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Branded coffee chains continue to go from strength to strength

13 January 2012 by
Branded coffee chains continue to go from strength to strength

The branded coffee chain market has continued to grow in the UK and is expected to continue until at least 2015.

Data from market research firm Allegra Strategies, which surveyed 36,000 consumers, showed that the likes of Costa, Starbucks, Caffè Nero, Pret A Manger and Eat have shown "incredible resilience" by growing sales by 10% in 2011, reaching an estimated annual turnover of £2.1b. The figures show that the market has doubled in size since 2005.

High quality independent operators are helping to fuel demand, and are driving the branded coffee shop sector to increase focus on unique interiors and improving brewing methods.

However, Allegra did highlight some concerns for the weaker mid-sized and low-quality independents, which are suffering as the bigger brands expand. Consumers have also started to spend slightly less per visit, down from £3.50 in 2009, to £3.18 in 2011, reducing their food purchases from coffee shops.

Jeffrey Young, managing director of Allegra Strategies, said: "The UK coffee shop market continues to exceed expectations by growing significantly in value, but also in outlet numbers. 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 it part of their lifestyle."

FACTS AND FIGURES
£3.50
Average spend per visit in 2009
£3.18 Average spend per visit in 2011
1,342 The total number of UK outlets operated by market leader Costa
743 The number of sites in Starbucks' estate
15,085 Total number of branded chains, independents and non-specialist operators in the UK
£2.1b Estimated annual turnover of the UK branded coffee chain market
69% Proportion of customers who regularly purchased food in 2011
£3.2b The predicted value of the branded coffee chain market by 2015
39% The proportion of people who say they visit coffee shops more often than 12 months ago
71% Proportion of customers who regularly purchased food in 2009
1 in 10 The number of UK adults now visiting coffee shops daily
600 The number of new coffee outlets opened in the UK in 2011

Source: Survey of 36,000 consumers by Allegra Strategies

By Neil Gerrard

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