For the latest Cafés and Coffee Shops market research from Mintel, take a look at our UK Coffee and Tea in Foodservice Market Report 2025.
UK Cafés and Coffee Shops Market Report 2024
Key Topics Analysed in the Report
- How the UK café and coffee shops market is performing and projected changes in value over the next five years
- Trends in coffee shop visiting and purchasing habits, including the rising threat posed by food-focused venues
- Type of drinks purchased from coffee shops and coffee drink preferences, including the rising appeal of decaffeinated options
- Behaviours and preferences of coffee shop customers, including their participation in loyalty programmes and interest in international drink options
| Report Attributes | Details |
|---|---|
| Published Date | December 2024 |
| Data Range | 2019-2029 |
| Measurement Metrics | Revenue in £ |
| Country Focus | United Kingdom (UK) |
| Consumer Data | 1,111 internet users aged 16+, September 2024 |
| Number of Pages | 84 |
| Market Segmentation | Coffee, Tea, Hot Chocolate, Plant-Based Options, Decaffeinated Coffee, International Drinks (e.g., Vietnamese Coffee, Taiwanese Bubble Tea), Specialty Teas, Energy Drinks, and Sweet and Savory Food Items. |
| Leading Companies | Costa Coffee, Starbucks, Greggs, Caffè Nero, Pret A Manger, Loungers, Coffee#1, Black Sheep Coffee, Muffin Break, Tim Hortons, Gail’s Bakery, Wenzels Bakery, Aramark, Ole & Steen, and Cornish Bakery |
Meet the Expert Behind the Analysis
This report was written by Yogita Burke. Yogita recently joined Mintel as a Cross-category Research Analyst. Prior to that, she worked within the retail industry for more than 20 years in the Merchandising function, where she managed financial budgets, traded the department to hit sales and profit targets, created department strategies alongside the buyers and created numerous reports.
Coffee shop consumers want unique food and drink options. By broadening menu options, operators will captivate audiences and gain a competitive edge over non-specialist venues.
Yogita Burke
Cross-category Research Analyst
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EXECUTIVE SUMMARY
- Opportunities for the cafés and coffee shops market
- Opportunity to expand menu options
- Offer unique food and drink options
- Explore natural ingredients to boost appetite for energy drinks
- Capitalise on the revival of tea
- Market dynamics and outlook
- The market is experiencing healthy growth rates
- Market predictions
- Industry set to maintain healthy rate of growth
- Costa Coffee retains top position
- Graph 1: number of outlets held by leading cafés and coffee shops, 2022-24
- Further cost pressures on cafés and coffee shops
- What consumers want and why
- Fast food chains and bakery/sandwich shops gain traction in 2024
- Graph 2: venues visited for drink purchases, 2021-24
- In-store coffee shop purchases remain popular
- Graph 3: usage of coffee shop retail formats for drink purchases, 2021-24
- Tea is trending among the over-25s
- Graph 4: purchase of tea from coffee shops, by age group, 2021-24
- Rise in decaffeinated coffee consumption in 2024
- Graph 5: caffeine preference in coffee drink purchase, 2021-24
- Consumer spend in the cafés and coffee shops market
- Coffee shop loyalty schemes are popular
- Graph 6: coffee shop behaviours, 2024
- Innovation and marketing
- Retailers ramp up offerings, coffee shops expand reach
- ATL ad spend in 2023 returned to normal level
- Graph 7: total ATL, online display and direct mail advertising expenditure on selected OOH coffee brands, 2024
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MARKET DYNAMICS
- Market size
- Cafés and coffee shops continue to boost revenue
- Graph 8: value of cafés and coffee shops, 2019-24
- Three main drivers of growth
- Market forecast
- Industry set to maintain healthy rate of growth
- Continued product innovation will retain and attract new customers
- Market share
- Store growth among most leading brands
- Greggs accelerates store count in 2024
- Graph 9: number of outlets held by leading cafés and coffee shops, 2022-24
- Costa Coffee leads the customer share of the out-of-home coffee and bakery category…
- Graph 10: share of SpendMapper cohort for leading brands in the OOH coffee and bakery category, 2023-24
- …and share of total spend in the last 12 months
- Graph 11: share of SpendMapper cohort expenditure for leading brands in the OOH coffee and bakery category, 2023-24
- Starbucks expands UK market presence
- The Nero Group broadens its brand portfolio
- Competitive pressures from bakeries
- Small coffee shop brands aim for expansion
- Established brands in the coffee and bakery category enjoy repeat purchases
- Graph 12: average number of transactions made in the last 12 months, by SpendMapper cohort of select brands in the OOH coffee and bakery category, 2023-24
- Market drivers
- Falling inflation has reduced pressure on household finances
- Graph 13: CPI inflation rate, 2021-24
- Consumers continue to face price rises
- Rise in National Insurance rate for employers
- Starbucks scales back hedging programme
- Consumer concerns over the cost-of-living crisis persist
- Graph 14: perception of the state of the cost-of-living crisis in the UK, 2024
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WHAT CONSUMERS WANT AND WHY
- Drink purchase venues
- Out-of-home drink purchases remain popular
- Graph 15: venues visited for drink purchases, 2023-24
- Fast food chains and bakery/sandwich shops gain traction in 2024
- Graph 16: venues visited for drink purchases, 2021-24
- Coffee shops face competition from non-specialist venues
- Usage of coffee shop retail formats
- In-store coffee shop purchases remain popular
- Graph 17: usage of coffee shop retail formats for drink purchases, 2021-24
- Drive-throughs, home delivery and mobile kiosks maintain steady usage
- Coffee shop drink purchase ordering methods
- In-person ordering in coffee shops continues to fall
- Graph 18: coffee shop drink purchase, by ordering method, 2021-24
- Over one in four buyers order online from coffee shops
- Type of drinks purchased from coffee shops
- The revival of tea…
- Graph 19: coffee shop drink purchase, by type, 2021-24
- …especially among the over-25s
- Graph 20: purchase of tea from coffee shops, by age group, 2021-24
- Opportunity for coffee shop chains to capitalise on kids’ hot chocolate
- Graph 21: purchase of hot chocolate from coffee shops, by presence of children in the household, 2024
- Coffee drink preferences
- Rise in decaffeinated coffee consumption in 2024
- Graph 22: caffeine preference in coffee drink purchase, 2021-24
- Preference for dairy-milk-based coffee remains stable
- Graph 23: milk preference in coffee drink purchase, 2021-24
- Increase in appetite for sweet coffees in 2024
- Graph 24: syrup preference in coffee drink purchase, 2021-24
- Majority prefer hot coffee drinks
- Graph 25: temperature preference in coffee drink purchase, 2021-24
- Young coffee drinkers enjoy cold coffees
- Spend in cafés and coffee shops
- Two in five consumers spend between £3-£4 on coffee shop drink orders for themselves
- 43% spend on average £5-£7 in the OOH coffee and bakery category
- Graph 26: average spend of SpendMapper cohort in the OOH coffee and bakery category, 2023-24
- £7.20 the average spend per transaction in the OOH coffee and bakery category…
- Graph 27: average spend for SpendMapper cohort on selected brands in the OOH coffee and bakery category, 2024
- …but there is an opportunity to increase this
- Spend and customer numbers fall in January
- Graph 28: total spend of SpendMapper cohort in the OOH coffee and bakery category, by month, 2022-24
- Graph 29: total customer numbers of SpendMapper cohort in the OOH coffee and bakery category, by month, 2022-24
- Key actions to encourage spend and customer numbers in January
- Fitness brands that coffee shop customers have affinities with
- Coffee shop behaviours
- Coffee shop loyalty schemes are popular…
- Graph 30: coffee shop behaviours, 2024
- …and drive higher spend
- Graph 31: spend on drinks orders at coffee shops by agreement with “I take advantage of loyalty programs offered by coffee shops to earn rewards and discounts”, 2024
- Young show strong interest in different food and drink menu options
- Half of coffee shop consumers want unique food and drink options
- OOH food brands that Costa Coffee and Starbucks customers are more likely to use than the average adult
- Wide appeal among the young for unique food and drink options at coffee shops
- Graph 32: enjoy visiting coffee shops that collaborate with other brands to offer unique food and drink options, by age group, 2024
- Pair international drink options with corresponding food
- Tap into health for unique food and drink options for over-55s
- Consumers are divided about environmental impact of coffee consumption
- Graph 33: concern about the environmental impact of my coffee consumption, by age group, 2024
- Young show interest in energy drink options at coffee shops
- Graph 34: interest in seeing more energy drink options at coffee shops, by age group, 2024
- Natural ingredient-based energy drinks support appetite among young for energy drinks in coffee shops
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INNOVATION AND MARKETING TRENDS
- Launch activity and innovation
- External competition in the out-of-home coffee sector
- Premium brands debut on-the-go service
- Coffee in new locations
- Expanding brand reach
- Costa Coffee debuts 24-hour coffee solution
- Convenient/queue-busting food and hot beverages
- Loyalty schemes and subscriptions
- Bottled barista-quality liquid coffee
- New drinks on the menu…
- …including drinks that contain natural ingredients
- Sustainability
- Advertising and marketing activity
- ATL ad spend in 2023 returned to normal level
- Graph 35: total ATL, online display and direct mail advertising expenditure on selected OOH coffee brands, 2020-24
- Outdoor ad spend dominates
- Graph 36: total ATL, online display and direct mail advertising expenditure on selected OOH coffee brands, by media type, 2024
- Costa Coffee retains its position as the biggest ATL spender
- Graph 37: total ATL, online display and direct mail advertising expenditure on selected OOH coffee brands, 2024
- Starbucks focuses on mental wellbeing
- Boston Tea Party challenges key players on single-use cups
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APPENDIX
- Supplementary data
- UK population trends by age structure
- Graph 38: trends in the age structure of the UK population, 2018-28
- Market forecast data and methodology
- Market forecast and prediction intervals (value)
- Forecast methodology
- Report scope and definitions
- Market definition
- Abbreviations and terms
- Consumer research methodology
- Nielsen Ad Intel coverage
- Snoop SpendMapper methodology
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