What you need to know
Estimated at £1.1bn in 2015 the UK coffee market is undergoing a process of gradual change. The instant segment, which still accounts for almost three quarters of coffee sales is in long term decline, while pods continue to record strong growth.
The pods segment is expected to continue to drive volume growth, as more operators bring coffee pod products to market and the cost of pod machines fall further, lowering two key barriers around the price of machines and the price of pods.
Covered in this report
This report covers coffee consumption for the retail market only. Therefore, it does not include coffee shops or other outlets where coffee is purchased and drunk outside the home. Sales through vending machines and self-serve coffee outlets are also excluded.
The following broad segments make up the coffee retail market:
Instant coffee – this is the largest sector accounting just over 80% of the market. This is where, through various processes, the coffee is dehydrated into the form of powder or granules for sale, and prepared by adding these to hot water.
Roast and ground – this is when coffee is sold in the form of coffee beans or when the coffee beans are sold ready-ground.
Coffee pods feature pre-packaged ground beans sold in their own filter to make the coffee-making process easier. Included in this category are products for open and closed coffee systems, such as those that take a cartridge or pod.
Ready-to-drink coffee – this is chilled ready-to-drink (RTD) coffee drinks such as Starbucks Frapuccino. These currently make up a very small segment of the market and Mintel’s market size figures exclude this segment.
The market definition includes decaffeinated coffee.
