UK Coffee Market

UK Coffee Market Overview:

The UK coffee market size reached USD 1.81 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 2.31 Billion by 2032, exhibiting a growth rate (CAGR) of 2.50% during 2024-2032. 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.

UK Coffee Market Trends:

Increasing Number of Quick Service Restaurants (QSRs)

The IMARC Group’s report shows that the United Kingdom quick service restaurant market size reached US$ 32.0 Billion in 2023. QSRs generally have coffee into their menu offerings, which make it more accessible to a wider audience. The convenience and accessibility of coffee at these venues encourages more frequent consumption, resulting in increased overall coffee sales. QSRs' integration of coffee into their menus helps normalize and promote coffee usage. This contributes to the development of a coffee culture, wherein consumers increasingly regard coffee as a daily necessity. To differentiate themselves and attract people, QSRs frequently innovate their coffee offerings, releasing new tastes, blends, and brewing methods. This innovation has the potential to increase customer interest and enthusiasm in the coffee market, encouraging them to try new coffee options.

The convenience of getting coffee from QSRs is consistent with modern customer expectations for quick and easy food and beverage options. This convenience element can lead to more impulse purchases and frequent coffee intake. Coffee brands frequently collaborate with QSRs to promote their products, which can increase brand visibility and credibility. These collaborations can result in co-branded promotions and exclusive blends, increasing 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 greater availability is resulting in higher coffee sales as consumers have more options to acquire their preferred coffee brands and products. A strong retail sector supports a wide range of coffee goods, including premium blends, ready-to-drink (RTD) beverages, and coffee pods. Retailers are more likely to introduce new and innovative coffee items to fulfill consumer demand, thereby propelling the market growth. With a flourishing retail sector, coffee items are more available to consumers. Increased retail presence, whether through physical stores or online platforms, makes it easier for consumers to buy coffee, which is contributing to higher consumption.

Retailers frequently participate in marketing and promotional efforts that increase coffee sales. This includes discounts, special offers, and loyalty programs that might entice customers to make recurring purchases. Successful retail establishments draw increased foot traffic, which may include consumers looking for coffee. High-traffic locations in retail environments can result in more impulse purchases of coffee and associated products. As per the IMARC Group’s report, the United Kingdom retail market is projected to exhibit a growth rate (CAGR) of 4.40% during 2024-2032.

UK Coffee Market News:

• 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 Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. 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 Report Coverage:

Key Questions Answered in This Report:

• How has the UK coffee market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the UK coffee market?
• What is the breakup of the UK coffee market on the basis of source?
• What is the breakup of the UK coffee market on the basis of type?
• What is the breakup of the UK coffee market on the basis of process?
• What are the various stages in the value chain of the UK coffee market? 
• What are the key driving factors and challenges in the UK coffee?
• What is the structure of the UK coffee market and who are the key players?
• What is the degree of competition in the UK coffee market? 

 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 2018-2032.
• 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.