Coffee shop boom sets sales on course to pass £4 billion

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Two-thirds of all Britons visited a coffee shop in recent months, with sales forecast to jump 29% over the next five years, figures suggest.

The UK coffee shop market has enjoyed its biggest period of growth since 2008, with the market rising by 37% over the past five years, up from £2.4 billion in 2011 to £3.4 billion last year, according to analysts Mintel.

Sales soared by 10.4% between 2015 and 2016 - the biggest year-on-year boost in the past five years - and are forecast to rise a further 29% to £4.3 billion over the next five years.

The survey also found almost nine in 10 coffee drinkers (87%) tried to recycle their cups, with 58% saying they would like coffee shops to offer a discount to customers who used their own travel mugs.

Some 40% said they did not mind being charged more for hot drinks served in 100% recyclable coffee cups and 30% would prefer to pay for filtered water instead of buying bottled water.

Mintel said 65% of all Britons visited a coffee shop between August and October and just 19% of consumers did not drink tea, coffee or other hot drinks out of the home.

Mintel analyst Trish Caddy said: “Britain’s appetite for coffee shops continues.

“Much of the growth we’ve seen in recent years is driven by habitual coffee drinkers and the continually increasing number of coffee retailers that are now ubiquitous on British high street.

“The concerted efforts of coffee shops to cut down on coffee cup waste, following the recent documentary Hugh’s War on Waste, puts them at a competitive advantage by highlighting the fact that the sector as a whole feels obliged to be more ethical.

“Recycling companies and packaging suppliers are making inroads by innovating in systems to recover and recycle existing materials, such as placing recycling bins in branded coffee shop chains as a collection point.”

* Mintel questioned 2,000 internet users aged 16 and over.

Carl DAmmassa, Group Managing Director  Business Finance, Aldermore

Aldermore supports more than £1bn of asset finance to UK businesses in 2017