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UK Coffee market report

Covered in this report

Britain today is a nation of coffee drinkers as much as tea lovers, usage of each standing at four out of five adults. Retail sales of coffee are expected to reach 69 million kg in 2019, up 8% since 2014, while inflation and trading up have fuelled value growth of 17% over the period to £1.27 billion.

While instant coffee dominates with a 65% value share, ground coffee, beans and pods continue to gain ground. Promisingly for the longer term, these and instant coffee mixes are engaging younger age groups with the market, standard instant coffee holding less appeal for them than older groups.

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Expert analysis from a specialist in the field

Written by Kiti Soininen, a leading analyst in the Food & Drink sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Britain today is a nation of coffee drinkers as much as tea lovers, usage of each standing at four out of five adults. The industry stalwarts, however, face a challenge in that the younger age groups are noticeably less brand-loyal than older coffee lovers. Compelling storytelling can win them over, but this is a sphere in which craft brands have taken the lead Kiti Soininen
Food & Drink Analyst

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What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
        • Excluded
        • Executive Summary

            • The market
              • Falling prices see coffee volumes grow ahead of values in 2018 and 2019
                • Figure 1: UK retail value sales of coffee, 2014-24
              • Further modest volume growth expected going forward
                • Instant coffee remains dominant
                  • Figure 2: UK retail value sales of coffee, by segment, 2017-19
                • Household incomes are up but future remains uncertain
                  • Companies and brands
                    • Nescafé’s sales dip, Kenco grows
                      • Figure 3: Leading brands’ sales and shares in the UK retail instant coffee market, by value, 2017/18 and 2018/19
                    • Taylors retains top position by value in ground coffee/coffee beans
                      • Environmentally friendly claims rise further
                        • Nestlé moves into coffee bags, organic and plant-based
                          • Rise in above-the-line spending in 2018
                            • 2019 themes range from curiosity to authenticity and coffee bags
                              • The consumer
                                • Four in five adults drink coffee
                                  • Figure 4: Types of coffee drunk at home in the last month, June 2019
                                • Favourite brand matters to half of coffee drinkers, ethical to one in four
                                  • Figure 5: Factors considered most important in coffee, June 2019
                                • One in three are interested in coffee to help them relax
                                  • Figure 6: Interest in product concepts in coffee, June 2019
                                • Coffee in the style of different countries interests half of users
                                  • Figure 7: Behaviours relating to coffee, June 2019
                                • What we think
                                • Issues and Insights

                                  • Storytelling has potential to engage the young
                                    • The facts
                                      • The implications
                                        • Tangibility is needed for brands to capitalise on their ethical endeavours
                                          • The facts
                                            • The implications
                                              • Coffee in the style of different countries interests half of users
                                                • The facts
                                                  • The implications
                                                  • The Market – What You Need to Know

                                                    • Falling prices see coffee volumes grow ahead of values in 2018 and 2019
                                                      • Further modest volume growth expected going forward
                                                        • Instant coffee remains dominant
                                                          • Household incomes are up but future remains uncertain
                                                          • Market Size and Forecast

                                                            • Falling coffee prices see volumes grow ahead of values in 2018
                                                              • Figure 8: UK retail value and volume sales of coffee, 2014-24
                                                            • Further modest volume growth expected going forward
                                                              • Figure 9: Forecast of UK retail value sales of coffee, 2014-24
                                                              • Figure 10: Forecast of UK retail volume sales of coffee, 2014-24
                                                            • Forecast methodology
                                                            • Market Segmentation

                                                              • Instant coffee remains dominant
                                                                • Figure 11: UK retail value and volume sales of coffee, by segment, 2017-19
                                                              • Ground coffee and beans continue to grow
                                                                • Coffee pods remain stagnant in volume
                                                                • Market Drivers

                                                                  • Ageing population will support retail coffee sales
                                                                    • Figure 12: Trends in the age structure of the UK population, 2014-19 and 2019-24
                                                                  • Coffee shops pose competition to retail coffee, but continue to inspire NPD
                                                                    • Public spotlight on packaging waste
                                                                      • BCA announces sustainability goals for coffee category
                                                                        • Household incomes are up but future remains uncertain
                                                                          • Figure 13: Annual percentage change in CPI and AWE (regular pay), monthly basis, January 2013-Aril 2019
                                                                      • Companies and Brands – What You Need to Know

                                                                        • Nescafé’s sales dip, Kenco grows
                                                                          • Taylors retains top position by value in ground coffee/coffee beans
                                                                            • Environmentally friendly claims rise further
                                                                              • Nestlé moves into coffee bags, organic and plant-based
                                                                                • Rise in above-the-line spending in 2018
                                                                                  • 2019 themes range from curiosity to authenticity and coffee bags
                                                                                  • Market Share

                                                                                    • Nescafé’s sales dip
                                                                                      • Figure 14: Leading brands’ sales and shares in the UK retail instant coffee market, by value and volume, 2017/18 and 2018/19
                                                                                    • JDE sees growth for most of its brands
                                                                                      • Carte Noire back in growth under Lavazza
                                                                                        • Taylors retains top position by value in ground coffee/coffee beans
                                                                                          • Figure 15: Leading brands’ sales and shares in the UK retail ground coffee/coffee beans market (excluding coffee pods), by value and volume, 2017/18 and 2018/19
                                                                                      • Launch Activity and Innovation

                                                                                        • Pods/bags continue to garner the most NPD activity
                                                                                          • Figure 16: Share of new product launches in the UK retail coffee market, by format, 2015-19
                                                                                        • Nescafé moves into coffee bags…
                                                                                          • …in a step needed to engage younger coffee lovers
                                                                                            • Figure 17: Selected coffee bag launches, 2019
                                                                                          • Nestlé expands its offering
                                                                                            • Starbucks-branded launches roll out in 2019
                                                                                              • Nescafé Gold moves into organic…
                                                                                                • … and embraces plant-based trend
                                                                                                  • Figure 18: Selected coffee launches by Nestlé, 2019
                                                                                                • Nespresso showcases rare coffees with “Reviving Origins”
                                                                                                  • Nescafé Azera revamps packaging
                                                                                                    • Figure 19: Nescafé Azera previous and revamped packaging, 2018 and 2019
                                                                                                  • Environmentally friendly claims rise further
                                                                                                    • Environmentally friendly packaging claims rise
                                                                                                      • Half of launches make environmentally friendly product claims
                                                                                                        • Figure 20: Share of UK coffee launches featuring ethical claims, 2015-19
                                                                                                      • Lavazza launches compostable coffee pods
                                                                                                        • Smaller brands explore sugarcane and lignin
                                                                                                          • Figure 21: Examples of compostable coffee launches, 2019
                                                                                                        • Coffee looks to plants for a boost and alternatives
                                                                                                          • Mushrooms and beetroot make their way to coffee
                                                                                                              • Figure 22: Mushroom and beetroot coffee launches, 2018-19
                                                                                                            • Competition ramps up further in RTD coffee
                                                                                                              • Leading soft drinks conglomerates enter RTD coffee
                                                                                                                • Own-label and brands from outside coffee also heat up competition
                                                                                                                  • Figure 23: Selected iced coffee launches, 2019
                                                                                                              • Advertising and Marketing Activity

                                                                                                                • Rise in above-the-line spending
                                                                                                                  • Figure 24: Total above-the-line, online display and direct mail advertising expenditure on coffee, 2016-19
                                                                                                                  • Figure 25: Above-the-line, online display and direct mail advertising expenditure on coffee, by top advertisers, 2016-19
                                                                                                                • Nescafé Azera focuses on curiosity in brand overhaul
                                                                                                                  • Taylors of Harrogate campaign puts the spotlight on coffee bags
                                                                                                                    • JDE continues to support L’OR and steps up spend on Kenco
                                                                                                                      • Lavazza highlights Italian origin in “More than Italian” advert
                                                                                                                        • Lavazza announces football partnerships
                                                                                                                          • Nielsen Ad Intel coverage
                                                                                                                          • The Consumer – What You Need to Know

                                                                                                                            • Four in five adults drink coffee
                                                                                                                              • Favourite brand matters to half of coffee drinkers
                                                                                                                                • Ethical factors valued by just one in four
                                                                                                                                  • One in three are interested in coffee to help them relax
                                                                                                                                    • Coffee that is good for digestion appeals to one in three
                                                                                                                                      • Coffee in the style of different countries interests half of users
                                                                                                                                        • Subscription services appeal to one in three
                                                                                                                                        • Types of Coffee Drunk at Home

                                                                                                                                          • Four in five adults drink coffee
                                                                                                                                            • Instant leads, other formats are making headway among younger groups
                                                                                                                                              • Figure 26: Types of coffee drunk at home in the last month, June 2019
                                                                                                                                            • Decaf gains modest ground
                                                                                                                                              • Figure 27: Drinking of standard and decaffeinated coffee, June 2019
                                                                                                                                          • Factors Most Important in Coffee

                                                                                                                                            • Favourite brand matters to half of coffee drinkers
                                                                                                                                              • Figure 28: Factors considered most important in coffee, June 2019
                                                                                                                                            • Storytelling holds potential to engage the young
                                                                                                                                              • Figure 29: Coffee launches spotlighting the brand story, 2018-19
                                                                                                                                            • The ‘technical’ details of coffee spark limited interest
                                                                                                                                              • Figure 30: ‘Discover a world of coffee’ map at Sainsbury’s, March 2019
                                                                                                                                            • Ethical factors valued by just one in four
                                                                                                                                              • Organic can fuel interest by spotlighting tangible aspects
                                                                                                                                                • Figure 31: Source Climate Change Coffee and Arvid Nordquist Giusto Espresso highlight sustainability, 2019
                                                                                                                                            • Interest in Innovation in Coffee

                                                                                                                                              • One in three are interested in coffee to help them relax
                                                                                                                                                • Figure 32: Interest in product concepts in coffee, June 2019
                                                                                                                                              • Marketing holds potential to help align coffee brands with relaxation
                                                                                                                                                • Figure 33: Coffee launches calling out relaxation on-pack, 2018-19
                                                                                                                                              • Coffee that is good for digestion interests one in three
                                                                                                                                                • Calling out lows and highs to forge digestion-friendly connotations
                                                                                                                                                  • Figure 34: Examples of international coffee products linking with digestive benefits, 2018-19
                                                                                                                                                • Pesticide-free farming chimes with 28%
                                                                                                                                                  • Figure 35: Cafédirect Organic Peruvian Reserve and CRU Kafe Organic Espresso Blend, 2018-19
                                                                                                                                              • Behaviours Relating to Coffee

                                                                                                                                                • Flavour descriptions leave coffee drinkers wanting
                                                                                                                                                  • Figure 36: Behaviours relating to coffee, June 2019
                                                                                                                                                • Coffee in the style of different countries interests half of users
                                                                                                                                                  • The young show the keenest interest in international coffees
                                                                                                                                                    • Subscription services appeal to one in three
                                                                                                                                                      • Numerous small brands offer subscription schemes
                                                                                                                                                      • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                          • Abbreviations
                                                                                                                                                            • Consumer research methodology
                                                                                                                                                            • Appendix – Market Size and Forecast

                                                                                                                                                              • Forecast methodology
                                                                                                                                                                  • Figure 37: Total UK retail value sales of coffee, best- and worst-case forecast, 2019-24
                                                                                                                                                                  • Figure 38: Total UK retail volume sales of coffee, best- and worst-case forecast, 2019-24
                                                                                                                                                              • Appendix – Market Share

                                                                                                                                                                  • Figure 39: Leading manufacturers’ sales and shares in the UK retail instant coffee market, by value and volume, 2017/18 and 2018/19
                                                                                                                                                                  • Figure 40: Leading manufacturers’ sales and shares in the UK retail ground coffee/coffee beans market (excluding coffee pods), 2017/18 and 2018/19

                                                                                                                                                              About the report

                                                                                                                                                              This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                                                                                                                              • The Consumer

                                                                                                                                                                What They Want. Why They Want It.

                                                                                                                                                              • The Competitors

                                                                                                                                                                Who’s Winning. How To Stay Ahead.

                                                                                                                                                              • The Market

                                                                                                                                                                Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                                                                                                                              • The Innovations

                                                                                                                                                                New Ideas. New Products. New Potential.

                                                                                                                                                              • The Opportunities

                                                                                                                                                                Where The White Space Is. How To Make It Yours.

                                                                                                                                                              • The Trends

                                                                                                                                                                What’s Shaping Demand – Today And Tomorrow.

                                                                                                                                                              Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

                                                                                                                                                              Description