Saudi Arabia Cafes Market
Saudi Arabia Cafés Market, by Category (Bakery [Bread, Cookies, Cakes, Others], Confectionery [Chocolate, dry fruits, Others], Beverages [Coffee, Tea, Shakes, Others], Others), Type (Seating Café, Take-Away Café); Ownership (Restaurant Chains, Standalone Outlets); Sales Channel (Retail, Online), Region (Western, Central, Southern, Eastern, and Northern) Trend Analysis, Competitive Market Share & Forecast, 2018-2028
- Published Date: September 2022
- Report ID: BWC22191
- Available Format: PDF
- Page: 216
Report Overview
Saudi Arabia Cafés Market is growing owing to increasing per capita income, growing western influence, rising number of tourists, changing consumer tastes and preferences as well as expansion in café services.
Saudi Arabia Cafés Market- Industry Trends & Forecast Report 2028
Saudi Arabia Cafés Market was worth USD 6,271.0 million in 2021 and is further projected to reach USD 16,299.2 million by the year 2028, exhibiting a CAGR of 13.1% in the forecast period. The rapid expansion of the market is predominantly due to the increasing per capita income, growing western influence, rising number of tourists, changing consumer tastes and preferences as well as expansion in café services. Major technological advancements in the Saudi Arabia café market have facilitated the development of online platforms. This has resulted in the expansion of the online café services industry. This is because internet accessibility, feasibility, user friendliness, wide restaurant selection, and convenience of the online café services is providing a better customer experience.
Cafés Overview
Cafés are small restaurants serving simple and light food as well as beverages. A restaurant that generally serves tea and coffee along with some light snacks is called a café. The term ‘Café’ comes from the French word meaning ‘coffee’. The Saudi Arabia Cafés Market predominantly has chain outlets in the country like Chilis and TGI Fridays which are ruling the market.
The changing taste and preferences of consumers and growing inclination towards adoption of western food items due to exposure through internet and social media is increasing influence as well as demand of cafés across the country. This is influencing the key market players to envisage and expand its chain outlets thus, increasing their hold on the Saudi Arabia Cafés Market during the forecast period
Saudi Arabia Cafés Market Trends
Growth Drivers
Increasing Focus on Tourism Industry
Saudi Arabia's tourism industry is changing due to public and private efforts to diversify the tourist base and purpose of visiting Saudi Arabia. The Saudi Central Bank (also known as SAMA) reports that Saudi Arabia's total tourism expenditure, including residents and foreigners, rose by 52% from SR 63.4 billion in the previous year to SR 95.6 billion (USD 25.5 billion) in 2021.
As part of Saudi Vision 2030, the Kingdom of Saudi Arabia is planning a series of tourism and entertainment projects like the Red Sea Project, a new racing circuit for Formula 1 racing in Qiddiya, a six flags theme park, and various new movie theatres to increase annual visitor numbers which drive the market growth. The increasing number of foreign workers to work on these new projects and millions of pilgrims visiting due to the presence of famous Hajj places in Mecca & Medina in the country also have boosted tourism and led to the growth of the coffee market in Saudi Arabia in forecast period.
Surging Demand for Restaurant Chains of Cafés
The restaurant chains of cafés are more preferred over standalone outlets of cafés by Saudi Arabians. This is because of the growing popularity of coffee, fast foods, and casual hangouts amongst the growing youth population. Saudi Arabia is home to famous cafés like Brew92, Bafarat Café, Café Magad, Boho Café, among others. Most of the cafés follow the strategy of customization and localization through intelligent modifications in their menus to cater to the changing tastes and preferences of consumers.
For example, Boho Café in Saudi Arabia has a diverse cuisine. It not only serves Arabic food but also serves American, Italian and International foods. They offer eggs, English breakfast, shakshuka with cheese, French toast, pancakes for breakfast. For lunch and dinner, customers can choose from a variety of options like appetizers, salads, steaks, boho burgers, pasta, barbeque, desserts, drinks, and many more.
Restraints
High Dependence on Online Platform
The advent of the Covid-19 pandemic has the permanently changed the scenario of the Saudi Arabia café market. Due to the user friendliness and convenience of the online platforms, people prefer to stay at home and order food. This increasing dependence on online platforms has left various positions in the restaurants empty due to lack of demand for labour. On the other hand, the demand for delivery partners has increased.
This has led to increased installation of cloud kitchens, which only offer takeout and delivery, and do not offer dining experience. On the other hand, some small and traditional restaurants may not consider playing in the delivery space at all. Moreover, a significant proportion of consumers lack trust in online payments via digital platforms like Google Pay and Skrill. Moreover, some consumers are not technologically sound and have difficulty in operating digital payment platforms
Impact of COVID-19 On the Saudi Arabia Cafés Market
Due to lockdown across the region many chained café outlets in Saudi Arabia faced temporary closures which greatly affected the business. Also, there was shortage of raw materials and labor due to complete lockdown. As social distancing was the norm at the time so café to be operational even after the lifting of national lockdown restrictions was next to impossible. And a significant number of outlets also closed permanently due to difficult economic conditions which they faced and found it impossible to sustain any further. However, the increasing use of online platform to order food from cafés from the convenience of home saw an upsurge and is expected to boost the demand for cafés influencing the growth of the Saudi Arabia Cafés Market during the forecast period.
Saudi Arabia Cafés Market - By Category
Based on category, the Saudi Arabia cafes market is segmented into bakery, (breads, cookies, cakes, others), confectionery, (chocolates, dry fruits, others), beverages (coffee, tea, shakes, others), and others. The beverages segment comprising coffee accounts for the largest market share due to its increasing popularity and demand over recent years as well as Asia and North America are the largest exporters of coffee across Saudi Arabia. Next Shakes in the Beverages segment is also of high demand among the consumers of the country but due to lockdown its sales dropped as the companies were unaware of the online platform and could not cater to it through online. But due to rising disposable incomes as well as changing tastes and preferences of consumers demand for shakes is likely to bounce-back and impact the growth of the Saudi Arabia Cafés Market during the forecast period.
Saudi Arabia Cafés Market – By Type
Based on type, the Saudi Arabia Cafés Market is segmented into seating café and take-away café. The take-away café segment registers the fastest growth in the market due to its increasing popularity after the pandemic which imposed social distancing norm to avoid crowd at one place. Also, this segment has the convenience to eat at your own place avoiding the formality of an outside place occupied with people. Some international brands that are on an expansion spree are Applebee’s, Outback Steak House, Chili’s, and TGI Fridays, marking their presence. Seating Café accounts for the largest share in the market due to rising youth population who prefers fast food at some hangout joints. Hence, all these factors are surging the growth of the Saudi Arabia Cafés Market during the forecast period.
Saudi Arabia Cafés Market - Regional Insights
Geographically, the Saudi Arabia Cafés Market is segmented into western, central, eastern, southern and northern region. The Western region segment accounts to hold the largest share in the market owing to the well-established chain restaurants and rising disposable income. This trend is followed by the central region and is expected to maintain its dominance in the forecast period due to changing lifestyle and preferences, rising per capita income, and growing population. Hence, all these factors are likely to increase the demand for cafés resulting in expansion of brands and impacting the growth of the Saudi Arabia Cafés Market during the forecast period.
Competitive Landscape
Key players operating in Saudi Arabia Cafés market are Sulalat Coffee, Applebee’s, Bateel, Starbucks, Elixir Bunn Coffee Roasters, T.G.I. Friday’s, Brew92, Chili’s, Bafarat Café, Java Time, Sizzler House, dr.CAFE COFFEE, Café Magad, Fuddruckers, Boho Café, Outback Steakhouse, Derby Coffee International and other prominent players.
The Saudi Arabia Cafés Market is highly consolidated with the presence of several brands of chain restaurants in the country. The market leaders maintain their dominance by making substantial investments in the growth of their restaurant chain, using cutting-edge technology to their products, and giving their consumers high-quality food.
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March 2022: The Middle East's largest economy is the Kingdom of Saudi Arabia, and AG Café, the Tim Hortons master franchise in the region, intends to expand the brand's presence in the country by opening more than 200 coffee shops by 2024. "AG Café" supports KSA's 2030 goal and is eager to participate in it, as well as to profit from its growth opportunities.
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June 2022: Coffee Planet, a specialty roaster from the UAE, will open in Saudi Arabia. The largest specialty coffee roaster in the Middle East right now, Coffee Planet is situated in Dubai and operates in 20 nations throughout the GCC, Asia, and Europe. The KSA has a strong coffee culture, and the expansion of Coffee Planet into the country comes as 2022 is formally proclaimed the Saudi Coffee Year.
Scope of Report:
Attribute | Details |
Years Considered | Historical data – 2018–2021 |
Base Year – 2021 | |
Forecast – 2022–2028 | |
Facts Covered | Revenue in USD Million |
Market Coverage | Saudi Arabia (Western, Central, Southern, Eastern, Northern) |
Product/Service Segmentation | By Category, By Type, By Ownership, By Sales Channel |
Key Players | Key players operating in Saudi Arabia Cafés market are Sulalat Coffee, Applebee’s, Bateel, Starbucks, Elixir Bunn Coffee Roasters, T.G.I. Friday’s, Brew92, Chili’s, Bafarat Café, Java Time, Sizzler House, dr.CAFE COFFEE, Café Magad, Fuddruckers, Boho Café, Outback Steakhouse, Derby Coffee International and other prominent players. |
By Category
- Bakery
- Breads
- Cookies
- Cakes
- Others
- Confectionery
- Chocolates
- Dry Fruits
- Others
- Beverages
- Coffee
- Tea
- Shakes
- Others
By Type
- Seating Café
- Take-Away Café
By Ownership
- Restaurant Chains
- Standalone Outlets
- Others
By Sales Channel
- Retail
- Online
By Region
- Western
- Central
- Southern
- Eastern
- Northern
- Research Framework
- Research Objective
- Product Overview
- Market Segmentation
- Executive Summary
- Saudi Arabia Cafés Market Insights
- Industry Value Chain Analysis
- DROC Analysis
- Growth Drivers
- Surging Demand for Chain Outlets of Cafes
- Increasing Internet Penetration Boosting the Demand
- Increasing Focus on Tourism Industry
- Changing Consumer Taste & Preferences
- Restraints
- High Dependence on Online Platform
- Opportunity
- Surging Demand for Coffee in Saudi Arabia
- Challenges
- Increasing health consciousness and the growing rate of obesity
- Growth Drivers
- Technological Advancement/Recent Development
- Regulatory Framework
- Porter’s Five Forces Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of New Entrants
- Threat of Substitutes
- Intensity of Rivalry
- Saudi Arabia Cafés Market Overview
- Market Size & Forecast by Value, 2018–2028
- By Value (USD Million)
- Market Share & Forecast
- By Category
- Bakery
- Breads
- Cookies
- Cakes
- Others
- Confectionery
- Chocolates
- Dry Fruits
- Others
- Beverages
- Coffee
- Tea
- Shakes
- Others
- Others
- Bakery
- By Type
- Seating Café
- Take-Away Café
- By Ownership
- Restaurant Chains
- Standalone Outlets
- By Sales Channel
- Retail
- Online
- By Region
- Western
- Central
- Southern
- Eastern
- Northern
- By Category
- Market Size & Forecast by Value, 2018–2028
- Western Saudi Arabia Cafés Market
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- Market Size & Forecast by Value, 2018–2028
- By Value (USD Million)
- Market Share & Forecast
- By Category
- By Type
- By Ownership
- By Sales Channel
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- Central Saudi Arabia Cafés Market
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- Market Size & Forecast by Value, 2018–2028
- By Value (USD Million)
- Market Share & Forecast
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- By Category
- By Type
- By Ownership
- By Sales Channel
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-
- Southern Saudi Arabia Cafés Market
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- Market Size & Forecast by Value, 2018–2028
- By Value (USD Million)
- Market Share & Forecast
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- By Category
- By Type
- By Ownership
- By Sales Channel
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- Eastern Saudi Arabia Cafés Market
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- Market Size & Forecast by Value, 2018–2028
- By Value (USD Million)
- Market Share & Forecast
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- By Category
- By Type
- By Ownership
- By Sales Channel
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-
- Northern Saudi Arabia Cafés Market
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- Market Size & Forecast by Value, 2018–2028
- By Value (USD Million)
- Market Share & Forecast
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- By Category
- By Type
- By Ownership
- By Sales Channel
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- Competitive Landscape
- List of Key Players and Their Offerings
- Saudi Arabia Cafés Company Market Share Analysis, 2021
- Competitive Benchmarking, By Operating Parameters
- Key Strategic Developments (Mergers, Acquisitions, Partnerships)
- Impact of Covid-19 on Saudi Arabia Cafés Market Industry
- Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook)
- Starbucks
- Applebee’s
- Chili’s
- Fuddruckers
- dr. CAFÉ
- Elixir Bunn Coffee Roasters
- Brew92
- Bateel
- Bafarat Café
- Sulalat Coffee
- Sizzler House
- Java Times Café
- Other Prominent Players
- Key Strategic Recommendations
- Research Methodology
- Qualitative Research
- Primary & Secondary Research
- Quantitative Research
- Market Breakdown & Data Triangulation
- Secondary Research
- Primary Research
- Breakdown of Primary Research Respondents, By Region
- Assumptions & Limitations
- Qualitative Research
List of Figures
Fig 1: Saudi Arabia Cafés Market Segmentation
Fig 2: Saudi Arabia Cafés Market Size, By Value (USD Million)
Fig 3: Saudi Arabia Cafés Market Share (%), By Category, By Value (in %), 2021
Fig 4: Saudi Arabia Cafés Market: Supply Chain Analysis
Fig 5: Porters Five Forces Analysis
Fig 6: Saudi Arabia Cafés Market Size, By Value (USD Million), 2018–2028
Fig 7: Saudi Arabia Cafés Market Share (%), By Category, By Value, 2018–2028
Fig 8: Saudi Arabia Cafés Market Share (%) for Bakery, By Category, By Value, 2018–2028
Fig 9: Saudi Arabia Cafés Market Share (%) for Confectionery, By Category, By Value, 2018–2028
Fig 10: Saudi Arabia Cafés Market Share (%) for Beverages, By Category, By Value, 2018–2028
Fig 11: Saudi Arabia Cafés Market Share (%), By Type, By Value, 2018–2028
Fig 12: Saudi Arabia Cafés Market Share (%), By Ownership, By Value, 2018–2028
Fig 13: Saudi Arabia Cafés Market Share (%), By Sales Channel, By Value, 2018–2028
Fig 14: Saudi Arabia Cafés Market Share (%), By Region, By Value, 2018–2028
Fig 15: Western Cafés Market Size, By Value (USD Million), 2018–2028
Fig 16: Western Cafés Market Share (%), By Category, By Value, 2018–2028
Fig 17: Western Cafés Market Share (%) for Bakery, By Category, By Value, 2018–2028
Fig 18: Western Cafés Market Share (%) for Confectionery, By Category, By Value, 2018–2028
Fig 19: Western Cafés Market Share (%) for Beverages, By Category, By Value, 2018–2028
Fig 20: Western Cafés Market Share (%), By Type, By Value, 2018–2028
Fig 21: Western Cafés Market Share (%), By Ownership, By Value, 2018–2028
Fig 22: Western Cafés Market Share (%), By Sales Channel, By Value, 2018–2028
Fig 23: Central Cafés Market Size, By Value (USD Million), 2018–2028
Fig 24: Central Cafés Market Share (%), By Category, By Value, 2018–2028
Fig 25: Central Cafés Market Share (%) for Bakery, By Category, By Value, 2018–2028
Fig 26: Central Cafés Market Share (%) for Confectionery, By Category, By Value, 2018–2028
Fig 27: Central Cafés Market Share (%) for Beverages, By Category, By Value, 2018–2028
Fig 28: Central Cafés Market Share (%), By Type, By Value, 2018–2028
Fig 29: Central Cafés Market Share (%), By Ownership, By Value, 2018–2028
Fig 30: Central Cafés Market Share (%), By Sales Channel, By Value, 2018–2028
Fig 31: Southern Cafés Market Size, By Value (USD Million), 2018–2028
Fig 32: Southern Cafés Market Share (%), By Category, By Value, 2018–2028
Fig 33: Southern Cafés Market Share (%) for Bakery, By Category, By Value, 2018–2028
Fig 34: Southern Cafés Market Share (%) for Confectionery, By Category, By Value, 2018–2028
Fig 35: Southern Cafés Market Share (%) for Beverages, By Category, By Value, 2018–2028
Fig 36: Southern Cafés Market Share (%), By Type, By Value, 2018–2028
Fig 37: Southern Cafés Market Share (%), By Ownership, By Value, 2018–2028
Fig 38: Southern Cafés Market Share (%), By Sales Channel, By Value, 2018–2028
Fig 39: Eastern Cafés Market Size, By Value (USD Million), 2018–2028
Fig 40: Eastern Cafés Market Share (%), By Category, By Value, 2018–2028
Fig 41: Eastern Cafés Market Share (%) for Bakery, By Category, By Value, 2018–2028
Fig 42: Eastern Cafés Market Share (%) for Confectionery, By Category, By Value, 2018–2028
Fig 43: Eastern Cafés Market Share (%) for Beverages, By Category, By Value, 2018–2028
Fig 44: Eastern Cafés Market Share (%), By Type, By Value, 2018–2028
Fig 45: Eastern Cafés Market Share (%), By Ownership, By Value, 2018–2028
Fig 46: Eastern Cafés Market Share (%), By Sales Channel, By Value, 2018–2028
Fig 47: Northern Cafés Market Size, By Value (USD Million), 2018–2028
Fig 48: Northern Cafés Market Share (%), By Category, By Value, 2018–2028
Fig 49: Northern Cafés Market Share (%) for Bakery, By Category, By Value, 2018–2028
Fig 50: Northern Cafés Market Share (%) for Confectionery, By Category, By Value, 2018–2028
Fig 51: Northern Cafés Market Share (%) for Beverages, By Category, By Value, 2018–2028
Fig 52: Northern Cafés Market Share (%), By Type, By Value, 2018–2028
Fig 53: Northern Cafés Market Share (%), By Ownership, By Value, 2018–2028
Fig 54: Northern Cafés Market Share (%), By Sales Channel, By Value, 2018–2028
Fig 55: Saudi Arabia Cafés Company Market Share Analysis, 2021
List of Tables
Table 1: Saudi Arabia Cafés Market Size, By Category, By Value (USD Million), 2018–2028
Table 2: Saudi Arabia Cafés Market Size for Bakery, By Category, By Value (USD Million), 2018–2028
Table 3: Saudi Arabia Cafés Market Size for Confectionery, By Category, By Value (USD Million), 2018–2028
Table 4: Saudi Arabia Cafés Market Size for Beverages, By Category, By Value (USD Million), 2018–2028
Table 5: Saudi Arabia Cafés Market Size, By Type, By Value (USD Million), 2018–2028
Table 6: Saudi Arabia Cafés Market Size, By Ownership, By Value (USD Million), 2018–2028
Table 7: Saudi Arabia Cafés Market Size, By Sales Channel, By Value (USD Million), 2018–2028
Table 8: Saudi Arabia Cafés Market Size, By Region, By Value (USD Million), 2018–2028
Table 9: Western Cafés Market Size, By Category, By Value (USD Million), 2018–2028
Table 10: Western Cafés Market Size for Bakery, By Category, By Value (USD Million), 2018–2028
Table 11: Western Cafés Market Size for Confectionery, By Category, By Value (USD Million), 2018–2028
Table 12: Western Cafés Market Size for Beverages, By Category, By Value (USD Million), 2018–2028
Table 13: Western Cafés Market Size, By Type, By Value (USD Million), 2018–2028
Table14: Western Cafés Market Size, By Ownership, By Value (USD Million), 2018–2028
Table 15: Western Cafés Market Size, By Sales Channel, By Value (USD Million), 2018–2028
Table 16: Central Cafés Market Size, By Category, By Value (USD Million), 2018–2028
Table 17: Central Cafés Market Size for Bakery, By Category, By Value (USD Million), 2018–2028
Table 18: Central Cafés Market Size for Confectionery, By Category, By Value (USD Million), 2018–2028
Table 19: Central Cafés Market Size for Beverages, By Category, By Value (USD Million), 2018–2028
Table 20: Central Cafés Market Size, By Type, By Value (USD Million), 2018–2028
Table 21: Central Cafés Market Size, By Ownership, By Value (USD Million), 2018–2028
Table 22: Central Cafés Market Size, By Sales Channel, By Value (USD Million), 2018–2028
Table 23: Southern Cafés Market Size, By Category, By Value (USD Million), 2018–2028
Table 24: Southern Cafés Market Size for Bakery, By Category, By Value (USD Million), 2018–2028
Table 25: Southern Cafés Market Size for Confectionery, By Category, By Value (USD Million), 2018–2028
Table 26: Southern Cafés Market Size for Beverages, By Category, By Value (USD Million), 2018–2028
Table 27: Southern Cafés Market Size, By Type, By Value (USD Million), 2018–2028
Table 28: Southern Cafés Market Size, By Ownership, By Value (USD Million), 2018–2028
Table 29: Southern Cafés Market Size, By Sales Channel, By Value (USD Million), 2018–2028
Table 30: Eastern Cafés Market Size, By Category, By Value (USD Million), 2018–2028
Table 31: Eastern Cafés Market Size for Bakery, By Category, By Value (USD Million), 2018–2028
Table 32: Eastern Cafés Market Size for Confectionery, By Category, By Value (USD Million), 2018–2028
Table 33: Eastern Cafés Market Size for Beverages, By Category, By Value (USD Million), 2018–2028
Table 34: Eastern Cafés Market Size, By Type, By Value (USD Million), 2018–2028
Table 35: Eastern Cafés Market Size, By Ownership, By Value (USD Million), 2018–2028
Table 36: Eastern Cafés Market Size, By Sales Channel, By Value (USD Million), 2018–2028
Table 37: Northern Cafés Market Size, By Category, By Value (USD Million), 2018–2028
Table 38: Northern Cafés Market Size for Bakery, By Category, By Value (USD Million), 2018–2028
Table 39: Northern Cafés Market Size for Confectionery, By Category, By Value (USD Million), 2018–2028
Table 40: Northern Cafés Market Size for Beverages, By Category, By Value (USD Million), 2018–2028
Table 41: Northern Cafés Market Size, By Type, By Value (USD Million), 2018–2028
Table 42: Northern Cafés Market Size, By Ownership, By Value (USD Million), 2018–2028
Table 43: Northern Cafés Market Size, By Sales Channel, By Value (USD Million), 2018–2028
Table 44: List of Key Players and Their Offerings
Table 45: Competitive Benchmarking, By Operating Parameters
Table 46: Merger and Acquisition (Past and Upcoming)
Table 47: Starbucks Company Overview
Table 48: Starbucks Financial Analysis
Table 49: Applebee’s Company Overview
Table 50: Chili’s Company Overview
Table 51: Fuddruckers Company Overview
Table 52: dr. CAFÉ Company Overview
Table 53: Elixir Bunn Coffee Roasters Company Overview
Table 54: Brew92 Roasters Company Overview
Table 55: Bateel Company Overview
Table 56: Bafarat Café Company Overview
Table 57: Sulalat Coffee Company Overview
Table 58: Sizzler House Company Overview
Table 59: Java Times Café Company Overview
Market Segmentation
By Category
- Bakery
- Breads
- Cookies
- Cakes
- Others
- Confectionery
- Chocolates
- Dry Fruits
- Others
- Beverages
- Coffee
- Tea
- Shakes
- Others
By Type
- Seating Café
- Take-Away Café
By Ownership
- Restaurant Chains
- Standalone Outlets
- Others
By Sales Channel
- Retail
- Online
By Region
- Western
- Central
- Southern
- Eastern
- Northern
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