Latest data from Mintel confirms that Brits are spending billions annually on their daily dose of caffeine.
According to its research, spending at coffee shops is at an all-time high, with sales this year likely to top £4bn.
But while coffee shop sales continue to thrive, annual growth has slowed from 9% in 2015, when the market was worth £3bn, to 3% in 2019, when it was valued at £3.9bn.
Facing competition at every turn, a quarter (26%) of Brits buy hot drinks from fast-food chains such as McDonald’s, while one in five (22%) buy from a supermarket/store cafe such as Tesco or Ikea. Meanwhile, one in six (16%) buy their hot drinks from traditional cafes. Overall, 19% of Brits have not bought a hot drink outside of the home in the last three months.
Trish Caddy, Mintel Senior Foodservice Analyst, said: “Coffee shops have enjoyed robust growth in the past five years, benefitting from brands’ ability to meet consumer demand for the convenience of takeaway coffee and emergence of speciality coffee. Continued growth is being boosted by more high street coffee shop brands expanding in the retail, travel, and leisure sectors.
“However, the market continues to face tough competition from non-specialists such as fast food outlets and supermarkets; a situation which is not likely to ease as non-specialists continue focusing on price and convenience. With more food outlets selling low-cost coffee, coffee shops without strong food offerings will fall behind.”
