What you need to know

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.

Their lesser brand loyalty and love of variety and newness, however, pose a challenge for the industry stalwarts. Interesting storytelling, linking with overseas coffee cultures and a connoisseur proposition, however, hold potential for engaging with these groups.

Products covered in this Report

This Report covers coffee consumption in the retail market only. Therefore, it excludes 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 where, through various processes, 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. Sales of Nespresso are excluded from the market size.

The market definition includes decaffeinated coffee.


RTD coffee drinks, such as Starbucks Frappuccino and ready-to-drink cold-brew coffee, are excluded from Mintel’s market size figure for retail coffee, but are discussed in the Launch Activity and Innovation and Consumer sections of this Report where relevant.

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