On the boil: Continued growth in demand for high-quality coffee has supported revenue expansion

The Cafes and Coffee Shops industry includes all specialist unlicensed establishments that focus on the sale of coffee, in addition to other hot and cold drinks or light snacks. The performance of the industry is driven by both economic and social factors, including growth in real household disposable income, preferences for cafes over alternative social venues, and greater consumer interest in coffee blends and origins. The appeal of coffee has become more widespread in recent years, and has become a daily part of many consumers' lives. Over the five years through 2018-19, industry revenue is expected to grow at a compound annual rate of 6.3%, including a forecast rise of 3% in the current year, to reach £6.5 billion...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Increasing external competition is expected to constrain growth over the next five years
  • The introduction of the National Living Wage has caused average wages to rise over the past five years
  • Growing competition from external firms like McDonald’s is expected to increase pricing pressures
  • Industry Report - Industry Analysis Chapter

    Coffee culture in the United Kingdom has developed rapidly over the past five years, to the benefit of specialist cafes and coffee shops. The UK retail coffee market has grown strongly for over the decade; according to the British Coffee Association, Britons consumed 95 million cups of coffee per day in 2018, up from 70 million cups per day in 2008, allowing coffee chains and independent operators to spread across the United Kingdom. IBISWorld estimates that industry revenue will increase at a compound annual rate of 6.3% over the five years through 2018-19 to reach £6.5 billion. This includes forecast growth of 3% in the current year, representing a slowdown on previous years as consumer uncertainty is expected to affect discretionary expenditure. Des...purchase to read more.

    Additional Insights for the Cafes & Coffee Shops Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cafes & Coffee Shops Industry are

  • Establishment of brand names
  • Supply contracts in place for key inputs
  • Attractive product presentation
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Household expenditure on food and non-alcoholic beverages in the Cafes & Coffee Shops industry impact industry performance..

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    What's in this report

    What is the Cafes & Coffee Shops Industry?

    Businesses in this industry include all specialist unlicensed establishments that provide coffee and snacks to customers.

    Industry Products
  • Coffee
  • Food
  • Other beverages
  • Industry Activities
  • coffee
  • food
  • non-alcoholic beverages
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Household expenditure on food and non-alcoholic beverages
  • National minimum wage
  • World price of coffee

  • Current Performance
  • Premium growth
  • Grinding away
  • Going to waste
  • Chart: Revenue Growth

  • Industry Outlook
  • Competition heats up
  • Becoming bitter
  • Home brew
  • Table: Cafes & Coffee Shops Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cafes & Coffee Shops Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Bread & Bakery Goods Production
  • Coffee Processing
  • Coffee, Tea & Spices Wholesaling
  • Dairy Product, Egg & Edible Oil Wholesaling
  • Juice, Mineral Water & Soft Drink Wholesaling
  • Tea Processing

  • Products & Services
  • Coffee
  • Food
  • Other beverages
  • Chart: Cafes & Coffee Shops Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Fifth income quintile
  • Fourth income quintile
  • Third income quintile
  • Second income quintile
  • First income quintile
  • Chart: Major Market Segmentation for the Cafes & Coffee Shops Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRentDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Cafes & Coffee Shops

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cafes & Coffee Shops Industry

  • Industry Globalization
    Costa Ltd, Pret A Manger (Europe) Ltd, Starbucks Coffee Company (UK) Limited,
  • Table: Costa Ltd - financial performance
  • Table: Pret A Manger (Europe) Ltd - financial performance
  • Table: Starbucks Coffee Company (UK) Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Cafes & Coffee Shops Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Cafes & Coffee Shops Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Coffee or food made using high-quality ingredients.
  • Merchandiser
  • Machine which displays food and may be heated or cooled to maintain food at the appropriate temperature.
  • Roastery
  • A facility where coffee beans are roasted and processed.
  • What Our Customers Say

    Why buy this report?

    The Cafes & Coffee Shops market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Cafes & Coffee Shops:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Cafes & Coffee Shops market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Cafes & Coffee Shops, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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