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Wed 12th Apr 2017 - UK coffee shop market expected to grow 29% in next five years to £4.3bn
UK coffee shop market expected to grow 29% in next five years to £4.3bn: The UK coffee market is expected to grow 29% over the next five years with sales forecast to reach £4.3bn, according to new research. The findings by Mintel also showed the market has grown 37% in the past five years – from £2.4bn in 2011 to £3.4bn in 2016. Between 2015 and 2016 sales increased 10.4% – the biggest year-on-year boost witnessed in the past five years. The research showed two-thirds (65%) of all Brits have visited a coffee shop in the past three months. Coffee shop usage peaks among consumers aged 16 to 24 (73%). However, in a space traditionally dominated by specialist coffee retailers, it is notable as many as 44% of Brits buy their hot drinks from non-specialists. Overall, just one-fifth (19%) of the nation does not drink tea, coffee or other hot drinks out of the home. Meanwhile, half (51%) of coffee drinkers prefer to drink hot drinks at home rather than out-of-home, including 55% of men and 47% of women. The research also revealed almost nine in ten (87%) coffee drinkers try to dispose of their packaging waste in recycling bins. Six in ten (58%) would like coffee shops to offer a discount to customers using their own travel mugs. Furthermore, four in ten (40%) said they do not mind being charged extra for hot drinks served in 100% recyclable coffee cups, and 30% would prefer to pay for filtered water instead of buying bottled water. Mintel foodservice analyst Trish Caddy said: “Britain’s appetite for coffee shops continues. Much of the growth we’ve seen in recent years is driven by habitual coffee drinkers and the continually increasing number of coffee retailers that have become ubiquitous on British high streets. A raft of non-specialist venues that feature barista-style coffee on their menus with takeaway functions are grabbing a slice of the coffee shop market. In the future, the top end of the market will continue to face intense competition from big pub chains, fast food chains and bakery shops that have now encroached on the coffee shop market, competing in terms of price, convenience and even geographical reach. The concerted efforts of coffee shops to cut down on coffee cup waste, following the recent documentary Hugh’s War on Waste, puts them at a competitive advantage by highlighting the fact the sector as a whole feels obliged to be more ethical. The fact half of coffee drinkers prefer to drink hot drinks at home could suggest the range of beverages for at-home consumption may, in fact, be so well established in the retail channel more consumers can now recreate the coffee shop experience without having to leave the comforts of home.”

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