From mall kiosks in Riyadh to specialty cafes in Dubai, the presence of iced coffee has become unmistakable across the GCC. What was once a seasonal novelty has evolved into a year-round preference, especially among younger consumers. But behind the rise of iced coffee lies a broader generational shift, shaped by evolving lifestyles, global exposure, and region-specific cultural dynamics.

At Sapience, our work in market research in the UAE and across the GCC places us close to these behavioral transformations. Through quantitative research, qualitative research, and ongoing consumer insights programs, we track how global trends meet regional preferences and what that means for businesses operating in or entering the market.

Global Influence, Local Expression

Across global markets, iced coffee is gaining traction, primarily driven by Millennials and Gen Z. In the US, iced beverages now account for over 75% of certain chains’ coffee sales. Younger consumers favor these drinks for their versatility, flavor customization, and suitability for on-the-go consumption.

These preferences are not confined to North America or Europe. In the GCC, recent consumption data reflects the same momentum. The UAE alone recorded over 4.6 billion cups of coffee consumed in 2023, with iced coffee accounting for approximately 27% of total out-of-home coffee orders, a figure that has more than doubled in five years. In Saudi Arabia, where the coffee sector is projected to reach SAR 6.35 billion by 2028, cold beverages are among the fastest-growing categories in premium cafes. Kuwait, known for its dense cafe culture, has also seen a surge in cold coffee menu diversification, especially among independent brands targeting younger demographics.

These shifts reflect profound behavioral changes. While Gen X and Boomers remain loyal to hot brews, Millennials and Gen Z approach coffee as an experience rather than a habit. They are more open to experimenting with new formats, from nitro cold brews to ready-to-drink bottled coffee. Many begin their coffee journeys with flavored iced concoctions, unlike older generations who grew up with traditional hot cups.

Ultimately, this evolution signals a broader cultural transformation. Younger generations are treating coffee less as a daily necessity and more as a personal and lifestyle choice. They value presentation, flavor innovation, and convenience. In parallel, they are driving the growth of social café culture, where what you drink is closely tied to how you socialize and how you share your life online.

Cultural Dynamics in the GCC

In the GCC, these generational trends intersect with long-standing coffee traditions. Arabic coffee (qahwa), served hot and unsweetened, remains a significant symbol of hospitality across the region. But its ritualistic, communal format contrasts sharply with the solo, fast-paced consumption styles preferred by many younger consumers today.

This does not represent a rejection of tradition but rather a diversification. In cities like Dubai, Riyadh, and Kuwait City, it is increasingly common to find both heritage and trend coexisting: an older guest sipping traditional gahwa, while younger patrons opt for iced lattes with oat milk and caramel syrup.

Climate also plays a role. With much of the region experiencing high temperatures year-round, cold beverages are a natural appeal. But obviously, the rise of iced coffee is not just about the weather. It aligns with broader lifestyle patterns: urbanization, longer working hours, tech-enabled delivery platforms, and a growing appetite for premiumization in everyday consumption.

The Role of Coffee Spaces

The growth of iced coffee in the GCC is as much about place as it is about product. Cafes have become crucial social venues, particularly among Gen Z and Millennials. Unlike older generations, who may primarily consume coffee at home or in offices, younger consumers are more likely to treat cafes as third spaces for work, socializing, and content creation.

This shift is visible in café formats across the region. Brands are designing visually striking interiors and expanding iced coffee menus that appeal to Instagram-driven discovery. Among younger consumers, there is a noticeable trend of describing coffee shops as “mood setters” spaces where ambiance and aesthetics matter as much as the drink itself. This perception is often shared across informal consumer narratives and observed behaviors in urban hubs like Dubai and Riyadh.

The opportunity for retailers and café operators lies in recognizing that for many young customers, iced coffee is a cultural signifier of modern identity reflecting values around individuality, global connectivity, lifestyle curation, and self-expression. Beyond being a beverage, iced coffee is a way to signal taste, routine, and belonging in a digitally visible world.

It also fills a social gap. Globally, Gen Z is consuming less alcohol than previous generations, and in the GCC, this shift is reinforced by cultural and religious norms that restrict alcohol use. For many young consumers, iced coffee serves as a socially acceptable, customizable, and sharable alternative anchoring social interactions without the complications or exclusions that come with alcohol consumption. In this context, the café becomes more than a space to drink coffee; it becomes a hub for identity, community, and social ritual.

Segmented Preferences, Untapped Insights

Despite its growing popularity, iced coffee consumption is far from homogeneous. Preferences vary significantly across nationalities, income groups, and even gender. Kuwaiti youth may lean toward sweet, flavored drinks; Saudi consumers may prize novelty and brand cachet; while in the UAE, the influence of health-conscious, international consumers has pushed demand for dairy alternatives and low-sugar options.

This is where robust market research becomes critical. Quantitative surveys can help map out the size of different iced coffee segments, for example, how many Emirati consumers aged 18–24 purchase iced coffee weekly. But qualitative tools such as focus groups or in-depth interviews are equally important. They can reveal why certain drinks resonate, what social contexts drive consumption, and what trade-offs consumers are making between health, taste, and convenience.

Based on our experience conducting consumer research in the region, we have found that generational preferences are rarely fixed. Many older consumers are also beginning to experiment with iced coffees, especially when offered familiar flavor cues like cardamom or date syrup. Conversely, not all young consumers abandon hot coffee; many use both formats depending on the time of day or occasion.

Business Implications: A Market in Motion

For coffee brands, retailers, and foodservice operators in the GCC, the iced coffee category presents a real commercial opportunity. But it requires a nuanced, evidence-led approach. Businesses will need to:

• Localise product development: Innovation is welcome, but it must reflect regional taste profiles and ingredient expectations.
• Invest in design and delivery: Café aesthetics, mobile ordering, and packaging all matter, especially for the under-30 demographic.
• Understand value perceptions: For younger consumers, price sensitivity may coexist with a willingness to pay for quality or uniqueness.
• Segment thoughtfully: A one-size-fits-all iced coffee menu is unlikely to succeed. Generational and cultural segmentation is key.

Understanding these dynamics requires more than trendspotting. It calls for continuous fieldwork and behavioral tracking. Whether through surveys, focus groups, or in-market testing, the insights generated can help shape strategy, refine offerings, and strengthen brand relevance.

To learn how our team at Sapience supports clients across the GCC with tailored research programs, ranging from consumer segmentation to brand health tracking, please contact us and explore our broader capabilities as one of the leading market research companies in Dubai.