2020
9
UK Coffee Shops Market Report 2020
2020-12-01T03:00:38+00:00
OX990116
2195
128136
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Report
en_GB
“Consumers’ interest in coffee shop products for at-home use is driven by changes in their daily lives as many are spending more time than ever inside their homes and shopping…

UK Coffee Shops Market Report 2020

£ 2,195 (Excl.Tax)

Description

Providing the most comprehensive and up-to-date information and analysis of the Coffee Shops UK market including the behaviours, preferences and habits of the consumer.

Key points included

  • The impact of COVID-19 on the coffee shops market, with a focus on consumers’ decision-making process.
  • The impact of COVID-19 on consumers’ coffee shop visiting and purchasing habits.
  • Consumers’ satisfaction levels towards their most recent coffee shop drink purchase.
  • Consumers’ attitudes towards the four Ps (product, place, price, promotion) of coffee shops.

Products covered in this report

This Report covers branded chains and independents serving coffee beverages as core products. They are based on the European and North American coffee shop models, typified by Starbucks, Costa Coffee, Caffè Nero and Coffee Republic, offering a wide variety of coffee drinks. Other items are usually on sale, such as pastries, tea and coffee beans. Some venues may also serve breakfast and lunch as well, such as sandwiches and hot boxes.

Coffee shops include venues such as individual stores, kiosks and concessions. These may operate in a number of locations – MSAs (motorway service areas), health clubs and hospitals, for example, as well as standalone outlets. However, they must be independent of the facility they are located in.

Expert analysis from a specialist in the field

Written by Trish Caddy, a leading analyst in the Foodservice sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Consumers’ interest in coffee shop products for at-home use is driven by changes in their daily lives as many are spending more time than ever inside their homes and shopping more online, unlocking opportunities for coffee shops to bring their brands into people’s homes through e-commerce.

Trish Caddy
Senior Foodservice Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
    • COVID-19: Market context
    • Economic and other assumptions
  2. Executive Summary

    • Impact of COVID-19 on coffee shops market
      • Figure 1: Expected impact of COVID-19 on coffee shops, in short, medium and long term, 20 November 2020
    • The market
    • Coffee shops market dives in 2020
      • Figure 2: UK coffee shops market, value sales and forecast, 2015-25
    • Companies and brands
    • Developing retail ranges
    • The consumer
    • Going out for drinks is a popular activity among Britons
      • Figure 3: Coffee shops vs non-specialist venues visited, September 2020
    • More room to explore emerging formats in cities and large towns
      • Figure 4: Retail formats used for drink purchases from coffee shops, by areas, September 2020
    • Digital ordering methods appeal to younger consumers
      • Figure 5: Ordering methods used for drink purchases from coffee shops, by age groups, September 2020
    • Supporting busy parents throughout the day
      • Figure 6: Drink purchases from coffee shops by dayparts, September 2020
    • Cheaper alternatives fuelling consumer cutbacks
      • Figure 7: Future intention on frequency of drink purchases from coffee shops, by parental status, September 2020
    • Monitor prices, loyalty schemes and eco-friendly initiatives
      • Figure 8: Satisfaction levels with drink purchased most recently from a coffee shop, September 2020
      • Figure 9: Key drivers of overall satisfaction with drink purchase from a coffee shop, September 2020
    • Coffee shops pivot to cater to customers at home
      • Figure 10: Attitudes towards coffee shops, September 2020
  3. Issues and Insights

    • COVID-19’s impact on at-home coffee shop experiences
    • Coffee shops’ role in nudging people towards healthier choices
    • Coffee shops’ role in bringing people together
  4. The Market – Key Takeaways

    • Coffee shops’ recovery begins 2021
    • VAT cut could stimulate the coffee shops market
    • Relaxed takeaway regulations
    • Impact of obesity strategy on coffee shops
  5. Market Size and Forecast

    • Impact of COVID-19 on coffee shops market
      • Figure 11: Expected impact of COVID-19 on coffee shops, in short, medium and long term, 20 November 2020
    • Coffee shops market dives in 2020…
      • Figure 12: UK coffee shops market, value sales and forecast, 2015-25
    • …but recovery begins in 2021
      • Figure 13: UK coffee shops market, value sales and forecast, 2015-25
    • Market drivers and assumptions
      • Figure 14: Key drivers affecting Mintel’s market forecast, 2020-24 (prepared July 2020)
    • Lessons learnt from the last recession
      • Figure 15: UK coffee shops market size and forecast, 2008-13
    • Forecast methodology
    • COVID-19: Market context
  6. Market Drivers

    • VAT cut could stimulate the coffee shops market…
    • … but severe restrictions put the brakes on recovery
    • Relaxed takeaway regulations
    • Impact of obesity strategy on coffee shops
  7. Companies and Brands – Key Takeaways

    • Product changes to serve home-based consumers
    • Adapting places to best serve communities
    • Pricing adjustments to encourage purchases
    • Meaningful shifts shaping promotional strategies
    • McDonald’s McCafé pours £11m into ad spend
  8. Launch Activity and Innovation

    • Coffee shops reassess the four Ps of marketing
    • Product changes to serve home-based consumers
    • Bag-in-box coffee
    • Premiumisation
    • Home brewing kits
    • Ready-to-drink
      • Figure 16: Almond Based Iced Coffee (RTD), by Starbucks
    • Adapting places to best serve communities
    • Mobilising coffee shops
    • Coffee workspace
    • Pricing adjustments to encourage purchases
    • Price cuts
    • Meal deals
    • Meaningful shifts shaping promotional strategies
    • Coffee subscription
    • Careful indulgence
      • Figure 17: Nutrition information of a hot chocolate drink by Costa Coffee
    • Recycling options
  9. Advertising and Marketing Activity

    • McDonald’s pours £11m into its no-frills coffee
      • Figure 18: Advertising expenditure by selected coffee shops, 2017-20
    • Coca-Cola lets Costa shine on Piccadilly Lights
    • Starbucks wins big through diversity and inclusion
    • Caffè Nero’s biggest ever ad for new food menu
    • Proposal to ban online advertising for HFSS items
    • Nielsen Ad Intel coverage
  10. Brand Research

    • Brand map
      • Figure 19: Attitudes towards and usage of selected brands, November 2020
    • Key brand metrics
      • Figure 20: Key metrics for selected brands, November 2020
    • Brand attitudes: there’s room for Costa, Nero and Starbucks to improve value-for-money perceptions
      • Figure 21: Attitudes, by brand, November 2020
    • Brand personality: Costa Coffee and McCafé on a par as most fun
      • Figure 22: Brand personality – macro image, November 2020
    • Costa, Nero and Starbucks need to focus on improving healthy perceptions
      • Figure 23: Brand personality – micro image, November 2020
    • Brand analysis
    • Costa Coffee loses out to McCafé in terms of good value
      • Figure 24: User profile of Costa Coffee, November 2020
    • Pret a Manger losing its brand differentiation
      • Figure 25: User profile of Pret a Manger, November 2020
    • McCafé most associated with offering good value
      • Figure 26: User profile of McDonald’s McCafé, November 2020
    • Caffè Nero needs to improve its value proposition
      • Figure 27: User profile of Caffè Nero, November 2020
    • Starbucks is a legacy brand in need of new value propositions
      • Figure 28: User profile of Starbucks, November 2020
  11. The Consumer – Key Takeaways

    • Post-COVID-19: three Trend Drivers of growth
    • Wellbeing
    • Identity
    • Value
    • Promotion: using coffee shops as a way to support health
  12. Impact of COVID-19 on Consumer Behaviour

    • ‘Frugal mindset’ likely to persist
      • Figure 29: Trends in consumer sentiment for the coming year, January – October 2020
    • Promotions much needed to drive usage
      • Figure 30: Leisure activity promotions, by age groups, October 2020
    • Take out to help out
      • Figure 31: Takeaways/home delivery spending intentions over the next month, 2 November – 11 November 2020
    • COVID-19’s impact on consumer priorities
    • Supporting local
    • Health and wellness
      • Figure 32: COVID-19’s impact on consumer priorities, by age groups, 8 October – 19 October 2020
  13. Most Popular Venues Visited

    • Coffee shops: icons of urban society
      • Figure 33: Coffee shops vs non-specialist venues visited, September 2020
    • Costa fights to stay on top
      • Figure 34: Venues visited for drink purchases, by age groups, September 2020
  14. Most Popular Coffee Shop Retail Formats

    • More room to explore emerging formats in cities and large towns
      • Figure 35: Retail formats used for drink purchases from coffee shops, by areas, September 2020
  15. Most Popular Coffee Shop Ordering Methods

    • Digital ordering methods appeal to younger consumers
      • Figure 36: Ordering methods used for drink purchases from coffee shops, by age groups, September 2020
  16. Most Popular Dayparts

    • Adapting to flexible working
      • Figure 37: Drink purchases from coffee shops by dayparts, September 2020
    • Maintaining older consumers’ morning routines
    • Supporting busy parents throughout the day
  17. Future Purchase Intention

    • Improve value propositions to avoid cutbacks
    • Exciting juice drinks shake up sales
    • Value meal deals increase customer loyalty
      • Figure 38: Future intention on frequency of drink purchases from coffee shops, by parental status, September 2020
    • Parents of under-18s planned to visit more often
  18. Key Drivers of Satisfaction

    • Consumers satisfied with COVID-19 communications
      • Figure 39: Key drivers of satisfaction with drink purchase from a coffee shop, September 2020
    • Promote quality, cleanliness and customer service – key driver analysis
      • Figure 40: Key drivers of overall satisfaction with drink purchase from a coffee shop, September 2020
    • Monitor prices, loyalty schemes and eco-friendly initiatives – key driver analysis
      • Figure 41: Overall satisfaction with Coffee Shops – key driver output, September 2020
    • Start a narrative around portion sizes and healthy options – key driver analysis
  19. Attitudes towards Coffee Shops

    • Product: coffee shops pivot to cater to customers at home
      • Figure 42: Attitudes towards coffee shops, September 2020
    • Promotion: leveraging positive customer satisfaction
    • Under-25s’ positive perception of coffee shops’ RTD
    • Using coffee shops as a way to support health
      • Figure 43: Example of fortified coffee, by Soylent
    • Consumers want more than just a low price
    • Place: a coffee shop should be the heart of a community
    • Adapting the coffee shop for remote working
    • Mobilising the coffee shop to reach customers
      • Figure 44: Coffee shops – CHAID – Tree output, September 2020
  20. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
    • Key driver analysis methodology
    • Interpretation of results
      • Figure 45: Overall satisfaction with coffee shops – key driver output, September 2020
      • Figure 46: Satisfaction with coffee shops, September 2020
    • CHAID analysis methodology
      • Figure 47: Coffee shops – CHAID – Table output, September 2020

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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