RESEARCH

The UK Branded Coffee Shop Market

The UK coffee shop market has shown remarkable resilience during recession to reach £1.63 billion in sales in 2009, with sales growth of 6.2% on 2008. Branded coffee chains are expected to outperform the retail sector as café culture becomes more engrained. Consumers did not stop spending, preferring to trade down to lower ticket options rather than give up their coffee treat.

These independent research findings add more weight to the already strong argument for advertising brands through the Tabletalk Media networks that capitalise on the popularity of coffee shops: Coffee Culture, Coffee Republic and Sandwich Bars & Snackeries.

Key Points
• Consumers continue to visit coffee shops despite recession
• 64% of consumers interviewed visit at least once a week
• It is evident that coffee shops are more than just a location to drink and eat as they're important hubs for socialising, relaxing and reading, and a place for business meetings
• Location is still the prime reason for choosing a coffee shop, followed by coffee quality

Outlook
• 2010 is expected to show further growth, as green shoots of recovery are already evident
• The total coffee shop market is forecast to grow by 4.4% per annum by December 2012
• Branded coffee outlets expected to grow 7.0% and increase sales to over £2 billion by 2012
• A new wave of quality independents are driving consumers expectation for quality coffee
• High quality independent coffee shops are exerting a growing influence on branded chains
• High quality ethical coffee and products will be expected, consumers will no longer accept low quality at a higher premium just because it is ethically sourced