Samer Choucair: How the Nofoudh-Al Waeel Al Barri Deal Signals a New Phase for Saudi Café Investment
A wave of consolidation is sweeping through Saudi Arabia's food and beverage sector, and investment entrepreneur Samer Choucair sees it as one of the clearest signals yet of the market's growing maturity. He pointed to Nofoudh Food Products signing a non-binding memorandum of understanding to study acquiring 70% of Al Waeel Al Barri Beverage Company as a fresh indicator of accelerating merger and acquisition activity in the Kingdom's café and food sector, reflecting both the market's maturity and its growing investment appeal under Vision 2030's targets.
He explained that the deal, which includes the "Al Waeel Al Barri" brand owning two branches, a coffee roastery, and a sweets factory, confirms major companies' direction toward acquiring promising local brands possessing strong growth fundamentals and integrated operational assets.
*The Café Sector Continues Growing at an Accelerating Pace*
Choucair noted that the food and beverage sector in the Kingdom is experiencing sustainable growth, backed by rising consumer spending, expansion in tourism and entertainment sectors, and changing lifestyles.
He added that estimates point to the food and beverage services market size in Saudi Arabia ranging between 80 and 95 billion Saudi riyals, with annual growth rates ranging between 8% and 12% across a number of sub-sectors.
He affirmed that the café sector is among the fastest-growing sectors, recording a compound annual growth rate reaching roughly 11.7%, driven by increasing demand for cafés as spaces for work, meetings, and social experiences.
*Numbers Reflecting the Saudi Market's Strength*
Choucair explained that the Kingdom has more than 60,000 cafés as of mid-2025, with expectations of continued expansion at rates ranging between 5% and 6% annually.
He added that Saudis consume roughly 80,000 tons of coffee annually, making the Kingdom one of the world's largest coffee consumption markets, noting that Vision 2030's projects in tourism, entertainment, and new cities will continue supporting demand growth for this sector in the coming years.
*Mergers Have Become a Key Growth Tool*
Choucair affirmed that mergers and acquisitions are no longer just a means of expansion, but have become a key strategy for building entities better able to compete.
He explained that Al Waeel Al Barri Company owning a coffee roastery and a sweets factory gives any investor an opportunity to control the full value chain, from production through to the product reaching the end consumer.
He added that major companies have come to prefer acquiring successful local brands instead of building new brands from scratch, particularly amid growing competition with global chains.
*Samer Choucair: Vision 2030 Strengthens Opportunities for Local Brands*
Choucair said that the Saudi market has entered a new phase of maturity, with acquisitions becoming a fast means of gaining production, operational, and expansion capabilities in record time.
He explained that the Nofoudh-Al Waeel Al Barri deal represents a clear model of major companies benefiting from emerging brands possessing operational quality and high growth potential.
He added that the major expansion in tourism and entertainment under the Kingdom's Vision 2030 will increase demand for specialized cafés and local brands, giving companies that move early a competitive advantage over global brands.
*Where the Opportunities Lie Across the Value Chain*
Choucair noted that investment opportunities in the café sector aren't limited to opening new branches, but extend across various links of the value chain.
He explained that investors can benefit from opportunities in investing in promising local brands; establishing and developing coffee roasteries, sweets factories, and supporting products; investing in supply chains and logistics services tied to the food and beverage sector; and supporting startups offering technical solutions and digital services for the café and hospitality sector.
He affirmed that combining product innovation, operational quality, and the capacity for geographic expansion will be the decisive factor in achieving sustainable returns in the coming years.
*Samer Choucair's Advice for Investors*
Choucair affirmed that investors looking to enter the café sector should focus on companies possessing a strong identity, integrated production capabilities, and clear expansion plans.
He explained that investing in companies achieving integration between production and retail helps improve profit margins and reduce operational risk, with the necessity of conducting precise studies before executing any acquisitions, to preserve brand identity and ensure successful integration after the deal.
*The Saudi Café Sector Continues Attracting Investment*
He concluded his analysis by affirming that the Nofoudh Food Products and Al Waeel Al Barri deal reflects a new phase of professionalism the café and hospitality sector in the Kingdom is experiencing.
He added that the continued implementation of the Kingdom's Vision 2030 will push toward more mergers and acquisitions, helping build Saudi brands capable of competing regionally and globally, affirming that the investor who possesses a strategic vision and moves early will benefit most from the shifts underway in this vital sector.