UK coffee shop market ‘showed sales growth of 10%’ last year

From:FoodBev

The UK coffee shop market has “shown significant sales growth of 10%” during the last year, according to the latest report from Allegra World Coffee Portal.

The branded coffee chain segment recorded turnover of £3.3bn, following impressive outlet growth of 12% and delivering sales growth of 15%. Revenues across the overall coffee shop market in the UK rose to £7.9bn in 2015.

After 17 years of considerable growth, the coffee shop sector continues to be one of the most successful in the UK economy, with Costa, Starbucks and Caffé Nero operating almost 3,500 outlets between them and controlling more than half of the branded chain market. Coffee quality is now expected and is being constantly improved across the sector due to the influence from both artisan chains and independents, Allegra added.

Costa has also been voted the UK’s favourite coffee shop chain for the sixth year in a row by Allegra’s independent panel of consumers. “We are incredibly proud to have been named the nation’s favourite coffee shop for the sixth consecutive year, and would like to say thank you to all of our loyal customers who voted for us,” said Costa Coffee managing director Chris Rogers.

Increasing competition provides consumers with better choice of quality coffee at home, at work and from non-specialists, with consumer choice now based on far more criteria than ever before, Allegra continued.

Allegra Group managing director Jeffrey Young said: “The strong market growth of the past 12 months has exceeded our own estimates. This provides further evidence of the growing importance of coffee shops to the British economy and more importantly their impact on the daily lives of everyday consumers. With a market now valued at £7.9bn, no-one can ignore the fact that coffee is big business.”

As part of its report, Allegra has also identified a number of trends within the UK coffee shop sector. The gradual decline of instant coffee consumption at home and the subsequent premiumisation of the at-home segment further increase the availability of speciality coffee and intensify the competition, with the country’s artisan independent segment becoming increasingly regionalised.

Consumers are becoming increasingly knowledgeable about coffee and brewing at home is on the rise, with 7% of consumers now having a range of third wave equipment – up 5% on last year.

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