Saudi Arabia’s food services landscape is experiencing a remarkable transformation, with the sector growing from SAR 63 billion to SAR 111 billion between 2019-2024. One segment has emerged as the clear standout performer: cafés. What started as a modest SAR 7.5 billion market representing 12% of food services has turned into a SAR 17 billion powerhouse, now commanding 16% of the total market. This café revolution reflects deeper shifts in Saudi consumer behavior, driven by generational changes, digital adoption, and evolving lifestyle preferences that are reshaping the kingdom’s hospitality landscape. Read on to know more!
1. Cafés have dramatically outpaced the broader food services market, achieving exceptional growth
While the overall food services market grew at a healthy pace, cafés have achieved remarkable expansion, increasing their market share from 12% to 16% of total food services between 2019-2024. This represents not just absolute growth, but a fundamental shift in consumer dining preferences. The café segment’s outperformance is driven by four key factors: a) increased café density improving accessibility across urban areas; b) growing consumer demand for café experiences; c) the rapid adoption of online ordering platforms; and d) the emergence of innovative café concepts that blur traditional category boundaries. This growth trajectory positions cafés as one of the most dynamic segments within Saudi Arabia’s evolving food services ecosystem.
2. Digital channels are driving unprecedented growth across both food services and coffee consumption
The online revolution has become a critical growth engine across Saudi Arabia’s food and beverage landscape. Food delivery channels have experienced remarkable growth, achieving a 41% CAGR from 2019-2024, with a notable spike during COVID-19 as restaurants faced closures due to social distancing measures.
This digital transformation extends beyond food services into the broader coffee retail market, where online coffee sales are growing at over 20% annually, significantly outpacing the overall coffee market’s 6% growth rate. The convergence of digital convenience and coffee consumption has created new opportunities for both established and emerging players, fundamentally changing how Saudis discover, order, and consume their daily coffee, whether through food delivery platforms or direct-to-consumer online coffee purchases.
3. Younger generations are fundamentally reshaping coffee culture through specialty preferences and digital engagement
Younger generations are transforming Saudi Arabia’s coffee landscape, with Gen Z and Millennials driving exciting changes in consumption patterns. These consumers are embracing specialty blends and personalized experiences, with 50% of Gen Z customizing their drinks to their preferences. This evolution extends to ready-to-drink coffee, sustainability priorities focused on ethical sourcing, and digital engagement through app-based loyalty programs and social media influence, fundamentally changing how Saudis discover, order, and consume coffee across the kingdom.
4. This consumer evolution is fueling the rise of specialty coffee chains and transforming market structure
The changing consumer preferences have translated into a structural transformation of Saudi Arabia’s café market, with specialty coffee shops significantly outpacing the broader café market. Chained specialist coffee and tea shops now dominate the landscape, growing at 23% annually, while unchained specialists maintain strong 19% growth, and other café formats expanded at 13% between 2019-24.
This specialty coffee boom is driven by multiple factors: a) flavor complexity and innovation including cold brew and nitro-coffee gaining popularity; b) health and wellness integration with consumers seeking reduced acidity and clean labels; c) single-origin and traceability preferences for locally grown beans; and d) the rise of artisanal brewing methods with certified baristas. The result is a market where specialty concepts are not just participating in growth but actively driving the transformation of Saudi Arabia’s coffee culture.
Conclusion
Saudi Arabia’s café market represents one of the kingdom’s most dynamic retail success stories, demonstrating how evolving consumer preferences can create entirely new market categories. The convergence of generational shifts, digital adoption, and lifestyle changes has transformed a traditional coffee culture into a SAR 17 billion specialty-driven opportunity. As younger consumers continue to drive demand for premium experiences, digital convenience, and sustainable options, the café sector is positioned for continued outperformance within the broader food services landscape. This transformation signals not just changing tastes, but a fundamental evolution in how Saudis socialize, work, and consume, with specialty coffee serving as both catalyst and beneficiary of these broader cultural shifts.
