing in leisure and entertainment activities, often enjoying cups of tea or coffee with friends and family at cafés and speciality coffee shops.
Hot drinks are set to benefit significantly from Saudi Arabia's ambitious plan to attract over 100 million visitors annually by 2030, as outlined in its Vision 2030 strategy. In addition to religious tourism, both public and private sectors are collaborating to enhance tourist numbers by promoting leisure and entertainment, particularly in sports.
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Hot Drinks
This report originates from Passport, our Hot Drinks research and analysis database.
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