Table of Contents
Executive Summary
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- The market
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- Figure 1: Consumer spending in cafés and coffee shops, by segment, IoI, 2016 (estimated)
- Forecast
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- Figure 2: Indexed estimated value of the Irish café and coffee shop market, NI and RoI, 2012-22
- Market factors
- Coffee costs set to increase in 2017
- Controversy over bacteria in coffee shop ice
- Salt and sugar levels under scrutiny
- The consumer
- International coffee shop brands and fast food restaurants key destinations
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- Figure 3: Types of coffee shops and cafés that consumers have visited in the last three months for a hot drink, snack or sandwich, NI and RoI, June 2017
- Service stations and international sandwich bars see strong usage
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- Figure 4: Types of coffee shops and cafés that consumers have visited in the last three months for a hot drink, snack or sandwich, NI and RoI, June 2017
- Lunchtime and coffee break key drivers for usage
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- Figure 5: Occasions that consumers have visited a coffee shop or sandwich shop in the last three months, NI and RoI, June 2017
- Consumers want more recycling options at coffee shops
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- Figure 6: Agreement with statements relating to coffee shops and sandwich shops, NI and RoI, June 2017
The Market – What You Need to Know
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- Growth continues for coffee shops in 2017
- 2017 sees cost of coffee increase in NI and RoI
- Contamination of ice could be an issue
- High sugar and salt levels may be off-putting to health-conscious consumers
Market Size and Forecast
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- Coffee shop sales improve between 2015 and 2017 despite Brexit woes
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- Figure 7: Estimated value of the Irish café and coffee shop market, IoI, NI and RoI, 2012-22
- Drinks continue to make up largest segment of coffee shop and café spending
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- Figure 8: Consumer spending in cafés and coffee shops, by segment, IoI, 2016 (estimated)
Market Drivers
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- Brexit and climate conditions causing coffee prices to increase in UK/NI
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- Figure 9: Consumer price indices of coffee and tea, UK (including NI), January 2015-May 2017
- RoI consumers experience less coffee price growth
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- Figure 10: Consumer price indices of coffee and tea, RoI, January 2015-May 2017
- Hygiene issues may affect sales in some coffee chains
- Artisanal coffee shops and sandwich shops could benefit
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- Figure 11: Agreement with the statement “I trust the quality of goods in a food specialist/artisan more than the goods in supermarkets”, NI and RoI, April 2016
- Sugar and salt content a growing issue
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- Figure 12: Select diet and eating habits that consumers claim to typically do, NI and RoI, August 2016
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- Figure 13: Agreement with the statement “Menus should display the nutritional content for each item”, NI and RoI, April 2017
- Sugar in drinks a growing concern
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- Figure 14: Top 10 most sugary hot drinks (in grams) from selected foodservice operators, UK, February 2016
- Salt content in sandwiches highlighted
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- Figure 15: Selected sandwiches from coffee shops, by salt content, UK, February 2016
- Demand for energy boost will help sustain demand
- Long working hours creating need for stimulants and convenience
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- Figure 16: Average work hours per week, NI and RoI, 2013-16
- Potential demand for relaxing drinks too
Companies and Innovations – What You Need To Know
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- Coffee market faces global supply shortage, driving premiumisation
- Coffee brands starting to distance themselves from sugar
- Cold coffee yet to reach full potential in Europe, although showing promise with Millennials
- Café culture coupled with international supply drop means price rises for Irish consumers
Who’s Innovating?
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- Third-wave coffee seeks to move coffee beyond a product and towards an experience
- 3fe (Third Floor Espresso)
- Coffeeangel
- Clement & Pekoe
- Caffè Nero rolls out mobile wallet scheme
- A greater choice of food and drinks to increase all-day usage
- Inclusion of alcoholic drinks blurs line between café and bar to increase evening visits
- Cascara launches in US to satisfy Millennial demand for natural flavours
Companies and Brands
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- BB’s Coffee and Muffins
- Key facts
- Product portfolio
- Clements
- Key facts
- Product portfolio
- Recent developments
- Costa Coffee
- Key facts
- Product portfolio
- Recent developments
- Esquires Coffee
- Key facts
- Product portfolio
- Recent developments
- Greggs
- Key facts
- Product portfolio
- Recent developments
- Insomnia
- Key facts
- Product portfolio
- Recent developments
- McDonald’s McCafé
- Key facts
- Product portfolio
- Recent developments
- Caffè Nero
- Key facts
- Product portfolio
- Recent developments
- O’Brien’s
- Key facts
- Product portfolio
- Starbucks
- Key facts
- Product portfolio
- Recent developments
- Subway
- Key facts
- Product portfolio
- Recent developments
- The Streat
- Key facts
- Product portfolio
- Barista Bar (Henderson Foodservice Ltd.)
- Key facts
- Product portfolio
- Recent developments
The Consumer – What You Need to Know
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- International coffee chains are the key providers
- Service stations see strong RoI usage
- Lunchtime usage high among working consumers
- Nine in 10 see recycling at coffee shops as important
Types of Coffee Shops Visited
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- International coffee shops and fast food chains most likely used for a hot drink, etc
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- Figure 17: Types of coffee shops and cafés that consumers have visited in the last three months for a hot drink, snack or sandwich, NI and RoI, June 2017
- Women more inclined to opt for international coffee shops
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- Figure 18: Consumers who have visited an international coffee shop brand (eg Starbucks, Costa) in the last three months for a hot drink, snack or sandwich, by gender, NI and RoI, June 2017
- Younger consumers embracing café culture
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- Figure 19: Consumers who have visited an international coffee shop brand (eg Starbucks, Costa) in the last three months for a hot drink, snack or sandwich, by age, NI and RoI, June 2017
- Fast food outlets used by half for hot drinks and café snacks
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- Figure 20: Consumers who have visited a fast food restaurant (eg McDonald's McCafé/KFC) for coffee/ café snacks only in the last three months, by household income, NI and RoI, June 2017
- RoI consumers twice as likely to have used domestic coffee chain
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- Figure 21: Consumers who have visited an NI/Irish coffee shop chain (eg Clements, Insomnia) in the last three months for a hot drink, snack or sandwich, by gender and social group, NI and RoI, June 2017
- RoI consumers stronger users of in-store kiosks
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- Figure 22: Consumers who have visited an in-store branded kiosk for coffee/snacks (eg Tim Hortons, Costa Express) in the last three months for a hot drink, snack or sandwich, by work status, NI and RoI, June 2017
Types of Sandwich Shops Visited
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- Sandwich chains used by half in NI, service stations a key location in RoI
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- Figure 23: Types of coffee shops and cafés that consumers have visited in the last three months for a hot drink, snack or sandwich, NI and RoI, June 2017
- International sandwich brands see strongest usage with younger consumers
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- Figure 24: Consumers who have visited an international sandwich shop brand (eg Subway) in the last three months for a hot drink, snack or sandwich, by age, NI and RoI, June 2017
- Service station concessions see strong use in RoI
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- Figure 25: Consumers who have visited a service stations concession (eg Streat/ Applegreen) in the last three months for a hot drink, snack or sandwich, by age, NI and RoI, June 2017
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- Figure 26: Ownership of a car, by age, NI and RoI, February 2017
- The Greggs effect sees strong NI usage of bakeries
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- Figure 27: Consumers who have visited a bakery in the last three months for a hot drink, snack or sandwich, by gender and age, NI and RoI, June 2017
Reasons for Visiting Coffee and Sandwich Shops
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- Lunch key occasion for coffee shops and sandwich shops
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- Figure 28: Occasions that consumers have visited a coffee shop or sandwich shop in the last three months, NI and RoI, June 2017
- Lunchtime key for working consumers
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- Figure 29: Consumers have visited a coffee shop or sandwich shop in the last three months for lunch, by work status, NI and RoI, June 2017
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- Figure 30: Seasonally adjusted unemployment rate (%), NI and RoI, March-May 2013-17
- Taking a break important to men
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- Figure 31: Consumers who have visited a coffee shop or sandwich shop in the last three months for a break/ coffee break, by gender, NI and RoI, June 2017
- ABC1 consumers catch up with family
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- Figure 32: Consumers who have visited a coffee shop or sandwich shop in the last three months to catch up with friends or family, by social class, NI and RoI, June 2017
- NI consumers more likely to use coffee/sandwich shops as part of a day out
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- Figure 33: Consumers who have visited a coffee shop or sandwich shop in the last three months as part of a day out, by gender, NI and RoI, June 2017
Attitudes towards Coffee Shops and Sandwich Shops
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- Recycling a key priority for coffee shops
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- Figure 34: Agreement with statements relating to coffee shops and sandwich shops, NI and RoI, June 2017
- Coffee cup waste a hot button issue
- Larger chains seen as offering consistent quality
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- Figure 35: Agreement with the statement ‘You know what to expect in terms of quality from larger coffee shop chains (eg Costa Coffee, Starbucks)’, by age, NI and RoI, June 2017
- Atmosphere key to three quarters of consumers
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- Figure 36: Agreement with the statement ‘Atmosphere is important when choosing which hot drink outlet to go to’, by gender, NI and RoI, June 2017
- Half of consumers want more free-from options
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Generational cohort definitions
- Abbreviations
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