Coffee shops stir £7.9bn into market as café culture dominates

Britons spent £7.9bn in coffee shops this year, with sales across the market 10pc higher than last year as café culture tightened its clutch on the UK.

The number of coffee shops broke past 20,000 in 2015, driven by a 12pc increase in the number of branded coffee chains, according to the Project Cafe 2016 UK report from Allegra World Coffee Portal.

Costa, Starbucks and Caffè Nero, which together control more than half of the branded coffee shop market, led the sector's 15pc growth to £3.3bn in annual turnover.

These high street brands have 1,992, 849 and 620 outlets respectively.

"When we started writing about the coffee market in 1999, we were told that the market had reached saturation – the mug is already full," said Jeffrey Young, MD of the Allegra Group, which delivers insights and events for the food and drink market.

"Since then, when Starbucks had only just entered the UK and Costa had about 100 outlets, the market has grown sevenfold and could double over the next decade."

Watch the coffee shop growth from 2010 to 2015

The non-specialist sector, from pubs to supermarkets, has also increased its emphasis on quality coffee in recent years as consumers' appetite for the beverage and for the relaxed, social environment of coffee shops has grown.

There are now close to 8,000 non-specialist outlets in the UK, accounting for 39pc of the total market, compared to branded coffee shops' 31pc and independent cafés' 30pc.

"Britain is becoming a nation of coffee connoisseurs. Coffee is becoming like wine – people want to learn how to taste it, where it's from, how its made," said Mr Young. "The thirst and the desire to have better quality coffee is growing."

The total UK coffee shop market is on track to exceed 30,000 outlets by 2025 – an increase of almost half – and to break through £15bn in sales over the next decade.

Mr Young added: "With a market now valued at £7.9bn, no one can ignore the fact that coffee is big business."