Middle Eastern Coffee Market Set To Soar To Over $11bln In 2025 – CoffeeTalk

5

The Middle Eastern coffee market is projected to reach $11.5 billion in 2025, according to industry experts. The impact of climate change, increasing production costs, and a supply chain in need of innovation are all combining to push up prices for coffee consumers. Shouq Bin Redha, exhibition director of World of Coffee Dubai, says that the value of coffee will soar as everyone will be impacted.

Prices of Arabica, one of the market’s most traded and available coffee varieties, have been volatile over the past 12 months, with the commodity showing a price range of $1.70 per pound to a high of $3.47 per pound. The overall annual volatility figure for 2024 was in the 44% range, one of the highest witnessed over the past two decades and significantly higher than the average mean of the 28% to 30% range seen over the same duration.

Coffee remains a market predominantly traded by large and leveraged hedge funds and traders having a commercial reason to get involved. Kim Thompson, founder and managing director of Dubai-based Raw Coffee Company, says the supply chain issues, including slow shipping, labour shortages, and rising transportation costs, are an ongoing concern but stressed there was “no intention” to pass the financial burden onto customers. Raw Coffee Company’s profits increased 18% last year and it forecasts another 15% hike in demand in 2025, despite Thompson saying the Dubai market is “saturated.”

Growing brands like ROR Coffee Solutions aim to absorb as much of these rising costs as possible by streamlining operations, leveraging sustainable practices, and fostering direct relationships with coffee farmers. The branded coffee shop market in the region grew by 11% last year, led by Saudi Arabia, which accounts for 46% of all outlets. Morocco is forecast to be the fastest-growing market at 19.2 percent compound annual growth rate.

Lee Safar, founder of The Daily Coffee Pro Podcast by Map it Forward and a strategic business adviser in the coffee industry, says that the solution to stabilize the price is for coffee traders to buy coffee that has been grown either with regenerative agriculture or agroforestry, which enhances biodiversity, soil health, and water retention.

Read More @ AGBI

Source: Coffee Talk

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy