This reinforces the reputation of Dubai as a global trading hub for the commodity, with businesses involved in manufacturing, wholesale and retail, import and re-export, as well as the retail of hot coffee in cafes and restaurants, ready-to-drink coffee in grocery stores and retail outlets.
According to Research and Marketing’s coffee market report 2021, the size of the global coffee market in 2021 is estimated at $108 billion, and anticipated to reach $144.68 billion in 2025. The momentum to retail sales powered by e-commerce, the increased preference for instant coffee, and the demand for specialty coffee led to the growth in the number of companies engaged in the coffee business.
According to the BRL sector report, Bur Dubai accounted for the largest share of the companies engaged in the trading of coffee with 368 licences followed by Deira (243) and Hatta (4 licences), while the top sub-regions are based in Burj Khalifa, Al Ras, Al Barsha 1, Dubai Investments Park 1, Al Marar, Hor Al Anz East, Al Quoz 3, Al Karama, Trade Centre 1, and Port Saeed.
Limited Liability companies accounted for 64% of the total, followed by Sole Establishments at 20%, and One-Person Limited Liability Companies at 13%. The rest of the legal forms included; Branches of companies based in other Emirates, Branches of Free Zone Companies and Civil companies.
The report showed that the total number of licences issued during 2021 increased by 148% compared to 2020, when 69 licences were issued, compared to 171 licenses in 2021. Emiratis top the list of investors in the trading of coffee at 31% of the total followed by other nationalities such as British, Italian, Turkish, French, Egyptian, Jordanian, and Kuwaiti.
Several Emirati companies in the trading of coffee have expanded to global markets from Dubai as well opening their branches in several countries through the services provided by Dubai Industries and Exports, an agency of DET, in a short period of time.
The UAE-origin Coffee Plant, for example, has expanded to more than 20 countries around the world. This company is an example of the vital role played by Dubai Industries and Exports, in driving the sustainability and expansion of local factories at the international level, and the diverse channels offered to enter the products into global markets.
The increase in population, the growth in the number of visitors from all over the world, in addition to the increase in income and the multiplicity of options in coffee types, and the increase the number of cafes and retail outlets, were among the reasons behind the high consumption of coffee in Dubai. The market has become more competitive with the increase in the number of companies operating in the field of coffee and the introduction of high-quality coffee to fulfil the needs of consumers.