New research has found that 65% of UK consumers have visited a coffee shop in the past three months.
The research by Mintel showed the UK coffee shop market has enjoyed its biggest period of growth since 2008, when the market was valued at £2.2bn. Over the last five years, the market rose by 37%, up from £2.4bn in 2011 to reach £3.4bn in 2016. Between 2015 and 2016 sales increased a 10.4% - the biggest year-on-year boost witnessed in the last five years.
Over the next five years sales are forecast to jump a further 29%, reaching £4.3bn, according to the report.
The analysis of coffee shop usage showed it peaking among consumers aged 16-24 (73%). However, in a space traditionally dominated by specialist coffee retailers, it is notable that as many as 44% of Brits buy their hot drinks from non-specialists.
Trish Caddy, Foodservice Analyst at Mintel, said: “Britain’s appetite for coffee shops continues. Much of the growth we’ve seen in recent years is driven by habitual coffee drinkers and the continually increasing number of coffee retailers that are now ubiquitous on British high streets. A raft of non-specialist venues that feature barista-style coffee on their menus with takeaway functions are grabbing a slice of the coffee shop market. In the future, the top end of the market will continue to face intense competition from big pub chains, fast food chains and bakery shops that have now encroached on the coffee shop market, competing in terms of price, convenience and even geographical reach.”
Despite UK consumers’ love of coffee shops, for some, the draw of the kitchen remains too tempting. Half (51%) of coffee drinkers prefer to drink hot drinks at home rather than out-of-home, including 55% of men and 47% of women.
Caddy added: “The fact that half of coffee drinkers prefer to drink hot drinks at home could suggest that the range of beverages for at-home consumption may, in fact, be so well-established in the retail channel that more consumers can now recreate the coffee shop experience without having to leave the comforts of home.”