The UK remains Europe’s largest coffee shop market, growing 4.4% over the last 12 months to reach 9,885 outlets, compared to overall European market growth of 3.3%, according to World Coffee Portal’s Project Café Europe 2023 report.
Collectively, the UK, Germany and Russia account for 49% of all the branded coffee shop outlets in Europe, although Germany experienced a 1.3% in the past year, while Russia grew by 2.2%.
UK-based Costa Coffee remains Europe’s largest coffee chain with 3,122 outlets across 18 markets. Starbucks opened 89 net new outlets over the last 12 months to become the region’s second largest operator with 3,075 stores, overtaking McCafé, which closed net 90 stores and now operates 2,923 outlets, found the report.
World Coffee Portal forecasts the European branded coffee shop market will exceed 44,100 outlets by March 2024 and 49,600 outlets by March 2028, representing five-year growth of 3.0% CAGR, with the UK to see growth of 5.6% CAGR over the same period, with sales to exceed £6.4bn.
World Coffee Portal forecasts the UK branded coffee shop market will surpass 10,200 outlets in 2024 and exceed 11,600 stores by January 2028.
Commenting on the report findings, Jeffrey Young, founder and CEO, Allegra Group, said: “European coffee shop operators are facing a convergence of economic headwinds, including high inflation, energy, labour costs, instability generated by the war in Ukraine and the risk of a wider global downturn.
“Nevertheless, with most European branded coffee shop markets achieving outlet growth over the last 12 months, there is clearly strong demand for coffee shops across the continent, with consumers reluctant to give up their daily coffee ritual despite a tougher economic outlook.
He added: “We expect most European branded coffee shop markets to weather the current instability and maintain steady growth in the years ahead.”
