The UAE’s branded coffee and tea shop sector has reached AED 2.25 billion ($613 million) in annual sales, growing at an annual rate of 15 percent since 2022 — more than double the wider Middle East and Africa average, according to market intelligence firm Euromonitor International.
The rapid expansion is creating significant opportunities for homegrown brands, even as international chains compete for market share and supply chains face disruption from regional instability.
Dubai-based RAW Coffee Company, which sources beans from Uganda, Ethiopia, Burundi, Rwanda, Brazil, and Peru, has logged annual sales growth of between 15 and 19 percent since 2021. CEO Matt Toogood said independent operators are often better positioned to respond quickly than larger multinational chains, though the current logistics environment remains challenging, with freight costs reaching nearly six times pre-conflict levels.
Coffee Planet, founded in the UAE in 2005, reported revenue growth of 19 percent last year and now supplies coffee to more than 70 percent of the country’s four- and five-star hotels. The company operates a roaster in Jebel Ali outside Dubai and expects volumes to rise nearly a third this year. It also plans new roasting facilities in the UAE and Saudi Arabia as it expands across the Gulf and into international markets.
Industry observers say a clear shift towards locally driven operations is underway. Consumers increasingly value authenticity and provenance, giving homegrown roasters an edge over global franchises that may be slower to adapt to local tastes and supply conditions.
While growth is expected to moderate through 2026 as supply-chain pressures persist, the structural demand story remains compelling: the UAE’s young, affluent, and cosmopolitan population continues to drive premium coffee consumption at pace with the world’s most mature markets.
Source: AGBI / Euromonitor | Dubai Weekly
