Growing Sales For UK Coffee Shops
It’s no secret that Brits have fully embraced the coffee shop culture, but new research shows that the market has grown significantly since 2011, experiencing its strongest growth since 2008.
A report by Mintel found that the UK’s coffee shop market was worth £3.4 billion in 2016, a 37 per cent increase on its value (£2.4 billion) five years earlier. And there is no sign that it’s going to slow down either, with sales climbing an impressive 10.4 per cent between 2015 and 2016.
Mintel noted that this is the largest year-on-year increase experienced in the past five years.
Looking forward, the organisation is predicting further growth for the sector, with sales expected to increase by a further 29 per cent in the coming five years to hit £4.3 billion.
Food service analyst at the company Trish Caddy commented: “Much of the growth we’ve seen in recent years is driven by habitual coffee drinkers and the continually increasing number of coffee retailers that are now ubiquitous on British high streets.”
It’s little surprise that the age group that visits coffee shops most frequently is those between 16 and 24 years old, with a whopping 73 per cent of people in this demographic having been to a coffee shop in the past three months.
In fact, 65 per cent of all Brits have visited a coffee shop in the past three months, which is good news for coffee manufacturers, although Mintel notes that there’s increasing competition from non-specialist coffee retailers.
Ms Caddy suggested that barista-style coffee shops should be aware of the growing competition from the likes of bakeries, pub chains and fast food outlets, which are all jostling to grab some of this business.
She noted that they’re able to compete “in terms of price, convenience and even geographical reach”.
One way for specialist coffee shops to win back custom could be to look at how to make their operations as sustainable as possible – and how they can help their customers make environmentally friendly choices.
The Mintel survey also found that 87 per cent of coffee drinkers try to put their used coffee cups in recycling bins, while 58 per cent would like to see coffee shops offering discounts to those who bring in their own travel mugs.
In addition, 40 per cent of consumers would be happy to pay a bit more for their brew if it meant their drink was served in 100 per cent recyclable coffee cups.
Our love affair with coffee means that more and more companies are trying to get in on the act and that there are now a multitude of ways to enjoy a caffeine hit aside from with a traditional cup of coffee.
The Daily Mail recently highlighted some interesting coffee trends, including a coffee spread that you can put on your toast and using cold brew coffee to add an extra kick to drinks such as the classic gin and tonic. Coffee and alcohol seems to be quite a popular theme, with the newspaper also pointing out the trend among specialist brewers to mix coffee beans with beer.