The market for ready-to-drink coffee is growing rapidly in the Middle East and Africa, driven by increasing consumer demand. Factors such as a growing love for cold coffee, increased tourism and consumer demand for specialty options are further fueling this trend. Consequently, both multinational and local brands see significant growth opportunities in this emerging market.
Shifting coffee consumption trends
The Middle East and Africa region is currently undergoing a dynamic shift in coffee consumption trends, indicating a clear transformation. While traditional coffee remains a staple in many markets, evolving consumer preferences are reshaping the region’s coffee landscape considerably.
The rise of specialty coffee
Specialty coffee is gaining traction as specialty coffee shops become increasingly popular across various countries, reflecting changing consumer behavior. Cities such as Addis Ababa, Dubai, Riyadh and Cape Town are witnessing a surge in cafes focusing on high-quality coffee beans. According to the Dubai Multi Commodities Centre (DMCC), the UAE coffee market is projected to grow annually by 8.4 percent until 2029, with a 7.5 percent growth rate across the broader Middle East & Africa region.
Ready-to-drink coffee market growth
The RTD coffee market is seeing notable growth, driven by consumer demand for more convenient and refreshing coffee options. Sales in these regions have risen substantially in 2023, with growth rates of 13.5 percent in the UAE, 14.8 percent in Saudi Arabia and 14.9 percent in Morocco (Euromonitor 2024 Passport Report).
Climate influence on coffee preferences
A significant factor propelling this growth is the hot climate, which encourages consumers to switch from hot coffee to cooler, ready-to-drink alternatives. This shift is also supported by increased product distribution, making these drinks more accessible to consumers.
Emergence of local players
Multinationals dominate the RTD coffee market, benefiting from brand loyalty and extensive availability, though local players are rapidly emerging. These local brands are introducing innovative products, such as high-protein and flavored RTD coffees, which are expected to drive future market growth. The market is also experiencing a shift towards healthier options, with low-fat and high-protein variants gaining popularity, though classic flavors remain in demand.
Tourism boosts RTD coffee sales
In Saudi Arabia and the UAE, high temperatures and the reopening of these countries to tourism have further boosted RTD coffee sales. Additionally, initiatives focusing on nationalization and female empowerment, particularly in Saudi Arabia, align with broader economic goals and support long-term market expansion.
Future of RTD coffee in the region
As these markets continue to evolve, RTD coffee is positioned to become a staple beverage choice in the region, offering significant growth opportunities. Both multinational and local players stand to benefit from this expansion. Consequently, the RTD coffee trend is one to watch in the coming years.
Caroline Migiro,
business development manager at Finlays MEAC
finlays.net
@cmigiro
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