Feasibility Study for a Specialty Coffee Production Plant in Jeddah
Feasibility Study for a Specialty Coffee Production Plant in Jeddah
Feasibility Study for a Specialty Coffee Production Plant in Jeddah: The project aims to establish a factory specialized in the production of coffee and beverages (specialty coffee) in Jeddah. The factory will handle roasting, grinding, packaging, and distribution to individual and commercial sectors (cafes, restaurants, retail stores, hotels).
The project focuses on importing high-quality green coffee beans from internationally certified farms, protecting them using advanced technologies that highlight their natural flavors, while offering a range of exclusive blends tailored to Saudi and Gulf tastes.
The project aligns with the growing coffee and beverage culture in Saudi Arabia, with a general focus on high-quality, authentic, and reliable products.
Study Content
Product Services
Product Services
Single Origin – Whole Bean Roast Coffee Blend
Ground coffee with varying coffee percentages, espresso, and cold brew
Coffee capsules compatible with popular systems such as Nespresso.
Cold Brew Bottles and Cold Pack Coffee
Custom roasting services for brands and cafes. Private Labeling and Unlimited packaging services.
Coffee tasting and preparation training courses as a service to partners. Online sales via the factory’s own online store
Demand and Market Analysis
Demand and Market Analysis
The specialty coffee market in Saudi Arabia has grown by over 18% annually, particularly in major cities such as Jeddah, Riyadh, and Dammam.
There are more than 4,000 coffee shops in Jeddah, many of which prefer to work with local roasters to reduce costs and ensure stable supply.
Saudi consumers’ tastes are shifting toward high-quality products and unique flavors.
Significant government support for the coffee sector, as part of initiatives to support national products and small and medium-sized enterprises.
Demand for capsules and packaged cold coffee is rising as a convenience for consumers at home and at work.
Major retailers are looking to incorporate local Saudi brands into their stores as part of initiatives to support local manufacturing.
Investment Benefits
Investment Benefits
A rapidly growing sector in Saudi Arabia is increasingly turning to the younger generation for coffee and beverages.
Extensive export opportunities to Gulf countries near China, along with the growing coffee culture.
Possibility of signing permanent supply contracts with cafes, hotels, and stores.
Support from government agencies such as the Small and Medium Enterprises Authority and “Made in Saudi Arabia.” Flexibility to expand into additional production lines (preparation equipment, tools, barista tools).
High profit margins on coffee and beverage products, reaching 30-40% compared to commercial coffee.
Project Features
Project Features
Its location in Jeddah allows for easy import via the seaport and its proximity to major shopping centers.
The factory relies on precise, automated production lines that allow for precise control of flavor and quality.
A true Saudi brand identity and brand loyalty in the local market.
The possibility of offering exclusive products to cafes based on customized offers and blends.
The presence of cold storage facilities for storing green coffee to ensure consistent quality throughout the year.
Focus on sustainability (recyclable packaging, reducing waste), attracting environmentally conscious customers.
Financial Indicators
Financial Indicators
The expected capital to establish the factory ranges between 18 and 25 million Saudi Riyals, including land/rent, roasting, filling, cooling, packaging, operation, and staffing.
The expected return on investment (ROI) ranges between 15 and 18% annually after full operation.
The capital payback period is estimated at 3 to 4 years, based on stable sales forecasts and a gradual expansion of the customer base.
Annual revenues for the first three years are expected to range between 12 and 18 million Saudi Riyals, with a net profit margin of 25% to 30%.
With the signing of large supply contracts, annual revenues could exceed 20 million Saudi Riyals by the fifth year.
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