Hot drinks in the United Arab Emirates is a well-established industry. Unlike soft drinks, which has many new and fast-growing categories, hot drinks already has a considerable consumer base and growth limitations.
Global warming is negatively impacting the price of key hot drinks categories, namely coffee and tea. Insufficient rainfall is causing poor harvests and supply shortages, a trend that is driving up the average cost of both coffee and tea due to the higher prices of raw materials.
The competitive landscape of hot drinks in the United Arab Emirates is mostly represented by international brands which have global recognition. Nescafé is the most established brand within instant coffee in the United Arab Emirates.
In the United Arab Emirates, the culture of corner shops remains strong, especially in the cities outside of Dubai and Abu Dhabi. This is why both coffee and tea have a strong presence not only within supermarkets and hypermarkets, but also within small local grocers.
While coffee is present in both channels, it is recording faster growth through foodservice in 2024. The increasing number of tourists to the United Arab Emirates, emerging numbers of specialist coffee shops and relatively low price-sensitivity within this channel are the main drivers for coffee’s success within foodservice.
Coffee is expected to remain the strongest performer over the forecast period, supported by an established coffee culture in the United Arab Emirates, combined with increasing interest in innovation. Functionality within hot drinks is expected to be in high demand from consumers who want to invest in healthier lifestyles.
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Hot Drinks
This report originates from Passport, our Hot Drinks research and analysis database.
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