GCC Coffee Machine Market Research Report: Forecast (2023-2028)
Market Definition
A coffee machine is a device commonly used in residential, commercial, industrial, and other places for brewing coffee. For brewing coffee, the machine uses coffee powder & boiled water. The coffee powder & cold water are manually inserted into the coffee machine, which heats the water inside the chamber before brewing. Coffee machines have been widely used for self-consumption or business purposes in households, corporate offices, institutions, restaurants, and other locations, further escalating the demand for coffee machines in the coming years.
Market Insights & Analysis: GCC Coffee Machine Market (2023-28)
The GCC Coffee Machine market is projected to grow at a CAGR of around 5.19% during the forecast period, 2023-28 due to the rising consumption of coffee across the region. The demand for coffee has mainly been witnessed from the residential, commercial, and public infrastructures in the GCC region. Thus, the growing construction of these infrastructures would drive the need for a coffee machine for providing food & beverage services, i.e., coffee for the individual, employees, and customers. The individuals at these places have been demanding coffee to remove stress & boost their energy levels for performing their tasks efficiently.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 5.19% |
| Country Covered | The UAE, Saudi Arabia, Oman, Qatar, Kuwait, Bahrain |
| Key Companies Profiled | Black & Decker, Breville Group Limited, BSH Home Appliances, De Longhi Group, Electrolux AB, illycaffè S.p.A, Morphy Richards, Robert Bosch GmbH, Panasonic Corporation, Luigi Lavazza S.p.A, Nestle, Philips Electronics, and others |
| Unit Denominations | USD Million/Billion |
Moreover, coffee that contains caffeine, a central nervous stimulant, is known for fighting against fatigue & increasing the energy level of the consumers. Additionally, the introduction of green and organic coffee in the region also witnessed a considerable demand which has enhanced the requirement for coffee machines among the end users.
Along with this, the surging tourist influx in the region, owing to the presence of diversified tourist attraction places such as theme parks, aquariums, museums, heritage sites, etc., would further drive the consumption of coffee in GCC countries. Aside from this, coffee has also been consumed in public places like metro stations, railway stations, and airports. The individuals prefer to consume coffee to refresh themselves at these places in the meantime waiting for their trains or flights.
Hence, this led to the opening of an increased number of restaurants, cafes, coffee shops, etc., in the region, subsequently fueling the demand for coffee machines in GCC. Therefore, it is projected that the GCC coffee machine market would experience substantial growth during 2023-2028.
Key Trend in the Market
The utilization of smart coffee with integrated Bluetooth, Wi-Fi, and artificial intelligence (AI) machines has been a recent trend in the GCC Coffee Machine market. Consumers could control the coffee machines with smart devices and get the coffee prepared upon their wish. The connectivity of the coffee machines with the smart devices allows the customers to figure out the caffeine dose and can monitor the coffee machine such as the amount of water, coffee beans, and flavors.
Additionally, the coffee machine could also prepare the coffee based on the set schedule or routine of the customers. Thus, the adoption of smart coffee machines would grow in the coming years due to their smart features and the presence of high disposable income among the population of the regional countries.
Market Segmentation
Based on the Type of Machine:
Here, the Drip Coffee Machine captured a significant market share in the GCC Coffee Machine market during the historical period. Customers have overwhelmingly preferred drip coffee machines due to their re-utilization feature. Several machine components, such as filters and cones, are reusable, contributing to the increased demand for drip coffee machines. Furthermore, the integration of new technologies with drip coffee machines is expected to drive the region's Coffee Machine market growth.
However, the Capsule Coffee Machine is also projected to enhance the growth of the Coffee Machine market in the coming years due to its ease of use, lightweight, and cost-effectiveness, compared to other coffee machines. Besides that, the lower energy consumption & maintenance costs are attracting more residential end-users to opt for capsule coffee machines in the forthcoming years.
Based on Distribution Channel:
Among them, the Wholesale/Retailers captured a notable share of the GCC Coffee Machine market during the historical period. Customers usually prefer to purchase the coffee machine from wholesalers or retailers which offer a wide range of options to choose from various brands, such as Nestle, Electrolux, Panasonic, etc., at a single point of sale. In addition, the wholesaler or retailer also offers various discount rates on purchasing coffee machines.
Thus, the availability of wider choices & price comparability between different coffee machine brands & models, which the wholesaler or retailer offers, would lead to growing its share in the GCC Coffee Machine market during the forecast period.
Based on End User:
Of them, Corporates & Institutions and Hotels held a considerable share of the GCC Coffee Machine market. The surging taste & preference of individuals towards the consumption of coffee has been one of the leading factors driving the demand for coffee machines in hotels & corporate offices. Moreover, an increasing need for non-alcoholic beverage drinks among millennials, consumer awareness of low-sugar drinks, and hectic work schedules are the factors driving coffee's popularity in these industries.
Coffee consumption reduces employee work stress & also contributes to the removal of fatigue among tourists caused by travel. As a result, the demand for coffee machines has increased to provide better refreshments and beverages to employees and tourists. In addition, the rising construction of the hotels due to the surging tourist influx would further drive the installation of coffee machines in the hotels during the forecast period.
Regional Landscape
Geographically, the GCC Coffee Machine Market expands across:
Of all the countries across the region, the UAE witnessed considerable growth in the GCC Coffee Machine market during the historical year, owing to the change in consumer preferences towards coffee & the busy lifestyle of the country's population. In addition, the growing youth interest in blended and flavored coffee has resulted in an increase in the demand for coffee machines.
Furthermore, the emerging number of expatriates in the country has also led to a surge in coffee demand. Besides, consumers have been adopting coffee as a daily routine due to its various health benefit, taste, and stress-releasing ability. For instance:
Thus, the surge in the construction of residential & industrial buildings, etc., in new towns & cities has further boosted the demand for coffee machines in the UAE.
Moreover, the expansion in corporate offices, leisure, entertainment, and tourist places would also provide an opportunity to boost the demand for coffee machines in hotels, restaurants, cafes, etc., to meet individuals' coffee requirements.
Recent Developments by Leading Companies
Market Dynamics:
Growth Driver: Expansion in the Residential & Commercial Sector Would Drive the Demand for Coffee Machines
The expansion in the commercial & residential sectors has led to the immense demand for coffee in the GCC due to the growing influence of western culture and the popularity of coffee products such as espressos & coffee pods among the working class & middle-aged population. GCC countries such as the UAE, Saudi Arabia, Kuwait, and others have been taking initiatives to diversify the economy of the respective countries from the oil & gas sector towards the commercial, IT, e-commerce, and tourism industry.
The expansion in these sectors has been boosting the establishment of an extensive range of residential buildings, corporate offices, malls, hotels, etc., which has further led to the requirement for coffee due to the surge in employees & tourists. Tourists from all over the world, especially European & American, have been more inclined towards the consumption of coffee, which led to the growth in the adoption of coffee machines in the region. Coffee machines in these infrastructures have been required to provide hospitality &d refreshment services to the individuals in these sectors.
Hence, the expansion in the construction, tourism, IT, and other sectors to meet the economic diversification target by the regional countries would augment the GCC Coffee Machine market in the forthcoming years.
Possible Restraint: High Maintenance Cost of the Machine to Restrain the Market Growth
One of the possible factors which have restrained consumers from purchasing the coffee machine is the high maintenance and servicing cost of the machines. Different maintenance costs that incurs frequently in the life cycle of the machine are descaling product cost, repair & spare parts cost, technician or labor cost, transportation cost, and on-site callout fees. The busy lifestyle of the population of the GCC regional countries finds it difficult to provide time & money for the maintenance of the devices. Hence, it inclines the buyer to refrain from using coffee machines in the residential sectors.
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Frequently Asked Questions
A. The GCC Coffee Machine Market is projected to grow at a CAGR of around 5.19% during 2023-28.
A. The Drip Coffee Machine is anticipated to emerge as an opportunity area for the leading players in the market during the forecast period.
A. The expansion of the commercial & residential infrastructures would drive the GCC Coffee Machine Market through 2028.
A. Black & Decker, Breville Group Limited, BSH Home Appliances, De Longhi Group, Electrolux AB, illycaffè S.p.A, Morphy Richards, Robert Bosch GmbH, Panasonic Corporation, Luigi Lavazza S.p.A, Nestle, Philips Electronics, and others are the top players in the GCC Coffee Machine Market during 2023-28.
A. The UAE is anticipated to dominate the GCC Coffee Machine Market during 2023-28.
A. The high maintenance cost is a possible restraint affecting the growth of the Global Coffee Machine Market during 2023-28.
