COMPETITIVE LANDSCAPE
Lipton maintains its leadership of tea due to its diverse product portfolio
In 2025, Lipton Tea Factory FZE maintained its leadership of tea in Saudi Arabia in retail value terms, driven by its strong brand recognition and diverse product portfolio. The company's Lipton brand offers an extensive range of teas, including black, green, and fruit/herbal varieties, thereby catering to the varied preferences of consumers.
Hassan Mohammed Alkbous Factory sees a rising trend due to quality products
In 2025, Hassan Mohammed Alkbous Factory, ranking third in retail value terms, continued to distinguish itself as the most dynamic player in tea in Saudi Arabia with its Al-Kbous Tea brand. The company's heritage, strategic expansion, and commitment to delivering quality products at affordable prices were key factors in its success.
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Overview:
Understand the latest market trends and future growth opportunities for the Tea 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.
If you're in the Tea 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 Tea 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 Tea in Saudi Arabia?
- To what extent are health considerations impacting consumption of Tea in Saudi Arabia?
- What are the traditional preferences in Tea 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 Tea in Saudi Arabia?
- Which are the leading brands in Tea in Saudi Arabia?
- How are products distributed in Tea 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 Tea?
- Where is future growth expected to be most dynamic?
Tea in Saudi Arabia - Category analysis
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
Hot Drinks in Saudi Arabia - Industry Overview
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
The following categories and subcategories are included:
Tea
-
- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
Tea
This is the aggregation of Black Tea, Fruit/Herbal Tea, Green Tea, Instant Tea, and Other Tea.
See all of our definitionsWhy 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 Tea research and analysis database.
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