The UK coffee shop market grew by 6% in outlets and 12% in turnover to reach £8.9bn in 2016, according to the Allegra World Coffee Portal. Its Project Café 2017 UK report reveals the branded coffee shop chain sector contributed to the total market growth, adding 445 new stores to reach around 6,940 outlets, representing a growth of 6.9%. In total, there are around 22,845 coffee shops in the UK.
Costa, Starbucks and Caffè Nero remain the UK’s leading chains with a 53% outlet share of the branded market. Small and medium-sized boutique chains such as Coffee#1 are gaining momentum, the report found. It also reported increased merger and acquisition activity, including Tchibo’s acquisition of Matthew Algie.