The Middle East and Africa hot drinks market is rapidly expanding, led by coffee’s rising momentum and deep-rooted tea culture. Saudi Arabia emerges as a coffee hub through national investments and retail innovation. Despite Nestlé’s lead, the market remains fragmented, shaped by local champions, evolving consumer preferences and diverse retail dynamics across countries. Continued growth is driven by youth demographics, premiumisation and a shift towards health-conscious, affordable offerings.
This report comes in PPT.
The MEA region ranks fifth globally in hot drinks retail value yet recorded the most dynamic growth rate over 2019-2024 and is projected to maintain the highest CAGR through 2029. Despite low per capita consumption, the region offers significant untapped potential due to its youthful and expanding population.
While coffee holds the largest retail value in MEA’s hot drinks market, tea ranks second globally after Asia Pacific, with Egypt, Morocco and Iraq dominating volumes but with Morocco, South Africa and Saudi Arabia driving value growth in tea. In coffee volumes, Ethiopia and Algeria are top performers, but value growth is driven by Saudi Arabia, Israel, Algeria and South Africa.
Saudi Arabia stands out for its aggressive investment in coffee, particularly through the Saudi Coffee Company and its “Saudi Sip of Excellence” initiative. These efforts support domestic production and café culture while enhancing global visibility for Saudi-grown Arabica.
Across the Middle East and Africa, supermarkets, hypermarkets, forecourts and coffee roasteries focus on their omnichannel strategies, with e-commerce gaining momentum. This growth is driven by mobile-app offers, loyalty programmes, express delivery and value-orientated offerings, reflecting a shift towards conscientiously careful consumer behaviour.
Despite Nestlé’s dominance (17% regional share), the MEA market remains fragmented, with local champions such as Strauss (Elite Coffee, Israel), Badawy & Sons (Al Arousa, Egypt), AMS Baeshen (Rabea, Saudi Arabia), Coffee Planet and Alokozay International (UAE). Nestlé’s upcoming Saudi plant in 2025 will intensify competition as multinationals and regional players such as Saudi Coffee Company, Barns and Coffee Planet vie for growth amidst premiumisation and affordability.
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