Coffee Shop Sector Expected to Reach 16.5bn Turnover BY 2020!

Allegra Project Café 2015 UK was put together in an attempt to help industry stakeholders and investors understand the social and economic contributions of the branded coffee industry. Referred to as the ‘Bible’ of the Coffee Shop industry, the reports are swiftly becoming a must have for all Coffee Shop Owners. Hence, why a detailed PDF report of the findings cost £4,500.

In today’s short article, I look at the findings of the 21,839 online surveys which were carried out back in December, exploring where the coffee industry is now and where it’s anticipated to be in 2020.

Coffee Sector 2014

• Total Outlets in the UK: 18,832
• Top Coffee Shop Brand: Costa Coffee (1,821 Outlets)
• Leading Brand (Turnover): Costa Coffee (Estimated £878m)
• Consumption: Estimated 2 Billion coffees are drunk in the UK outside of the home.
• Sector Turnover: 7.2 Billion

Estimated Growth by 2020

• Total Outlets in the UK: 27,000
• Sector Turnover: 16.5 Billion

The above stats didn’t surprise me too much if I am to be completely honest. As you meander through a local high street nowadays you come across a lot more bookmakers (something for another day) and an abundance of Coffee Shops.

Are Non specialist coffee producers taking over the branded coffee shops in growth?

The branded coffee chain segment recorded £2.9 billion turnover across 5,781 outlets, delivering sales growth of 11.9% and outlet growth of 4.9%, adding 271 stores during 2014.

After 16 years of sizable progression, the coffee shop sector continues to be one of the most fruitful in the UK economy. Costa Coffee (1,821 outlets), Starbucks Coffee Company (824) and Caffè Nero (590) remain the UK’s leading brands with a combined share of 56% of the branded chain market by outlet numbers.

Market leader Costa added 151 UK outlets and achieved 15% sales growth in calendar 2014. The non-specialist sector, including pubs, fast food operators, supermarkets and retail stores, has outpaced branded chains with outlet growth of 14.5% to reach 7,017 establishments with a strong coffee range.

Allegra Group managing director Jeffrey Young said: “The UK consumer increasingly appreciates a quality cup of coffee and operators must continue to deliver innovation, fantastic quality while genuinely engaging with customers in order to stay ahead of the curve.”

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