The UAE is the growing coffee shop market in the Middle East with Dubai as the central point. Many foreign company’s set foot in this market since the mid-1990s. This attracts coffee supply distributors who distributes to local shops. Hence UAE providing a lot of sales opportunities for the coffee exporters and importers.
The industry of coffee shops in Dubai is getting much bigger and thus, the competition getting more furious. Let’s look at some of the opportunities in the Middle east’s coffee shop markets, cultural relation with coffee consumption, health trends influencing the market and ultimately the growth of the coffee market.
The coffee is an integral part of Arab culture. The word ‘qahwa’ and ‘majlis’, which means coffee and a place of sitting together respectively forms, custom of welcoming guests for public gatherings and religious ceremonies. The friends and family will sit together and steaming coffee will be served in tiny cups from dallah, a long spouted jug. This is very common in religious functions across Saudi Arabia, Oman, and Qatar. Since 2015, this practice has been protected by UNESCO’s Intangible Cultural Heritage register.
The influence of the health and wellness trend is reflecting on coffee usage in the United Arab Emirates. The government imposed a 50% excise tax on sugary soft drinks and 100% on energy drinks in 2017. Thus the people have changed their drinking habits to a healthier alternative like coffee. This opened a huge market for wholesale coffee suppliers, like East To Middle East FZE.
The Middle East and Africa are going to witness a hike in Compound annual growth rate (CAGR) of 7.5% in the forecast period of 2019-2024. The coffee consumption is increasing in urban areas. The increasing demand for coffee consumption provides more opportunities in domestically and internationally for African coffee. Demand for Arabica in North America and Europe is getting high. This is going to trigger a much higher growth in Africa’s coffee market, especially in Ethiopia.
The rise in middle-class income is also a reason for market growth. Now, there is a new coffee culture is emerging in countries like Saudi Arabia and the UAE. This leads to a steep rise in coffee exporting. You can check the United Arab Emirates – Customs Regulations for exporting business. Every year, more specialty stores for origin-specific coffees are opening in this region to meet the customer demand.
African coffee products are going to dominate the global market in the next five years. The rise will reach up to more than 2 million bags per year. Top coffee-producing countries like Ethiopia, Kenya, Tanzania, etc. are going to benefit this.
Ethiopia, the origin of Arabica coffee, is the largest coffee exporter in Africa. Since Arabica is used in most of the specialty stores, organic Ethiopian coffee beans has more sales opportunities. According to the United States Department of Agriculture (USDA), in the year 2018/19, Ethiopian coffee exports reached 3.98 million bags (238.8 metric tons), making it one of the most important African exporters and the tenth-largest exporter in the world.