Branded coffee shops still on the up

21 December, 2011

Costa leading growth in the UK

The branded coffee shop sector has continued to grow at a healthy rate, up 10% in 2011 versus 2010, and is now worth an estimated £2.1bn, with further growth predicted.

Management consultancy Allegra Strategies has published the data from its largest consumer survey to date, for its Project Café11 UK report.

Allegra said the market had doubled in size since 2005, with consumers embracing the growing coffee culture trend. The report found that one in 10 UK adults now visit a coffee shop on a daily basis. Thirty-nine per cent also stated that they visited coffee shops more frequently than they did 12 months ago.

Jeffrey Young, managing director, Allegra Strategies, said: “More than 600 new coffee outlets opened in the UK during 2011. As consumers gain more opportunity to consume coffee through more outlets, they are making part of their lifestyle.”

However despite the growth in the sector, the report highlighted that consumers are actually spending less per visit from £3.50 in 2009 to £3.18 in 2011, and were reducing their food purchases.

Young said that it was the high quality independent coffee shops that were fuelling demand and driving the branded coffee shop sector to increase its focus on unique interiors and improved brewing methods.

Allegra revealed that Costa Coffee is leading the growth of the branded coffee shop market, with 167 new outlets opened in the UK this year. The consultancy predicted that like-for-like sales growth in the UK coffee sector would continue to grow, with leading brands to average high single digit growth over the next five years.

The report, which analysed more than 36,000 consumer responses, covers outlets including Costa Coffee, Starbucks, EAT, Greggs and Pret A Manger.

>>Coffee shops top eating out popularity poll





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