The Middle East café market is witnessing remarkable growth, with branded coffee shop outlets expanding at an impressive compound annual growth rate (CAGR) of 8.1% through 2029. The findings, revealed in World Coffee Portal’s latest Project Café Middle East 2025 report, highlight key trends, consumer behavior, and the evolving landscape of the region’s coffee culture.
Market Expansion and Key Players
The report estimates the total number of branded coffee shop outlets across the region at 16,460, driven by strong demand in markets such as Saudi Arabia, the UAE, and Egypt. Saudi Arabia and the UAE are particularly influential, accounting for the majority of the region’s café market activity. Morocco, Saudi Arabia, and Egypt have emerged as the fastest-growing markets in the past 12 months, with growth rates of 19%, 16.5%, and 13.3%, respectively.
The region’s largest café chains are leading this expansion, focusing on specialty coffee and innovative offerings. The increasing preference for home-grown brands reflects a shift toward local flavors, with 74% of surveyed consumers favoring locally established chains.
Specialty Coffee and Consumer Trends
Specialty coffee continues to gain prominence across the region. Consumer preferences have evolved significantly, with 29% of surveyed individuals reporting a cappuccino as their beverage of choice during their last café visit. This is accompanied by rising demand for high-quality coffee experiences and an emphasis on sustainable practices, with 54% of industry leaders acknowledging sustainability as a priority in their markets.
Social media is a key driver of this growth, influencing consumer preferences and shaping café trends. Price consciousness also plays an essential role, especially given the competitive nature of the industry.
Food Pairings and Café Visits
The café experience is often accompanied by popular food items. Doughnuts, croissants, and cookies dominate consumer choices, reflecting the complementary relationship between coffee and pastries. Notably, 25% of consumers reported visiting coffee shops daily, with 67% drinking hot coffee daily.
Challenges and Opportunities
While trading conditions remain favorable—reported by 74% of industry respondents—operators face challenges such as pricing pressures and the need for continuous innovation. The report indicates that the average price of a 12oz cappuccino in the region is $3.70, which requires balancing affordability with premium offerings.
Future Outlook
The Middle East is poised to remain a critical growth area for the global café market, with specialty coffee and sustainability at the forefront. Investments in innovative concepts and a focus on local culture will likely shape the next wave of development.