Rapid Starbucks, Costa Coffee growth in MENA signal burgeoning hot drinks culture: analysts
Coffee, tea category may grow by 6.2%.
If the steady stream of Starbucks and Costa Coffee outlets arriving in the Middle East and North Africa (MENA) region is anything to go by, hot drinks expenditure is poised to see robust growth this year.
According to BMI Research, the region is high and close to mature hot drinks industry will boost growth in the coffee and tea category.
“We forecast the category will grow by 6.2%, owing to a large and growing hot drink culture. Increasing investment from international coffee shops across the region will further boost and diversify the consumption of coffee and tea,” added BMI Research.
“The influx of Starbucks and Costa Coffee across more developed Middle East markets will underpin our positive outlook on rising hot drinks spending,” it asserted.
BMI Research posits that non-alcoholic sales in the region will inch up 3.4% over 2016, after a 13.7% drop in 2015.
“The region will experience strong growth in non-alcoholic drinks sales in 2017, peaking to 9.4%, while we forecast regional sales to stabilise towards the end of our forecast period growing by an average of 6.7% over 2019 and 2020,” noted BMI Research.
