UK Coffee Market

UK Coffee Market Overview:

The UK coffee market size reached USD 8,814.5 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 10,892.6 Million by 2033, exhibiting a growth rate (CAGR) of 2.38% during 2025-2033. The market is driven by the rising number of quick service restaurants (QSRs) that offer an extra distribution route for coffee items, along with the burgeoning retail sector that can support a wide range of coffee goods, including premium blends, ready-to-drink (RTD) beverages, and coffee pods. In the UK, around 98 Million cups of coffee are consumed each day.

UK Coffee Market Trends:

Increasing Number of Quick Service Restaurants (QSRs)

The IMARC Group report shows the United Kingdom quick service restaurant market value was USD 32.0 Billion in 2023. Coffee is integrated into the menu items of QSRs, which exposes it to more consumers. Coffee is made easily and conveniently available at such locations, which encourages repeated usage, thereby generating higher overall coffee sales. Coffee becomes normalized and promoted through the presence in QSR menus. This also helps in the establishment of a culture of coffee, whereby consumers increasingly consider coffee as a daily staple. To be competitive and attract consumers, QSRs tend to innovate their coffee offerings, offering new tastes, blends, and brewing methods. This innovation can potentially inspire consumer interest and enthusiasm in the UK coffee market share to try new coffee offerings. The convenience of accessing coffee in QSRs is consistent with prevailing customer expectations of easy and convenient food and beverage. The convenience aspect can mean more impulse purchases and constant use of coffee. Coffee companies tend to collaborate with QSRs to introduce their products, which increases the brand's visibility and credibility. Such collaborations can result in co-branded marketing and distinctive blends, enhancing coffee sales and market visibility.

Thriving Retail Sector

The burgeoning retail sector in the country means that more shops, such as supermarkets, convenience stores, and specialty merchants, are offering coffee items. This increased availability leads to better coffee sales since customers have more alternatives for purchasing their favored coffee brands and products. A robust retail sector enables a diverse choice of coffee products, including premium blends, ready-to-drink (RTD) drinks, and coffee pods. Retailers are more likely to provide new and inventive coffee goods to meet consumer demand, accelerating the growth of the coffee market. With a thriving retail sector, coffee goods are becoming more accessible to customers. Increased retail presence, whether in physical stores or online, makes it easier for customers to purchase coffee, which contributes to increased consumption. Increased retail presence, whether in physical stores or online, makes it easier for customers to purchase coffee, which contributes to increased consumption. Retailers routinely engage in marketing and promotional initiatives to boost coffee sales. This includes discounts, special offers, and loyalty programs that may encourage customers to make repeat purchases. Successful retail operations attract more foot traffic, which may include customers searching for coffee. High-traffic locations in retail spaces may lead to higher impulsive purchases of coffee and related items. As per the IMARC Group’s report, the UK coffee market size 2024 is expected to reflect the impact of retail growth and consumer convenience trends. The United Kingdom retail market is projected to exhibit a growth rate (CAGR) of 4.40% during 2024–2032.

Smart Tech Reshaping Coffee Retail in the UK

UK coffee shops are turning to automation and digital technology to change the way they engage with consumers. Self-service espresso machines, app-based ordering systems, and AI-powered recommendation technologies are gaining popularity. Chains and independents alike are using smart brewing equipment to reduce wait times, maintain quality, and customize each order. Mobile reward programs and touch-screen kiosks are transforming the way customers interact with cafés. It's more than just speed and economy; it's about meeting rising expectations. With rising labor costs and stiff competition, businesses are turning to technology to stay competitive. The boundary between online and offline coffee experiences is blurring, and today's customers demand more than just great coffee; they want fast, seamless, and customized service. These shifts reflect key developments noted in the recent UK coffee market analysis.

More UK Consumers Choosing to Brew at Home

More UK coffee drinkers are opting to create great beverages at home. Sales of high-end equipment, fresh beans, and grind-on-demand instruments are increasing. Nespresso, Sage, and De'Longhi are popular among consumers who desire barista-level results without leaving their homes. Lockdowns prompted this transition, but the pattern has persisted. Subscriptions for beans and pods provide variety and convenience, allowing you to forgo the daily café trip. People are saving money while having greater control over what they brew. Coffee shops are still popular for social gatherings, but the daily solo coffee run is losing momentum. This transformation is forcing cafés to discover new strategies to remain relevant and entice consumers back, particularly as the UK coffee market size 2025 is projected to reflect evolving consumption habits.

UK Coffee Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on source, type, and process.

Source Insights:

• Arabica
• Robusta

The report has provided a detailed breakup and analysis of the market based on the source. This includes arabica and robusta.

Type Insights:

• Instant Coffee
• Ground Coffee
• Whole Bean
• Others

A detailed breakup and analysis of the market based on the type have also been provided in the report. This includes instant coffee, ground coffee, whole bean, and others.

Process Insights:

• Caffeinated
• Decaffeinated

The report has provided a detailed breakup and analysis of the market based on the process. This includes caffeinated and decaffeinated.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UK Coffee Market News:

• July 2025: Costa Coffee reopened its remodeled store in Kettering Retail Park, with a modern, inviting design focused on boosting customer comfort and service. The renovation incorporates ambient lighting, a variety of sitting options, and coffee-themed artwork. This move represents Costa's continuous investment in the UK market, confirming its commitment to high-quality coffee and improving in-store experiences for local communities, solitary consumers, distant professionals, and social visits alike.
• April 2025: Nescafé debuted its new Espresso Concentrated variety in the United Kingdom, capitalising on the country's expanding coffee habit. The UK was formerly a tea stronghold, but currently has more frequent coffee drinkers (63%) than tea drinkers (59%). This device enables customers to quickly produce iced lattes or Americanos at home, indicating a desire for individualized, café-style drinks. Nescafé is still the best-selling coffee brand in the United Kingdom, and its advantage in the cold coffee sector is growing.
• December 2023: Bellwether Coffee announced its expansion into the European market with its first roaster installation in collaboration with Hagen, London. Hagen has partnered with Bellwether Coffee to roast their coffee blends in-house on the all-electric and ventless machine while reducing their carbon footprint.
• February 2024: Costa Coffee and Sainsbury’s announced about their new collaboration, aimed at providing a fantastic cafe experience for customers across the UK.

UK Coffee Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK coffee market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK coffee market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK coffee industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.