The GCC, or Gulf Cooperation Council, refers to a Middle Eastern political alliance between Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, established in 1981. Over the last forty years, the GCC’s member states have been among the most rapidly developing countries in the world. 

Saudi Arabia is a serial, international, multi-industry investor; Dubai is the world’s busiest international business airport; Qatar hosted the 2022 FIFA World Cup; and Kuwait City’s Urban Development Plan intends to develop the capital into a global financial centre. 

Middle Eastern coffee culture is among the oldest in the world; the beverage is seen as a symbol of hospitality, a socialising glue used in much the same way that alcoholic drinks are in Western Europe or North America. But cold coffee is something new. 

Initially popularised by an American affinity for iced beverages, cold coffee has quickly become more popular than its warm counterpart in specific markets. Younger shoppers especially prefer the convenience, ready-to-drink, more functional nature of coffee when it’s served cold. 

For the GCC and Middle East, where coffee has traditionally been a hot, slow, and social affair, will cold coffee truly take root? We think so. 

To learn more about the development of cold coffee in the Middle East and its potential for expansion, we spoke to Greg Dawson, co-founder of The Egg Consultancy in Dubai, UAE.

GCC coffee market statistics and trends 

Overall, GCC coffee revenue was estimated at $6.84 billion in 2024, with $2.43 billion coming from retail channels like supermarkets and convenience stores and $4.40 billion from restaurants and cafés. Spurred on by rapid urban development, the HoReCa sector (hotels, restaurants, and cafés), remains the key driver of modern coffee culture in the GCC. 

“Coffee culture in the GCC region is experiencing significant growth, driven by evolving consumer preferences and a deep-rooted tradition of coffee consumption,” Greg confirms. 

“Local brands are continuing to open sites and are seeing expansion that exceeds even the larger international brands.”

Saudi Arabia, the largest market of the six GCC nations, boasts over 8,900 branded coffee shops alone, operated by over 120 different brands, an increase of 11.15% compared to the year before. Overall, the Saudi Arabian coffee market is worth $1.38 billion. Meanwhile, the UAE is home to 27,000 restaurants and cafés and 1,200 hotels, half of which are in Dubai, the capital.

“Saudi Arabia has seen a boom in specialty coffee shops, with local brands like Half Million and Barn’s expanding rapidly. The government designated 2022 as the “Year of Saudi Coffee” to highlight its cultural importance,” adds Greg. 

“Meanwhile, Dubai has become a hub for specialty coffee, with flourishing local artisanal roasters and speciality coffee shops. The World of Coffee Dubai event attracts global industry leaders annually.”

Despite regional conflicts, geopolitical tensions, and market uncertainty, coffee culture continues to thrive in the GCC. World Coffee Portal’s report on the wider MENA Region forecasts positive growth, noting that 75% of regional coffee industry leaders it interviewed reported good trading conditions and sustained sales growth. 

The trends at play in the GCC coffee space echo broader international ones: menu variety, coffee quality, sustainability, and certifications. Social media also plays a key role in determining success – creative, inventive brands are well-received. 

Cold coffee is on the rise, too, suiting warmer climates and higher consumer demands for variation, innovation, and convenience. The total Middle East ready-to-drink coffee market was valued at $175.4 million by Mordor Intelligence and is forecasted to exceed $290.5 million by 2030. Just like young Europeans or North Americans, the Millenial and Gen Z populations of the GCC live increasingly fast-paced urban lifestyles and want coffee beverages that keep up.

Why will the GCC become a cold coffee stalwart?

The majority of international coffee cultures – Australian, British, East Asian, and Scandinavian – take their cues from the United States. While America may not be the source of every key coffee trend, it tends to popularise and globalise the ones that stick – especially when it comes to cold coffee. 

Iced lattes, cold brew, RTD coffee, nitro coffee – America began ordering them in droves, and now the rest of us do. When comparing the consumer preferences of the United States and the Middle East, it’s hard to ignore the compatibilities that began to promise cold coffee growth in the GCC. 

“There’s a rising demand for cold brews, nitro coffee, and RTD canned coffee, especially among younger consumers,” Greg adds. 

Weather plays a key role in the performance of cold coffee beverages – although, in recent years, even seasonal barriers are breaking down. The GCC is home to the warmest year-round climates, rendering this a moot point – it’s rarely going to be too cold for a cold brew. 

Of course, as mentioned, the GCC has a strong tradition of hot drinks to overcome, but the United Kingdom managed it. In the UK, iced coffee sales have experienced 22% CAGR over the last five years, double the rate of the rest of Europe. So promising is British interest in cold coffee that limited edition iced coffee launches have been growing 83% year on year. 

The presence of multi-national branded chains is also key to the development of cold coffee preferences. Brands like Starbucks, Tim Hortons, and Dunkin’ have played a key role in introducing new cultures to the Frappuccino and other flavoured, indulgent cold coffee options, and they are popping up across the GCC. 

The region also boasts a mature specialty coffee scene, generally responsible for driving industry innovation, including alternative brewing and serving styles. Cold brew, nitro coffee, and flash-chilled coffee came from the artisanal segment. Homegrown businesses like %Arabica, Coffee Planet, and Tres Marias are already introducing locals to alternative cold formats. 

The GCC has the potential to become one of the world’s leading coffee markets due to several key factors,” says Greg. 

Arabic coffee has deep historical roots in the region, making coffee an integral part of daily life and social gatherings. From an investment and business perspective, Saudi Arabia aims to be a global coffee powerhouse by 2030, with sizeable multi-million dollar initiatives to boost domestic coffee production. Meanwhile, Dubai is positioning itself as a global hub for coffee trade.”

“The rise of coffee festivals, competitions, and influencer-driven coffee trends is further fueling market growth. With a high-income, urbanised, and tech-savvy demographic, the demand for premium, specialty, and experiential coffee is seemingly only set to increase.”

As GCC urbanisation and development continue at a rapid pace, the region will only grow in stature as a key international coffee hub. 

At Hardtank, we specialise in the manufacturing of best-in-class commercial cold brew coffee systems and quality private label RTD coffee products. We offer low MOQs, quick turnaround times, and global coverage, including the GCC. 

To source your own commercial equipment, private label RTD line, or simply an introductory chat, get in touch with our team directly. 

You can watch a recording of our recent RTD coffee masterclass here!

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