Premiumisation in coffee and health trend in tea drive growth
In 2025, hot drinks in Saudi Arabia saw a solid rise in retail value sales, driven by premiumisation in coffee and health-conscious consumption in tea. Coffee experienced strong growth, led by speciality and premium formats, while in tea, heathy variants including fruit/herbal tea and green tea gained popularity. Other hot drinks declined due to supply constraints and shifting consumer preferences. Nestlé maintained its leading position due to its strength in coffee, while retail e-commerce continued to grow its share of distribution, driven by digital innovation and changing retail dynamics. Sales are expected to continue growing, with coffee driving retail growth, and tea benefiting from cultural traditions and health trends.
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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
Premiumisation in coffee and health trend in tea drive growth
KEY DATA FINDINGS
Overall solid performance, driven by premiumisation in coffee
Health and wellness shape innovation in tea
Supply constraints and changing consumer preferences weigh on other hot drinks
Coffee expected to continue driving growth as café culture thrives
Further innovation likely as the competition intensifies
Distribution set to be shaped by digitalisation and changing retail dynamics
Nestlé invests to enhance its appeal and maintain its sales
Barnies Saudi Arabia sees the strongest retail rise as it expands aggressively
Food/drink/tobacco specialists sees share growth in coffee
Infrastructure development drives the growth of retail e-commerce
Foodservice continues to take share from retail
COUNTRY REPORTS DISCLAIMER
Coffee in Saudi Arabia
KEY DATA FINDINGS
Coffee sees a dynamic value rise as premiumisation continues
Retail value and volume sales of coffee soar in Saudi Arabia in 2025
Growing consumer demand for quality coffee drives dynamism for fresh coffee
The outlook for coffee in Saudi Arabia is highly positive in both retail and foodservice
Digital, technological, and AI-driven innovations set to come to the forefront in coffee
Legislative developments for the foodservice channel in Saudi Arabia
Nestlé strengthens its leadership in coffee thanks to constant development
Barnies Saudi Arabia continues its strong retail rise
New players are emerging despite the intense competition
Food/drink/tobacco specialists dominates as quality is increasingly important
Discounters rises as outlets expand and consumers seek savings
Tea in Saudi Arabia
KEY DATA FINDINGS
Tea performs well, driven by rise in tourism and popularity of healthier variants
Retail value sales of tea maintain solid growth in Saudi Arabia in 2025
Consumers turn towards healthier options such as fruit/herbal tea and green tea
Outlook for tea in Saudi Arabia is positive for both retail and foodservice
Digital and technological advancements expected in tea
Legislative, health, and sustainability developments in tea
Lipton maintains its leadership of tea due to its diverse product portfolio
Hassan Mohammed Alkbous Factory sees a rising trend due to quality products
Supermarkets and hypermarkets remain leading distribution channels for tea
Retail e-commerce sees dynamism as the infrastructure expands
Other Hot Drinks in Saudi Arabia
KEY DATA FINDINGS
Health trend, rising prices, and supply problems negatively impact other hot drinks
Other hot drinks declines due to high prices and rising health awareness
Decline is also due to supply problems and preference for tea and coffee
Other hot drinks set to see constrained retail growth amid supply challenges and shifting preferences
Digital and technological advancements in other hot drinks
Extension of mandatory nutritional labelling regulations to other hot drinks
Other hot drinks continues to be led by Nestlé, and it halts its share decline
Hintz maintains its rising trend, but other hot drinks remains highly fragmented
Hypermarkets and supermarkets continue to lead other hot drinks
Discounters sees dynamism from a low base as consumers seek value
COUNTRY REPORTS DISCLAIMER
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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