Coffee shop market grows despite recession

19 October 2009

The European branded coffee shop market has grown at a rate of 9% this year, despite the recession, according to new research from analyst firm Allegra Strategies.

The Project Café9 Europe report revealed that the European branded coffee shop market is now made up of more than 9,300 outlets. The UK is by far the largest branded coffee chain market with 3,864 outlets.

Trading conditions have been difficult as a result of the economic downturn, although the sector has been less affected than other industries, Allegra said.

The analyst firm expects more growth in the market, claiming it is "a long way from saturation", predicting there will be more than 11,000 outlets by 2012.

Allegra Strategies managing director Jeffrey Young said that despite the recession the branded coffee shop market was "firmly on track" for the future.

"The speakers, discussions and debates from European Coffee Symposium in Vienna clearly confirmed that the branded coffee shop industry is firmly on track for growth across Europe over the next three to five years," he said.

"This is despite a very deep recession across most markets. One of the most important take-home learnings is the absolute importance of innovation across every element of one's business, including product development, staff engagement and creating a compelling and relevant environment."

Allegra crowned Caffè Nero the most admired coffee chain brand in the UK & Ireland, while Whitbread-owned Costa Coffee was named the best performing chain in Europe and Starbucks the most ethical coffee chain in Europe.

Costa Coffee boosts Whitbread's interim results >>

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By Daniel Thomas

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