The UK coffee shop market grew by 7.9% in turnover during 2018, driven by the big brands, according to a new report on the UK café industry.
Allegra World Coffee Portal’s report revealed the total UK coffee shop market is now valued at £10.1bn across 25,483 outlets, following 20 consecutive years of growth.
Branded coffee shops secured robust 8.7% outlet growth in 2018 to reach 8,149 stores.
Costa Coffee, Starbucks and Caffè Nero remain the three largest coffee-focused branded chains in the UK.
Allegra forecasts the UK branded coffee shop market will exceed 10,000 outlets by 2023, with a five-year compound annual growth rate of 5%.
However, most industry leaders said Brexit was negatively impacting trade and creating business uncertainty, with 49% of respondents indicated Brexit was negatively affecting their business, with 46% remaining neutral and 5% reporting a positive impact. Some 69% agreed it was negatively impacting consumer confidence.
Commenting on the research, Allegra ceo Jeffrey Young said: “Twenty years of consecutive growth, in terms of outlets, turnover and like-for-like performance is an impressive feat by this robust segment that has become intrinsic to UK lifestyles.
“More growth will continue, albeit at a slower pace, as the economy is subjected to myriad pressures, including structural retail change, technological development, changing consumer habits and deep uncertainty on the numerous potential outcomes of Brexit.”
No comments yet