FUELING COFFEE AND TEA INDUSTRY’S GROWTH IN THE MIDDLE EAST
While drinking coffee has long been a tradition in many Arab countries, tea consumption has also finally penetrated the regional market, boosted by the influx of tea-loving expatriates who swear by its numerous health benefits. Neha Mistry, project manage
The UAE lies at the center of a vibrant coffee and tea industry in the Middle East. Aside from its high level of consumption, the emirates also serves as a re-export hub for hot drinks, including coffee and tea, along with other, similar beverages. According to a report released by the Brazilian Export and Investment Promotion Agency (Apex-brasil), the country exported coffee and tea worth USD 368.7 million in 2015, 42.7 percent of which went to Saudi Arabia, Russia, Kuwait, Oman, Qatar and other key international markets.
While coffee still accounts for a bigger chunk of the UAE’S total hot beverage sales, tea and other powder-based hot drinks have been steadily catching up over the year, the report further notes. The same Apex-brasil study shows that the local hot drinks market will be worth USD 1.01 billion in 2019, up from USD 774.5 million in 2015.
Additionally, industry experts are confident that the UAE’S coffee market alone will experience more than 30 percent growth over the next four years, due to a continuous upsurge in demand. Zagat, the F&B online resource, has calculated that more than 4000 tea and coffee houses are now operating in the country, serving 82 percent of the population who admit to drinking coffee daily.
New tastes and demands
Young consumers with high disposable income in the UAE are the main market influencers and growth drivers, prompting companies to offer new flavors and ingredients with a modern twist to satiate this key segment’s tastes and demands.
Specialty coffees, such as organic varieties, as well as teas known for their health benefits, are fast gaining ground in the region, supported by growing numbers of consumers who are now looking for healthy food and beverage choices and alternatives. Apex-brasil says it is for this reason that beverages such as fruit tea, Italian coffee and hot drinks with added vitamins and minerals will remain a draw for consumers. The Tea Company’s new brand of loose leaf tea is another example of a healthier alternative beverage, as is the Cold Brew Green Tea. Both have no artificial flavors or chemicals. Cold Brew Green Tea is stored in a refrigerator to bring out its sweet and smooth taste. Cold-brewing is also seen as environmentally friendly, since it eliminates the water heating process, thereby promoting energy conservation.
Other varieties of drinks that are becoming more popular among bolder coffee and tea lovers include the specialized nitro coffee beverages, which are perfected by adding nitrogen to cold brew coffee; coffee-infused teas, which are created by drying the coffee cherry husk and mixing it with tea blends; and the healthy mushroom coffee drinks, which are prepared by adding mushrooms to the blend. With the mushroom flavor hardly noticeable, the latter is not only nutritious but also calming, eliminating the risk of coffee jitters.
A focus on health
Healthy alternatives are just one of several influential trends that are reshaping the regional market. Aside from a sharper focus on these beverages, the regional market has also taken a keen interest in sustainability initiatives. Take, for instance, Dubai, where efforts are being deployed to reduce waste and raise environmental consciousness among citizens and residents. As an example, coffee shop owners, in line with Dubai Municipality’s directives, are encouraging patrons to bring their own mugs or cups when ordering their favorite drinks, in a bid to help reduce the use of disposable cups across cafes. Many outlets across the UAE are following suit, as part of their initiatives to become responsible corporate citizens of the nation. Other regional market trends include home roasting and sourcing of green beans from China.