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Hot drinks habits hold firm as coffee gains everyday relevance
Hot drinks in Iraq recorded rising value sales in 2025, with coffee contributing more to growth as tea remained mature. Supply fragmentation, weak regulatory oversight and parallel trade continued to disrupt consistency across imports and distribution, limiting premiumisation and complicating brand-building. Tea stayed central to daily routines and hospitality, while younger urban consumers expanded their repertoires through café occasions and gradual at-home experimentation. Over the forecast period, tea is set to remain the default hot drink, while coffee is poised to deliver most incremental expansion as on trade grows faster than retail and suppliers address gaps in availability, consumer awareness and product fit.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in Iraq with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Coffee
- Tea
- Other Hot Drinks
If you're in the Hot Drinks industry in Iraq, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Hot Drinks in Iraq report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Hot Drinks in Iraq?
- To what extent are health considerations impacting consumption of Hot Drinks in Iraq?
- What are the traditional preferences in Hot Drinks in Iraq? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Hot Drinks in Iraq?
- Which are the leading brands in Hot Drinks in Iraq?
- How are products distributed in Hot Drinks in Iraq?
- How is the rise of e-commerce changing the retail and competitive landscape?
- Have home seclusion and social distancing measures following COVID-19 benefited sales of Hot Drinks?
- Where is future growth expected to be most dynamic?
Hot Drinks in Iraq
Hot drinks habits hold firm as coffee gains everyday relevance
KEY DATA FINDINGS
Hot drinks sales rise amid rising interest in coffee
Tea traditions remain dominant as health concerns reshape preparation
Coffee culture expands despite price and familiarity barriers
On-trade growth strengthens trial while affordability shapes formats
Pricing dynamics remain stable in tea as coffee inflation builds
Structural and demographic forces continue to influence demand and distribution
Coffee set to drive incremental growth as tea stays saturated
Tea’s core role to remain intact despite wider experimentation
Distribution will stay store led as modern outlets edge forward
Ahmed Tea retains its leading role in tea
Nestlé strengthens its presence in coffee
Small local grocers leads as hypermarkets expands fastest
Limited impact of informal retailing, while on trade grows through café culture
Table 1 Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2020-2025
Table 2 Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2020-2025
Table 3 Retail Sales of Hot Drinks by Category: Volume 2020-2025
Table 4 Retail Sales of Hot Drinks by Category: Value 2020-2025
Table 5 Retail Sales of Hot Drinks by Category: % Volume Growth 2020-2025
Table 6 Retail Sales of Hot Drinks by Category: % Value Growth 2020-2025
Table 7 Foodservice Sales of Hot Drinks by Category: Volume 2020-2025
Table 8 Foodservice Sales of Hot Drinks by Category: % Volume Growth 2020-2025
Table 9 Total Sales of Hot Drinks by Category: Total Volume 2020-2025
Table 10 Total Sales of Hot Drinks by Category: % Total Volume Growth 2020-2025
Table 11 NBO Company Shares of Hot Drinks: % Retail Value 2021-2025
Table 12 LBN Brand Shares of Hot Drinks: % Retail Value 2022-2025
Table 13 Penetration of Private Label in Hot Drinks by Category: % Retail Value 2020-2025
Table 14 Retail Distribution of Hot Drinks by Format: % Volume 2020-2025
Table 15 Retail Distribution of Hot Drinks by Format and Category: % Volume 2025
Table 16 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2025-2030
Table 17 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2025-2030
Table 18 Forecast Retail Sales of Hot Drinks by Category: Volume 2025-2030
Table 19 Forecast Retail Sales of Hot Drinks by Category: Value 2025-2030
Table 20 Forecast Retail Sales of Hot Drinks by Category: % Volume Growth 2025-2030
Table 21 Forecast Retail Sales of Hot Drinks by Category: % Value Growth 2025-2030
Table 22 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2025-2030
Table 23 Forecast Foodservice Sales of Hot Drinks by Category: % Volume Growth 2025-2030
Table 24 Forecast Total Sales of Hot Drinks by Category: Total Volume 2025-2030
Table 25 Forecast Total Sales of Hot Drinks by Category: % Total Volume Growth 2025-2030
COUNTRY REPORTS DISCLAIMER
Key data findings
2025 developments
Coffee demand broadens as affordability and café culture reshape choice
Industry performance
Price pressure shapes value growth and purchasing behaviour
Coffee adoption strengthens, but category remains behind tea
On-trade expansion supports trial as equipment ownership stays low
Supply-side fragmentation limits consistency and long-term brand building
What’s next?
Coffee to deliver double-digit value growth, with brand-building becoming essential as cafés drive trial
Competitive fragmentation set to persist, limiting major launches
Health and wellness influences will shape trade-up behaviour
Competitive landscape
Nestlé leads instant coffee amid category expansion
MacCoffee focuses digital engagement, while parallel products distort competitive dynamics
Channels
Small local grocers sustains widest retail reach
Specialists accelerate as standard ground coffee rises
Category data
Table 26 Retail Sales of Coffee by Category: Volume 2020-2025
Table 27 Retail Sales of Coffee by Category: Value 2020-2025
Table 28 Retail Sales of Coffee by Category: % Volume Growth 2020-2025
Table 29 Retail Sales of Coffee by Category: % Value Growth 2020-2025
Table 30 NBO Company Shares of Coffee: % Retail Value 2021-2025
Table 31 LBN Brand Shares of Coffee: % Retail Value 2022-2025
Table 32 Forecast Retail Sales of Coffee by Category: Volume 2025-2030
Table 33 Forecast Retail Sales of Coffee by Category: Value 2025-2030
Table 34 Forecast Retail Sales of Coffee by Category: % Volume Growth 2025-2030
Table 35 Forecast Retail Sales of Coffee by Category: % Value Growth 2025-2030
Key data findings
2025 developments
Tea demand stays broad as maturity limits growth
Industry performance
Tea sales rise in Iraq as saturation becomes more visible
Daily routines keep tea central, with health concerns shaping preparation
Out-of-home occasions support growth, but retail keeps the lead
Loose tea leads at home, while tea bags gain ground in offices
Competitive pressure intensifies as pricing shifts
Green tea attracts more interest, but black tea leads
What’s next?
Tea will remain Iraq’s default hot drink
Quality-led value growth predicted for forecast period
Competitive consolidation set to increase
Competitive landscape
Ahmed Tea leads category value share
Innovation remains limited as churn persists
Channels
Small local grocers anchor tea distribution
Modern grocery and foodservice expand from a smaller base
Category data
Table 36 Retail Sales of Tea by Category: Volume 2020-2025
Table 37 Retail Sales of Tea by Category: Value 2020-2025
Table 38 Retail Sales of Tea by Category: % Volume Growth 2020-2025
Table 39 Retail Sales of Tea by Category: % Value Growth 2020-2025
Table 40 NBO Company Shares of Tea: % Retail Value 2021-2025
Table 41 LBN Brand Shares of Tea: % Retail Value 2022-2025
Table 42 Forecast Retail Sales of Tea by Category: Volume 2025-2030
Table 43 Forecast Retail Sales of Tea by Category: Value 2025-2030
Table 44 Forecast Retail Sales of Tea by Category: % Volume Growth 2025-2030
Table 45 Forecast Retail Sales of Tea by Category: % Value Growth 2025-2030
Key data findings
2025 developments
Other hot drinks remains niche despite strong value growth
Industry performance
Value sales rise as inflation and cocoa costs lift prices
Chocolate-based powder drinks anchor demand
On-trade drives category relevance amid limited retail
What’s next?
Coffee alternatives set to support further category expansion
Dominance constrains choice and slows broader penetration
Health cues and café-led trial will shape awareness building
Competitive landscape
Nestlé continues to lead through scale and distribution
Secondary brands gain visibility but remain constrained
Brand support focuses on child-oriented health positioning
Channels
Small local grocers enjoy widest reach
Modern grocery drives growth among affluent urban consumers
Category data
Table 46 Retail Sales of Other Hot Drinks by Category: Volume 2020-2025
Table 47 Retail Sales of Other Hot Drinks by Category: Value 2020-2025
Table 48 Retail Sales of Other Hot Drinks by Category: % Volume Growth 2020-2025
Table 49 Retail Sales of Other Hot Drinks by Category: % Value Growth 2020-2025
Table 50 NBO Company Shares of Other Hot Drinks: % Retail Value 2021-2025
Table 51 LBN Brand Shares of Other Hot Drinks: % Retail Value 2022-2025
Table 52 Forecast Retail Sales of Other Hot Drinks by Category: Volume 2025-2030
Table 53 Forecast Retail Sales of Other Hot Drinks by Category: Value 2025-2030
Table 54 Forecast Retail Sales of Other Hot Drinks by Category: % Volume Growth 2025-2030
Table 55 Forecast Retail Sales of Other Hot Drinks by Category: % Value Growth 2025-2030
The following categories and subcategories are included:
Hot Drinks
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- Fresh Coffee Beans
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- Fresh Ground Coffee Pods
- Standard Fresh Ground Coffee
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- Instant Standard Coffee
- Instant Coffee Mixes
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- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
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- Chocolate-based Flavoured Powder Drinks
- Malt-based Hot Drinks
- Non-Chocolate-based Flavoured Powder Drinks
- Other Plant-based Hot Drinks
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This report originates from Passport, our Hot Drinks research and analysis database.
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