Table of Contents
Overview
-
- What you need to know
- Products covered in this Report
Executive Summary
-
- The market
- Coffee shops market is resilient…
- …and will continue to thrive
-
- Figure 1: UK coffee shops market, value sales and forecast, 2013-23
- Companies and brands
- Overall store count continues to grow
- Third-wave coffee shops expanding fast
-
- Figure 2: Selected UK coffee shops’ market share, by outlet numbers, 2015-18
- The consumer
- Non-specialists are challenging coffee shops
-
- Figure 3: Participation in types of venues visited, October 2018
- Costa most visited
-
- Figure 4: Venues visited, October 2018
- Coffee is particularly popular amongst over-45s
-
- Figure 5: Types of hot drinks bought out of home, October 2018
- Four in five coffee drinkers want a personalised coffee drink
-
- Figure 6: Interest in customisation, October 2018
- Caffeine-free complements health-boosting hot drinks
-
- Figure 7: Drinks trends, October 2018
- Room for improvement when it comes to food options
-
- Figure 8: Attitudes towards coffee shops, October 2018
- Most have a negative view of the coffee served at a fast food café
-
- Figure 9: Correspondence analysis of coffee shops, October 2018
- What we think
Issues and Insights
-
- Can an own-brand coffee shop model work in the grocery channel?
- The facts
- The implications
- Tailored offerings will be key to survival in challenging retail conditions
- The facts
- The implications
- Opportunities for coffee shops to premiumise tea
- The facts
- The implications
The Market – What You Need to Know
-
- Coffee shops market continues to thrive
- Sugar reduction work well underway
- Public supports legislation to tackle single-use cups
Market Size and Forecast
-
- Value of coffee shops market expected to hit £3.75 billion this year
-
- Figure 10: UK coffee shops market, value sales and forecast, 2013-23
- Market faces tough competition from non-specialists
-
- Figure 11: UK coffee shops market, value sales and forecast, 2013-23
- Forecast methodology
Market Drivers
-
- PHE publishes category-specific targets for sugar reduction
- Coffee prices fall amid oversupply
- Public supports legislation to tackle single-use cups
Companies and Brands – What You Need to Know
-
- Overall store count continues to grow
- Third-wave coffee shops growing fast
- Grab-and-go and deli food-focused formats
- Standout sustainable schemes
- McCafé now the biggest ad spender for out-of-home coffee
- Costa Coffee is a brand with staying power
Market Share
-
- Overall store count expected to grow by 9.3% in 2018
-
- Figure 12: Selected UK coffee shops’ market share, by outlet numbers, 2015-18
- Third-wave coffee shops growing fast
-
- Figure 13: Department of Coffee, Rathbone Place (London)
- Ones to watch
Key Players
-
- Branded chains
- Costa Coffee
-
- Figure 14: Key financial data for Costa Limited, 2015-18
- Caffè Nero
-
- Figure 15: Key financial data for Caffè Nero Group Ltd, 2015-17
- Starbucks
-
- Figure 16: Key financial data for Starbucks Coffee Company (UK) Ltd, 2015-17
- Coffee#1
-
- Figure 17: Key financial data for Coffee#1 Limited, 2015-17
- Third-wave coffee shops
- SOHO Coffee Co.
-
- Figure 18: Key financial data for SOHO Coffee Shops Limited, 2015-17
- Joe & The Juice
-
- Figure 19: Key financial data for Joe & The Juice UK Limited, 2016 and 2017
- Taylor St Baristas
Launch Activity and Innovation
-
- Food-focused formats
- Grab-and-go
- Delicatessen
- Standout menu options
- Vegan
- Alcoholic coffee
-
- Figure 20: Sandows cold-brew concentrate for coffee cocktails
- Mini portion
-
- Figure 21: Nutrition information of a hot chocolate drink by Costa Coffee
- Standout sustainable schemes
- Ban on cups
- Eco-conscious Costa
- Cup Club
- Paper cup charge
Advertising and Marketing Activity
-
- McCafé continues to win big with humour
- Caffè Nero drives recruitment and brand metrics
-
- Figure 22: Advertising expenditure, by selected coffee shops, 2014-18
- McDonald’s goes bigger on digital
-
- Figure 23: Advertising expenditure, by selected coffee shops, by media type, 2014-18
- Costa drives awareness of its recycling efforts
- Nielsen Ad Intel coverage
Brand Research
-
- Brand map
-
- Figure 24: Attitudes towards and usage of selected brands, September 2018
- Key brand metrics
-
- Figure 25: Key metrics for selected brands, September 2018
- Brand attitudes: McCafé offers the best value but lacks consumer trust
-
- Figure 26: Attitudes, by brand, September 2018
- Brand personality: McCafé outranks the other brands as the most accessible
-
- Figure 27: Brand personality – Macro image, September 2018
- Caffè Nero and Starbucks need to stand out more as they are too samey
-
- Figure 28: Brand personality – Micro image, September 2018
- Brand analysis
- Costa Coffee is a brand with staying power
-
- Figure 29: User profile of Costa Coffee, September 2018
- McCafé still can’t shake off McDonald’s unhealthy image
-
- Figure 30: User profile of McDonald’s McCafé, September 2018
- Pret a Manger outranks the other brands as the most healthy
-
- Figure 31: User profile of Pret a Manger, September 2018
- Caffè Nero needs to improve its value proposition
-
- Figure 32: User profile of Caffè Nero, September 2018
- Starbucks has to increase brand transparency
-
- Figure 33: User profile of Starbucks, September 2018
The Consumer – What You Need to Know
-
- Buying hot drinks out of home: specialists vs non-specialists
- Costa most visited
- Coffee is particularly popular amongst over-45s
- Four in five coffee drinkers want a personalised coffee drink
- Caffeine-free complements health-boosting hot drinks
- Consumers are lukewarm about the savoury food served at coffee shops
- Most have a negative view of the coffee served at a fast food café
Buying Hot Drinks Out of Home
-
- Three in four bought hot drinks out of home
-
- Figure 34: Overall participation in buying a hot drink out of home, October 2018
- Usage of specialists versus non-specialists on a par
-
- Figure 35: Participation in types of venues visited, October 2018
Venues Visited
-
- One in three bought from Costa Coffee
-
- Figure 36: Venues visited, October 2018
- One in four visited independents
-
- Figure 37: Type of independent venues visited, October 2018
- One in four bought hot drinks from fast food chains
-
- Figure 38: Outlets used, by outlets used, October 2018
- One in three Younger Millennials visited Starbucks
-
- Figure 39: Venues visited, by age, October 2018
- Caffè Nero customers are connoisseurs
Types of Drinks
-
- Older consumers more likely to order coffee
-
- Figure 40: Types of hot drinks bought out of home, October 2018
- Tea has mass appeal
- Half of Millennials bought hot chocolate
Interest in Customisation
-
- Four in five coffee drinkers want a personalised coffee drink
-
- Figure 41: Interest in customisation, October 2018
- Men most interested in coffee variety and roast level
-
- Figure 42: Interest in customisation, by outlets used, October 2018
- Women most interested in added flavourings, milk type and toppings
Drinks Trends
-
- Premium decaf coffee appeals to all
-
- Figure 43: Drinks trends, October 2018
- Millennials and women demand healthier syrups
-
- Figure 44: Zero-calorie zero-sugar syrups, by TRKG
- Costa reformulates its recipes to reduce sugar
-
- Figure 45: Drinks trends, by types of hot drinks bought out of home, October 2018
-
- Figure 46: Drinks trends, by gender, October 2018
- Caffeine-free versus functional hot drinks
-
- Figure 47: Caffeine-free hot drinks, by Local Hero Fulham (London)
-
- Figure 48: Drinks trends, by generation, October 2018
- London fuels demand for plant-based milk
-
- Figure 49: Interest in hot drinks made with plant-based milk, by region, October 2018
Attitudes towards Coffee Shops
-
- Digital kiosks give people more time to customise their orders…
-
- Figure 50: Attitudes towards coffee shops, October 2018
- …yet, three in four look for human connection
- Room for improvement when it comes to food options
-
- Figure 51: Any outlets used, by attitudes towards coffee shops, October 2018
- Happy Hour boosts footfall
-
- Figure 52: Attitudes towards coffee shops, by outlets used, October 2018
- Co-working spaces help increase dwell time
-
- Figure 53: Attitudes towards coffee shops, by outlets used, October 2018
-
- Figure 54: Example of a coffee shop with dedicated working space
- Scope for coffee shops to stay open later – CHAID Analysis
-
- Figure 55: Coffee shops – CHAID – Tree output, October 2018
- Scope to boost wet-led sales
-
- Figure 56: Examples of late-night coffee shops in London
Perceptions of Different Venues
-
- Most have a positive view of the coffee served at Costa
-
- Figure 57: Correspondence analysis of coffee shops, October 2018
- Most have a negative view of the coffee served at a fast food café
-
- Figure 58: Correspondence analysis of coffee shops, October 2018
- Gender difference in perceptions
-
- Figure 59: Costa Coffee in-store branding, November 2018
-
- Figure 60: Examples of nitro cold-brew coffee
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
- CHAID methodology
-
- Figure 61: Coffee shops – CHAID – Table output, October 2018
- Correspondence analysis methodology
Appendix – Market Size and Forecast
-
- Forecast methodology
-
- Figure 62: Best- and worst-case forecasts for UK coffee shops market, 2018-23
Back to top