Kuwait registered an average coffeeshop store opening growth rate of 21% since 2003. The number of coffeeshop openings were growing at a normal rate over the years except for 2016 and 2017 where the number of store openings more than doubled to reach 48 coffeeshops in 2016 and 81 coffeeshop openings in 2017. The high coffeeshop opening growth rate registered is contributed to the local specialty coffee brands and outlets opening all over the country.
The rapid outlet growth which was sparked in 2015 had little impact on the market value size growth up until 2017. The market size registered a 60% value growth in 2016 and 76% in 2017 but it is expected to slow down to register a negative growth of 13% by the end of 2018. The drastic increase of stores, brands, and geographical presence around the country drove the market value to achieve the high growth rates. Two main factors contributed to slower growth of the value market size; international brands dominance and maturity in coffee distribution channels and formats.
International Brands Dominance
Even though the number of openings of local coffeeshops overtook the international brands, the international brands were consistent in expanding their presence in new geographical territories that lack any coffee supply. Additionally, the increase of the drive through outlets is playing a major role in capturing consumer interest and maintaining their market shares. Last but not least, international brands operate at extended hours compared to the local brands. The majority of international brands start operating at 6:30 am compared to 7:30 am. Coffee Distribution Channels and Formats
Coffee was mainly served as a hot drink in coffeeshops and cafes up until the launch of the RTD coffee drinks. The RTD coffee drinks were not presented in the mass distribution channels in Kuwait until 2016 and 2017 where the brands, flavors, and shelf presence captured a bigger space compared to the previous years. Additionally, the local coffeeshop brands followed that trends by launching their own branded coffee capsules. This move also forced several international brands to launch their own coffee capsules.
Coffee is here to stay, and it is staying in our blood streams more than other beverages. The discussed trend has been registered worldwide. The availability of coffee beans and coffee making know how, the low setup cost, and the long shelf life of coffee compared to other restaurant and café formats are contributing to the fast growth of the category. The coffeeshop and RTD coffee market are evolving quick with existing major players such as Starbucks and new players such as Coca Cola will contribute to interest coffee trends in the near future.
From his unique position as head of Global Markets, Kuwait’s business intelligence and market research firm, Ali Boshehry explains and assesses the trends and trials facing Kuwait’s burger businesses.
Kuwait’s food and beverage industry is a dominant force in a region where dining, catering and entertaining is a huge part of the culture. For many generations, life in Kuwait – like much of the Arab world – has traditionally been centered around hospitality, the food and refreshments we consume with our peers and our family. Continue reading “BURGER BONANZA!”
قائمة الوجبات السريعة لدى الكويتيين كانت تضم الفلافل والشاورما والفطائرحتى عام 1994 حين انضم الهمبرجر لهذه القائمة. افتتح ماكدونالدز أول فرع له في الكويت عام 1994 وتلاه جوني روكتس في عام 1995 وأخيرا برجر كنج في عام 1997. تقسيم المطاعم المقدمة لوجبات الهمبرجر لم يتطور منذ دخول المنافسين من مطاعم الوجبات السريعة أو من مطاعم الخدمات الكاملة لمدة 15 سنة. Continue reading “تطور صناعة الهمبرجر في الكويت”
Hamburger was first introduced to the public in Kuwait when Kuwait Food Company (Americana) launched a branch of the famous American fast food restaurant, Hardee’s, in the country in 1981. Wendy’s followed after but shut its operation soon after. 13 years later McDonald’s was launched in Kuwait in 1994 with its first branch on Gulf Road. Continue reading “The evolution of the hamburger business in Kuwait”
M.H. Alshaya Company, Alshaya, launched its home delivery service for some of its casual and fast casual food service brands on the mid of of February. The launch was expected since Alshaya has a long track record of strongly controlling its brand portfolio. The website, http://www.alshayadelivery.com, currently offers two services, pickup and delivery. Seven restaurants are offering their home delivery services via the website and it is expected to Continue reading “Alshaya is now delivering popcorn to Wafra”
Global Markets is glad to announce infographics design as a new addition to our prime services. Infographics are intensive data and information sets offered to readers in an attractive presentation. Our first infographic is about branded hotels in the Kingdom of Saudi Arabia. The information focuses on the distribution and the availability of international brands and operators in the Kingdom. Continue reading “Infographic: Branded Hotels in Saudi Arabia 2012”
The current cereal supply market is dominated by Kellogg’s and Nestle providing a wide range of product flavors and portions while dominating the biggest shelf share in retail and wholesale outlets. There are other smaller players such as Weetabix, Country Farm, General Mills, and Heaven Birds but they lack the shelf presence and variety in many outlets. The analysis divided competing supply in the market based on product composition which constitutes of cereal with chocolate filling and/or filling. Direct competition to the proposed product has been introduced recently into the market by Kellogg’s with its Trésor brand which comes in two different flavors; milk chocolate and chocolate hazelnut. Indirect competition has been also considered in the analysis by covering chocolate cereal of all other shapes such rice toasted chocolate cereal, shells chocolate cereal, and coco pops. Continue reading “Chocolate Cereal Products in Kuwait”