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UK coffee market dominated by Costa Coffee

Press Release   •   Feb 05, 2013 10:56 GMT

After more than a decade of rapid growth, the UK coffee market is defying all previous expectations as coffee wins the hearts and wallets of many British consumers.

The UK coffee market continues to astound even the most optimistic of forecasters by growing significantly in value, in outlet numbers and also in the social psyche of the nation. Britain has become a new nation of coffee drinkers.

There appears to be no end to the trend to café culture which began more than a decade ago, with coffee achieving a current growth rate 7 to 8 times that of the British economy.

Throughout 2012 the total UK coffee market grew by 7.5%, to reach £5.8 billion in turnover. The market which includes branded coffee chains, independent coffee shops and non-specialist operators, grew to 15,723 outlets. The total number of coffee shop outlets grew by 4% over the past year alone.

The UK branded coffee chain segment now stands at 5,225 outlets. Sales were very robust in 2012, growing by 10% to an estimated turnover of £2.3 billion. The market has doubled in the past six years and is now 10 times the size it was 15 years ago, at a time many thought it was already saturated.

The three leading chains in the UK are Costa Coffee (1,552 outlets), Starbucks Coffee Company (757) and Caffè Nero (530). These three now command a 54% combined share of the branded coffee chain market.

More than 25,000 consumers show British coffee shop visitors refuse to give up on their regular coffee out of home, with 49% stating they are maintaining their coffee shop visits compared with last year. 1 in 5 consumers surveyed now visit coffee shops daily compared with 1 in 9 in 2009.

The role of the coffee shop has never been more important in supporting the vitality of UK shopping areas, attracting consumers and contributing to economic uplift of surrounding businesses.

Through to 2017, the total UK coffee market will exceed 20,000 outlets and £8 billion in turnover, driven by branded coffee chain expansion and non-specialist operator growth.

For more information on the UK coffee market, see the latest research: UK Coffee Market

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