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Strong growth predicted for £1b UK branded coffee bar market

27 April 2006
Strong growth predicted for £1b UK branded coffee bar market

The UK branded coffee market, now valued at £1.1b, is set to grow by 8.9% per annum, according to new research.

A study conducted by Allegra Strategies into the European coffee market found that more than 2,650 sites - 48% of total UK outlets - were branded operations as of December last year.

This means the UK has more branded coffee bars than anywhere else in Europe.

Starbucks, Costa and Caffè Nero accounted for 80% of new openings last year, and 58% of total outlets Europe-wide.

Pret A Manger and EAT were the key performers in the food-focussed segment of the market.

In Continental Europe, France, Italy and Belgium remain underdeveloped, with the public sticking to their traditional coffee drinking habits.

But other countries including Germany, Republic of Ireland, The Netherlands, Spain, Sweden and Switzerland are poised for substantial growth, said the report authors.

The study found the key European players were Starbucks Coffee, Costa Coffee, Segafredo Zanetti, Caffe Ritazza, Caffè Nero and Café Nescafe.

Retailers which were found to have developed strong branded coffee concepts were Tchibo, Marks and Spencer and Hema.

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By Emily Manson

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