Saudi Arabia Cafes Market by Region, Competition, Forecast & Opportunities, 2020-2030F

The Saudi Arabia Cafes Market was valued at USD 6.14 Billion in 2024 and is projected to reach USD 9.87 Billion by 2030, rising at a CAGR of 8.23%. The market is expanding steadily, driven by a youthful population eager for contemporary and sociable dining spaces. With more than 60% of the population under the age of 30, there is a pronounced appetite for cafés that offer inviting atmospheres to socialize, study, or work.

Rising urbanization and increasing disposable incomes are also fueling café visits, as global coffee culture gains traction among Saudi consumers. Furthermore, the government's Vision 2030 initiative, including support for the Saudi Coffee Initiative, has encouraged café development through investments in local coffee production and support for entrepreneurial ventures. Relaxed social norms and a cultural shift toward experiential consumption are further boosting the café sector across both major cities and secondary urban centers in the Kingdom.

Key Market Drivers

Rapid Urbanization & Changing Lifestyles

The café industry in Saudi Arabia is being significantly driven by rapid urban development and evolving consumer lifestyles. Urban population growth continues to rise, with a 0.2 percentage point increase recorded in 2023 alone. As urban environments expand and modern infrastructure emerges, there is growing demand for casual, yet stylish spaces that reflect contemporary tastes. Young Saudis, in particular, are embracing cafés as multifunctional venues for socializing, working, and casual meetings. This trend is reinforced by increased disposable income and greater exposure to international dining concepts. Moreover, the fast-paced nature of urban life has led to the growing popularity of accessible, quick-service cafés. The expansion of digital ordering and delivery services also complements this demand, enhancing the reach and convenience of café operators across the Kingdom’s key cities.

Key Market Challenges

Intense Competition Among Major Players

The café industry in Saudi Arabia is facing mounting competition as both international franchises and domestic chains vie for consumer attention. Global brands such as Starbucks, Tim Hortons, and Dunkin’ are contending with a new wave of emerging Saudi coffee houses and specialty cafés that cater to more refined tastes. This saturation is especially pronounced in high-footfall urban locations, where market density makes it increasingly difficult for new entrants to find prime real estate. As competition intensifies, café operators are under pressure to differentiate through unique branding, personalized customer experiences, and frequent promotional campaigns. Franchise scalability and maintaining service consistency also present operational hurdles. To stay competitive, brands must innovate their offerings while building strong loyalty programs and adapting to local consumer preferences.

Key Market Trends

Rise of Specialty Coffee

Specialty coffee is gaining prominence in Saudi Arabia, driven by an increasingly informed and quality-conscious consumer base. While traditional Arabic coffee holds cultural value, modern consumers are now favoring premium, ethically sourced beans and artisanal brewing methods. Specialty cafés are embracing this shift by offering single-origin and cold brew options crafted using precision equipment.

The trend is further supported by national efforts to promote domestic coffee cultivation, particularly in regions such as Jazan, known for producing Arabica beans. For example, in November 2023, the Public Investment Fund-owned Saudi Coffee Company announced plans for a one-million-square-meter model farm in Jazan to enhance the production of Coffea Arabica. This initiative underscores the government’s strategic push to diversify the economy and elevate local coffee supply chains. As a result, specialty coffee continues to shape consumer preferences and fuel growth across Saudi Arabia’s evolving café landscape.

Key Players Profiled in this Saudi Arabia Cafes Market Report

• Dunkin Donuts
• Barn's
• Starbucks
• Tim Hortons
• Costa Coffee
• Mochachino
• Derby Coffee
• dr.CAFE COFFEE
• Café Bateel
• Molten Chocolate Café

Report Scope:

In this report, the Saudi Arabia Cafes Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Saudi Arabia Cafes Market, by Ownership:

• Standalone Cafes
• Chained Cafes

Saudi Arabia Cafes Market, by Chained Cafes:

• Domestic
• International

Saudi Arabia Cafes Market, by Distribution Channel:

• Retail Sales
• Online

Saudi Arabia Cafes Market, by Region:

• Eastern
• Western
• Northern & Central
• Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Saudi Arabia Cafes Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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