2021
9
UK Coffee Shops Market Report 2021
2021-12-08T03:07:46+00:00
OX1050527
2195
146112
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Report
en_GB
“Food-led venues have a competitive advantage as they are offering crowd-pleasing food choices while undercutting specialist coffee shops on the price of drinks. This can be managed if specialised coffee…

UK Coffee Shops Market Report 2021

£ 2,195 (Excl.Tax)

Description

The Coffee Shops Market Report identifies consumers’ attitudes towards visiting coffee shops, purchasing habits and the impact of COVID-19 on the UK coffee shop market. This report covers the UK coffee shop market size, market forecast, market segmentation and industry trends in the UK coffee market.

Current Landscape of the UK Coffee Shop Market

Despite the changes to many young consumers’ lifestyles and working patterns due to the pandemic, their desire to continue using coffee shops is prominent. This has also been helped by the UK coffee shop market’s efforts to reach a more dispersed consumer base with new distribution channels in new locations –such as drive-through- to meet the demand for coffee shop-style drinks.

 

UK Coffee Shops Market Share and Coffee Shop Statistics UK

Almost half of Britons agree that food outlets and restaurants’ coffee drinks are just as good as those sold in coffee shops. Food-led venues selling coffee shop-style drinks have a competitive advantage, offering crowd-pleasing food choices while undercutting specialist coffee shops on the price of drinks.

  • Coffee Shop Market Size UK: Coffee shops’ sales are set to reach £4.5 billion by 2026.
  • Coffee Shop Market Share UK: Costa Coffee are the leading brand in the UK coffee shop market, with 98% of consumers aware of the brand.
  • Coffee Shop Target Market UK: 70% of 16-34 year olds bought drinks from a coffee shop in the past 12 months.
  • 33% of consumers are most likely to visit a coffee shop that allows them to customise their order.

Future Market Trends in UK Coffee Shop Market 

Mintel’s coffee shop market research indicates that coffee shops that offer more options to customise drinks can overcome the threat of greater competition from foodservice, since they can give their customers precisely what they want as opposed to the standardised drinks served at food-led venues.

The UK coffee shop market can also harness the increasing importance of coffee shops’ role in local communities, acting as a workspace for newly hybrid workers.

To discover more about the UK Coffee Shops Market Report 2021, read our UK Coffee Market Report 2021or take a look at our extensive Coffee Market Research.

 

Quickly Understand

  • The impact of COVID-19 on the UK coffee shop market, with a focus on consumers’ decision-making process.
  • The annual changes in coffee shop statistics UK, particularly consumers’ visiting and purchasing habits.
  • Coffee drinkers’ preferences when choosing which coffee to buy.
  • Consumers’ usage and perceptions of key brands.
  • Explores UK coffee shop market size and UK coffee shop market share.

Covered in this Report

Brands: Costa Coffee, Starbucks, Caffè Nero, Coffee#1, BB’s Coffee & Muffins, Joe & The Juice, Esquires Coffee Houses, Tim Hortons, AMT Coffee, Harris + Hoole, Puccino’s, BTC, Love Coffee, Boston Tea Party, Caffè Ritazza, Coffee Republic, IKEA, Tesco, McDonald’s, Greggs, Pret, Black Sheep Coffee, Grind, Caravan, Department of Coffee and Social Affairs, Fernandez & Wells, Ozone Coffee, Carluccio’s.

Expert analysis from a specialist in the UK Coffee Shop Markey

This report, written by Trish Caddy, a leading analyst in the foodservice industry, delivers in-depth commentary and analysis to highlight current trends in the UK coffee shop market and add expert context to the numbers.

Food-led venues have a competitive advantage as they are offering crowd-pleasing food choices while undercutting specialist coffee shops on the price of drinks. This can be managed if specialised coffee shops broaden their range of food options, as a third of consumers would be most interested in buying seasonal food or drink from a coffee shop.

Trish Caddy - Research AnalystTrish Caddy
Senior Foodservice Analyst

Table of Contents

  1. Overview

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

    • Impact of COVID-19 on the coffee shops market
      • Figure 1: Short, medium and long-term impact of COVID-19 on coffee shops market, 2020-25
    • The market
    • The value of the coffee shops market still expected to be 23.5% shy of its 2019 level in 2021
    • Coffee shops’ sales set to reach £4.5 billion by 2026
      • Figure 2: COVID-19 scenario forecasts for the coffee shops market, 2016-26
    • Companies and brands
    • Brand awareness high across the board
      • Figure 3: Key metrics for selected brands, 2021
    • Despite slight drop in outlet numbers, Costa Coffee continues to dominate
      • Figure 4: Selected UK coffee shops, market share by outlet numbers, 2019-21
    • Potential spike in coffee prices
    • The consumer
    • Costa Coffee continues to lead in visitation
      • Figure 5: Annual changes in venues visited for drink purchases, 2020 and 2021
    • Consumers changing their drinks buying methods
      • Figure 6: Retail formats used for drink purchases from coffee shops, 2020 and 2021
    • App ordering fastest-growing trend
      • Figure 7: ordering methods used for drink purchases from coffee shops, 2020 and 2021
    • Hot chocolate takes second place
      • Figure 8: Types of drinks bought from coffee shops, 2021
    • Younger coffee drinkers are going against the grain
      • Figure 9: Coffee drink preferences, 2021
    • A seasonal food menu is the order of the day
      • Figure 10: Coffee shop menu interest, 2021
    • Under-45s drive mass personalisation
      • Figure 11: Coffee shop visitation drivers, 2021
    • The coffee shop experience is important
      • Figure 12: Attitudes towards coffee shops, 2021
  3. Issues and Insights

    • Catering to a dispersed consumer base
    • Become more agile
    • Next-gen workspace
    • Broadening the range of coffee shop menu items
    • Seasonal ingredients
    • Frozen desserts
    • HFSS-compliant food/drink
    • Coffee shops’ fight back against food-led brands that sell coffee
    • Be more food-led
    • Offer hyper customisation
    • Offer a caring coffee connection
  4. Market Size and Performance

    • Impact of COVID-19 on coffee shops market
      • Figure 13: Short, medium and long-term impact of COVID-19 on coffee shops market, 2020-25
    • The value of the coffee shops market still expected to be 23.5% shy of its 2019 level in 2021
      • Figure 14: UK forecast for the value of the coffee shops market, at current prices, 2016-21
  5. Market Forecast

    • Coffee shops’ sales set to reach £4.5 billion by 2026
      • Figure 15: UK forecast for the value of the UK coffee shops market, at current prices, 2016-26
    • Market drivers and assumptions
      • Figure 16: Key drivers affecting Mintel’s market forecast, 2020-26
    • Forecast methodology
  6. COVID-19 Scenario Performance

    • Mintel’s approach to predicting the impact of COVID-19
    • Fundamental differences in how COVID-19 is affecting consumer markets
    • The coffee shops market is highly reactive to COVID developments
      • Figure 17: COVID-19 scenario forecasts for the coffee shops market, 2016-26
    • COVID-19 market disruption: risks and outcomes
      • Figure 18: Summary of Mintel scenario expectations and the impact on the coffee shops market, 2021
  7. Market Drivers

    • Impact of temporary interruptions in supply chain on coffee shops
    • Underlying climate change impacts coffee bean production
    • Spending on non-alcoholic drinks bodes well for coffee shops
      • Figure 19: Spending on alcoholic drinks vs non-alcoholic drinks, 2021
    • Impact of a dispersed workforce on coffee shops
      • Figure 20: Retail formats used for drink purchases from coffee shops, by current working location, 2021
    • Inflationary pressures are mounting
    • Consumers’ financial wellbeing has slipped from its recent high point…
      • Figure 21: Household financial wellbeing index, 2016-21
    • …and concerns over inflation are coming to the fore
      • Figure 22: Consumer concerns over cost-of-living changes, 2021
  8. Key Players and Market Share

    • The big chains’ COVID-19 recovery
    • Costa Coffee
    • Starbucks
    • Caffè Nero
      • Figure 23: Selected UK coffee shops, market share by outlet numbers, 2019-21
    • Drive-throughs help Tim Hortons make inroads in the UK
    • Black Sheep Coffee’s start small, think big story
      • Figure 24: Selected modern independent coffee shops, by outlet numbers, 2019-21
    • Department of Coffee and Social Affairs enters liquidation
    • Food-led concepts expanding on the back of coffee sales
    • Visitation to a bakery or sandwich shop continues to grow
    • Carluccio’s launches food and coffee vending machine
      • Figure 25: Carluccio’s Grab and Go Vending Machine at Budgens Supermarket
    • Pret a Manger also launches vending machines
  9. Launch Activity and Innovation

    • Sustainable solutions
    • Reusable cup schemes
    • Food waste-not
    • Synthetic coffee
    • Coffee innovations
    • Cold coffee
    • Fortified coffee
    • Diversifying occasions
    • Alcohol
    • Be more food-led
  10. Advertising and Marketing Activity

    • Starbucks’ adspend jumped 119% in 2020
      • Figure 26: Advertising expenditure by selected coffee shops, 2017-21
    • Costa Coffee’s Olympic moment
    • Caffè Nero stops spending on above-the-line
    • McDonald’s continues to poke fun at coffee shops
    • Nielsen Ad Intel coverage
  11. Brand Research

    • Brand map
      • Figure 27: Attitudes towards and usage of selected brands, 2021
    • Brand awareness high across the board
      • Figure 28: Key metrics for selected brands, 2021
    • Higher income groups drive usage
      • Figure 29: Usage of brands in the last 12 months, by socio-economic group and household income, 2021
    • Younger generations are core users
      • Figure 30: Usage of coffee shop brands in the last 12 months, by generation, 2021
    • Brand attitudes: McCafé outranks the others in value
      • Figure 31: Attitudes, by brand, 2021
    • Brand personality: 42% consider Costa Coffee to be ethical
      • Figure 32: Brand personality – macro image, 2021
    • Pret represents a healthy food-led brand that sells coffee
      • Figure 33: Brand personality – micro image, 2021
  12. Annual Changes in Venues Visited

    • Out-of-home drinks visitation grew slightly in 2021
      • Figure 34: Coffee shops vs non-specialist venues visited, 2020 and 2021
    • Costa Coffee continues to lead in visitation
      • Figure 35: Venues visited for drink purchases, 2020 and 2021
  13. Annual Changes in Most Popular Coffee Shop Retail Formats

    • Consumers changing their drinks buying methods
    • Drive-through penetration grew 6 percentage points
    • Home delivery and mobile kiosks serve 25-44 year olds
      • Figure 36: Retail formats used for drink purchases from coffee shops, 2020 and 2021
  14. Annual Changes in Most Popular Coffee Shop Ordering Methods

    • Technology is driving new ways of drink ordering
    • App ordering fastest-growing trend
      • Figure 37: Ordering methods used for drink purchases from coffee shops, 2020 and 2021
    • 25-44 year olds continue to order from websites
      • Figure 38: Costa Coffee’s online ordering, 2021
      • Figure 39: Caffè Nero’s online ordering, 2021
  15. Types of Drinks Bought

    • Hot chocolate takes second place
      • Figure 40: Types of drinks bought from coffee shops, 2021
    • Customers in the South West are the top coffee drinkers
      • Figure 41: Coffee bought from coffee shops, by region, 2021
    • A premium chocolate drinks menu is where it’s at
    • Starbucks hits the sweet spot with hot chocolate
      • Figure 42: Venues visited for drink purchases, by types of drinks bought from coffee shops, 2021
  16. Coffee Drink Preferences

    • Younger coffee drinkers are going against the grain
    • Older Millennials more likely than others to prefer decaf
      • Figure 43: Coffee drink preferences, 2021
    • Non-dairy milk in cities and large towns
      • Figure 44: Starbucks’ non-dairy year-end festive drinks range
    • Syrup for the sweet tooth
    • Cold coffee for the Gen-Zers
  17. Menu Interest

    • A thoughtful food menu is the order of the day
    • Seasonal
      • Figure 45: Coffee shop menu interest, 2021
    • Alternative sweet treats
      • Figure 46: Food models of frozen dessert in a display cabinet, as seen in Coffeesmith (Singapore)
    • Guilt-free indulgence
  18. Visitation Drivers

    • The age divide
    • Over-45s seek a caring coffee connection
      • Figure 47: Coffee shop visitation drivers, 2021
    • Under-45s drive mass personalisation
      • Figure 48: Starbucks (US) drinks customisation
    • Fuelling the next-gen workspace
      • Figure 49: Hertford Coffee Lab
      • Figure 50: Coffee shop visitation drivers, by current working location, 2021
  19. Coffee Shop Attitudes

    • The coffee shop experience is important…
      • Figure 51: Attitudes towards coffee shops, 2021
    • …so is the convenience of takeaway coffee
      • Figure 52: Coffee shops – CHAID – tree output, 2021
  20. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  21. Appendix – Central Forecast Methodology

      • Figure 53: Value of the coffee shops market, 2016-26
    • Market forecast and prediction intervals
      • Figure 54: Coffee shops market forecast and prediction intervals, 2021-26
    • Market drivers and assumptions
      • Figure 55: Key drivers affecting Mintel’s market forecast, 2020-26
    • Forecast methodology
    • CHAID analysis Methodology
      • Figure 56: Coffee shops – CHAID – table output, 2021
  22. Appendix – COVID Scenario Performance Methodology and Assumptions

    • Scenario performance
      • Figure 57: Coffee shops market scenario performance, 2016-26
    • Rapid COVID recovery, central and extended COVID disruption scenarios outline
    • Scenario methodology

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.

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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

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*databooks not available with UK B2B Industry reports.

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