Hot drinks in 2024: The big picture
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.
2024 key trends
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.
Competitive landscape
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.
Retailing developments
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 vs retail split
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.
What next for hot drinks?
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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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in Saudi Arabia 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 Saudi Arabia, 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 Saudi Arabia 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 Saudi Arabia?
- To what extent are health considerations impacting consumption of Hot Drinks in Saudi Arabia?
- What are the traditional preferences in Hot Drinks in Saudi Arabia? 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 Saudi Arabia?
- Which are the leading brands in Hot Drinks in Saudi Arabia?
- How are products distributed in Hot Drinks in Saudi Arabia?
- 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 Saudi Arabia
Hot drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retailing developments
Foodservice vs retail split
What next for hot drinks?
DISCLAIMER
Coffee in Saudi Arabia
KEY DATA FINDINGS
Rising Importance of Coffee in Saudi Arabian Culture and Economy
Local coffee players make significant strides
Distribution landscape continues to evolve
Economic diversification, including focus on tourism, will support growth
Local coffee industry set for further expansion
International brands plan to expand their operations
Tea in Saudi Arabia
KEY DATA FINDINGS
Tea-drinking remains a popular local tradition, which extends to school canteens
Matcha tea gains popularity
Lipton continues to lead, despite growing competition
Vision 2030 strategy will support sales of tea
Innovation and health trends will drive demand
Discounters and warehouse outlets will continue to expand, while e-commerce offers new opportunities
Other Hot Drinks in Saudi Arabia
KEY DATA FINDINGS
Unhealthy image of other hot drinks continues to negatively impact sales
Nesquik continues to lead the market
Modern trade continues to lead distribution channels
Revamped sugar tax will lead to growing focus on healthier options
Increase in tourism should boost foodservice revenues
Convenience and affordability will influence distribution trends
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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Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Hot Drinks research and analysis database.
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