UAE Coffee Market Size
Over the last ten years, the coffee market in the UAE has transformed into one of the most fastest growing and iconic F&B markets in the Middle East. As of Q1-Q2 2025, the market is currently valued at over USD 3.2 billion and continues to grow steadily, with forecasts pointing to an annual growth rate of 8–9% through 2029.
This expansion is driven not only by the rise of specialty cafés but also by the surge in coffee pods, at-home consumption, and digitalized customer experiences.
The UAE, and Dubai in particular, is now positioning itself as the gateway for coffee and F&B brands entering the GCC. From global roasters seeking regional hubs to entrepreneurs launching boutique specialty cafés, the country provides both the infrastructure and consumer demand to make coffee one of the most resilient F&B categories in the region. This article explores updated 2025–2026 market figures, consumer trends, and proven strategies for entering the UAE coffee business.
UAE Coffee Market Size 2025–2026
The UAE coffee market remains one of the most advanced in the region, with clear segmentation across specialty, pods, and mainstream retail.
Total Market Value: ~USD 3.2 billion in 2025, expected to exceed USD 3.8 billion by 2027.
Specialty Coffee: USD 603.5 million in 2023 → forecasted USD 1.22 billion by 2030 (CAGR ~10.6%).
Coffee Pods & Capsules: USD 136.9 million in 2025 → forecasted USD 186.9 million by 2030 (CAGR ~6.4%).
Out-of-Home Sales: Expected to generate AED 1.05 billion (~USD 272 million) in 2025, supported by tourism, premium cafés, and growing middle-class demand.
This data highlights the dual opportunity: specialty coffee shops thrive in premium segments, while pods and retail channels capture the fast-growing at-home consumer.
Growth Drivers of UAE Coffee Industry
Over the past five years, the UAE coffee market growth has been steady and is still expected to grow at approximately 8.4% every year. Such factors contribute to this expansion:
High Disposable Income: Many people in Dubai and Abu Dhabi have a tendency to buy premium coffee brands, unique coffee blends, and coffee experiences.
Growing Tourism Sector: Since millions of tourists visit every year, coffee shops in malls, airports, and hotels remain popular.
Diverse Consumer Base: Since more than 80% of the UAEs population is expats, the market is driven by the globalization of consumer preferences, which means that businesses have to offer a variety of tastes and methods of preparation.
Key Coffee Trends in UAE (2025-2026)
The coffee sector in the UAE is changing. Any new entrant in the market should know the current trends that affect consumers and the business.
Rise of Specialty & Third-Wave Coffee – Specialty cafés now dominate the UAE market, accounting for a growing share of outlets. Customers are seeking single-origin beans, artisanal roasting, and cafés that emphasize sustainability and traceability. This “third-wave” movement has reshaped consumer expectations, especially among younger and expatriate audiences.
Premiumization of Coffee Experiences – Consumers are increasingly willing to pay more for quality. In Dubai’s luxury districts, paying AED 30 or more for a single cup is not unusual, and demand for exclusive blends, cold brews, and premium brewing methods continues to expand. For entrepreneurs, this opens a space for high-end boutique cafés and luxury coffee concepts.
Tech-Driven Coffee Shops – Some of the new entrants are using AI, mobile ordering, and loyalty apps to enhance the customer experience.
Sustainable and Eco-Friendly Practices – Consumers continue to be concerned with the origin and the material used in the packaging, resulting in an increase in sales of fair trade and biodegradable packaging
Coffee Pods & At-Home Consumption
A key trend shaping the UAE coffee market in 2025 is the specialty coffee and rise of at-home brewing. With consumers investing in coffee machines and capsule systems, pods have become a fast-growing sub-sector. The UAE coffee pods market is projected to grow from USD 136.9 million in 2025 to USD 186.9 million by 2030 (CAGR ~6.4%). This presents opportunities for global brands like Nespresso and Lavazza as well as niche local roasters entering the capsule segment.
Entering the UAE Coffee Market
Coffee Market UAE
Setting up a coffee business in the UAE can be very profitable if the entrepreneur clearly understands the market. This makes the UAE an ideal location for coffee entrepreneurs due to its status as a global business hub coupled with a high demand for coffee.
Reasons why the UAE is a good market for coffee businesses:
- Strong Café Culture: This paper presents the UAE as having a very developed café culture, which is preferred by millennials and working professionals seeking good coffee.
- Different Business Models: There are different types of settings that the entrepreneurs can choose to use, including specialty coffee shops, mobile kiosks, luxury cafes, and franchises.
- Growing Market Segments: Another trend that is emerging is the growth of coffee delivery and coffee subscription services owing to the growth of delivery apps.
- Coffee Market UAE Challenges: Why Entering the Market is Not Easy
However, launching and maintaining a successful coffee shop in the UAE is not without its challenges. Many business owners have made costly mistakes, which are a result of poor understanding of the market, legal regulations and a clear business strategy.
| Phase | Key Activities | Approx. Time |
|---|---|---|
| Market Research & Feasibility | Consumer profiling, competitor benchmarking, site demand scan, cost & revenue modeling, break-even and sensitivity | 3–4 weeks |
| Business Setup & Licensing | Company formation (mainland/free zone), trade license, food safety & municipality permits, basic compliance | 4–6 weeks |
| Location Selection & Lease | Shortlist sites, negotiate rent & key terms, sign lease/MoU, utilities setup | 2–4 weeks |
| Branding & Fit-Out | Concept & interior design, equipment procurement (espresso, grinders, water), signage, POS setup | 6–10 weeks |
| Hiring & Training | Recruit baristas & supervisors, train on recipes & SOPs, food safety, service standards | 3–5 weeks |
| Soft Launch & Marketing | Test menu, friends-and-family opening, influencer/PR seeding, loyalty setup | ~2 weeks |
| Full Launch | Grand opening, promo calendar, customer feedback loop, scale operations | — |
Regional Expansion via UAE – GCC Gateway Strategy
A lot of international coffee and coffee-related brands are looking to expand to the UAE or GCC. Dubai is increasingly recognized as the launchpad for scaling across the whole Gulf region. With advanced logistics and transportation solutions, free zones tailored to F&B businesses, and strong connectivity to Saudi Arabia, Qatar, and Kuwait, the UAE provides both regulatory ease and market access. Positioning in Dubai not only helps capture the local café culture but also sets the foundation for regional expansion into the wider Middle East coffee market.
Challenges of Starting a Coffee Business
Licensing and Legal Complexities – This is because the regulatory framework that regulates the business is intricate and involves obtaining trade licenses, food safety permits and municipality permits.
High Competition – This is because of the presence of thousands of international and local brands of coffee sellers, which means that to stand out, the company has to have strong brand identity.
Costly Setup and Operations – This is because the rent in the prime areas is relatively high and the operational costs which include high quality raw materials, equipment and the cost of the staff are also very high.
Local Taste – Since the population of the UAE is heterogeneous, it is crucial to know what your target customer profile looks like.
Poor Location Strategy – This is because location is a critical factor and, in particular, the rental yields are high in busy areas, but the foot traffic and visibility are also higher.
To reduce these risks, entrepreneurs should seek advice from the professionals who are well acquainted with the business environment in the UAE.
How Accurate Middle East Can Help to Start a Coffee Business UAE
At Accurate Middle East Research and Consulting, it is our pleasure to assist business people in expanding their businesses in the UAE coffee market. We have a team of professionals who will assist in entering the market in a strategic and very comfortable way.
Our Services for Coffee Business Owners:
- Market Research and Feasibility Study – In this paper, we explore the consumer taste, market trends and analysis of the competition.
- Business Setup & Licensing Assistance – This paper outlines the legal system in the UAE and how to set up a business with minimal legal issues.
- Location Analysis & Site Selection – This study presents the ideal locations for coffee shops based on traffic, demographics, and competition.
- Branding & Market Positioning – We also help in the development of the brand identity that will appeal to the UAE consumer.
- Supplier & Distribution Strategy – This paper will help businesses get the right suppliers and develop a good supply management system.
- Business Growth and Expansion Strategies – We also outline the strategies for growing the business, franchise opportunities, and investment ideas.
Start Your UAE Coffee Business with Accurate Middle East
To participate in the UAE’s coffee market, one needs to have a good product, a good understanding of the consumer’s needs, legal permits, and knowledge of the market trends. Whether you are planning to open a specialty café, coffee roasting business or an online coffee brand, Accurate Middle East Research and Consulting is ready to assist you in every aspect of the business.
Let’s Discuss Your Coffee Business Idea Today! If you are looking to venture into the UAE coffee market, then do it with us. Contact our team at Accurate Middle East to see how we can assist in making your coffee business plans a reality. Get in touch with us today to find out more. Or let’s meet at the biggest food show of the Middle East, Gulfood, in 2026.
Contact us via WhatsApp or over the phone in the UAE +971 50 599 5603. Alternatively, you can request a callback or a free consultation by clicking the button below or fill in the brief for market research or strategy to get a proposal within 24 hours.
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Author: | |
| Dr. Elena Zhukovskaya Senior Consultant, Partner | |
| 20+ years of experience in market research, business management, investor relations, and brand communications across the UAE, KSA, and GCC. Author of 50+ publications and a regular speaker at leading business events in the region. Linkedin profile |
