Demand for specialty coffee shops is growing in the UAE

Demand for specialty coffee shops is growing in the UAE

According to Research And Markets’ the ‘UAE Coffee Chain Market by Regions (Dubai, Abu Dhabi, Sharjah and rest of UAE), by Organized and Unorganized, by Food and Beverages – Outlook to 2021’ report the market has seen a shifting preference for modern coffee shops where people could sit and relax with a cup of coffee.


As customers have become more exposed to a variety of coffee, coffee farm information transparency and brewing methods, the demand for specialty coffee shops that focus on the use of single-origin beans (which involves coffee grown within a single known geographic origin) has increased.


Furthermore, digital transformation has helped various players in industry to increase their sales by better targeting their customers. The market has seen major players adopting sustainable procurement practices. In order to do so, the coffee chains have tied up directly with the farmers located in coffee producing procuring raw materials at a fair price, thus eliminating the middlemen.

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The UAE coffee chain market is dominated by international brands operating through franchise model. Along with organized chains there are number of local independent specialty coffee shops operating in the space. These chains compete on parameters such as geographic coverage, price, quality of food and beverages, services, customization, customer experience, ambience, promotional offers and brand image.


These organized players have played a significant role bringing in the modern caf culture in UAE. They have positioned coffee outlets as a place where people can socialize and relax along with a cup of coffee. Furthermore, the company’s marketing and advertising are designed strictly according to their respective target audience. 


According to the report, the 10 major organized coffee chains in UAE are: Caffe Nero, Cafe Bateel, Caribou Coffee, Costa Coffee, Dunkin Donuts, Gloria Jea’s Coffee, Krispy Kreme, Blends and Brews, Starbucks, and Tim Hortons.


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