Saudi Arabia Cafes Market Grow with a CAGR of 8.23% through 2030F

The Saudi Arabia Cafes market is driven by a young population, urban lifestyle changes, and government support promoting café culture and local coffee consumption under Vision 2030.

According to TechSci Research report, “Saudi Arabia Cafes Market – By Region, Competition, Forecast & Opportunities, 2030F”, the Saudi Arabia Cafes market stood at USD 6.14 Billion in 2024 and is anticipated to grow USD 9.87 Billion by 2030 with a CAGR 8.23% during forecast period. The Saudi Arabia Cafes market is driven by the rising youth population. With a significant portion of the Kingdom’s population under the age of 30, there is a strong demand for modern, social, and lifestyle-oriented café experiences. Young consumers are increasingly seeking out trendy spaces for socializing, studying, and working, making cafés a preferred destination. This demographic is also more open to global coffee trends, specialty beverages, and innovative food offerings. Also, their active presence on social media platforms contributes to the popularity of aesthetically appealing and experience-focused café environments. As this tech-savvy generation continues to shape consumer behavior, café operators are adapting their concepts to align with evolving youth preferences, driving sustained market expansion.

The Saudi Arabia Cafes market is primarily driven by the government support for small and medium enterprises (SMEs). Under Vision 2030, the Kingdom aims to increase SMEs' contribution to GDP from 20% to 35% by 2030, recognizing their role in economic diversification and job creation. Initiatives led by Monsha’at, the General Authority for SMEs, provide financial assistance, training, and regulatory support to entrepreneurs, facilitating the establishment and growth of café businesses. Programs like the Kafalah loan guarantee scheme and the SME Bank enhance access to financing, while digital platforms connect SMEs with investors and service providers. These efforts have lowered entry barriers, enabling a new generation of café owners to innovate and expand across the country. As a result, the café sector is experiencing robust growth, contributing to the broader objectives of economic transformation and private sector empowerment.

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The Saudi Arabia Cafes market is segmented into ownership, chained cafes, distribution channel, and region.

Based on the distribution channel, the online segment is the fastest growing in the Saudi Arabia Cafes market, driven by driven by the increasing adoption of food delivery apps and digital ordering platforms. Consumers, especially younger demographics, prefer the convenience of ordering coffee and beverages through mobile apps and websites. The COVID-19 pandemic accelerated this shift, normalizing online purchases and contactless deliveries. Loyalty programs, app-based promotions, and subscription models further boosted digital engagement. Also, the integration of technology, such as real-time tracking and customized orders, has enhanced the online customer experience. As internet penetration and smartphone usage rise, the online café segment is set to grow rapidly.

Based on the region, Eastern is the fastest-growing region in the Saudi Arabia Cafes market, driven by a combination of economic development, urbanization, and changing consumer preferences. Cities like Dammam and Khobar are emerging as key hubs, attracting both local and international café chains. The region's youthful and diverse population is increasingly seeking modern, social spaces to gather, work, and relax, fueling demand for contemporary café experiences. Also, the government's Vision 2030 initiative, which aims to diversify the economy and promote the entertainment and hospitality sectors, has led to increased investments in infrastructure and tourism in the Eastern Province. The presence of major industrial zones and a growing expatriate community further contribute to the expanding café culture. Collectively, these factors position the Eastern region as a dynamic and fast-growing market for cafés in the Kingdom.

Major companies operating in the Saudi Arabia Cafes market are:

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

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“The Saudi Arabia Cafes market is expected to grow in the future owing to the cultural shift toward out-of-home consumption. Traditionally, social gatherings occurred within private residences, but evolving lifestyles and increased urbanization have led to a preference for public socialization spaces. Cafés have emerged as favored venues for social interactions, business meetings, and leisure activities, especially among the younger population. This trend is further supported by the government's Vision 2030 initiative, which promotes social liberalization and the development of the entertainment and hospitality sectors. The relaxation of social norms has encouraged both men and women to frequent cafés, fostering a more inclusive environment. As a result, cafés are not only places for enjoying beverages but also serve as communal spaces that reflect the Kingdom's ongoing social transformation, said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

"Saudi Arabia Cafes Market By Ownership (Standalone Cafes, Chained Cafes), By Chained Cafes(Domestic, International), By Distribution Channel (Retail Sales, Online), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of Saudi Arabia Cafes market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Saudi Arabia Cafes market.

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