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Brits and Coffee Shops
14/3/01



The UK is continuing to enjoy a booming coffee shop culture, with almost 75% of adults now drinking coffee out of home according to a recently released research report from Mintel. The new data also reveals the prevalence of coffee shops, as it is estimated there is a branded coffee shop in the vicinity of 86% of all adults.

Mintel’s report contains other headline coffee findings including the facts that:



  • Regionally, those in Scotland are least likely to drink coffee out of home
  • In-home coffee drinking increases with age and affluence
  • Those most likely to visit branded coffee shops are based in London (26% of all adults)
  • Those visiting branded coffee shops at a travel location account for only 12% of all adults
  • Travel coffee shop usage also peaks among those based in London.


The report continues to suggest that visiting a coffee shop is largely thought of as a leisure pursuit, with just 7% of adults actually visiting one during the working day. Consumers do show strong preferences in terms of flavours and types. In terms of coffee brought in coffee shops and restaurants, cappuccino is the drink of choice of nearly 50% of consumers, followed by filter coffee at around 25%.

However, all is not rosy in the marketplace. Familiarity with the coffee shop has led to a more critical attitude among consumers of the product. The research shows that consumers are becoming more price conscious, with one in four adults believing coffee is expensive (a rise of three percentage points over comparable 1999 figures). While 17% of adults believe that coffee shops serve delicious coffee, this level has fallen from 22% in 1999.

The report identifies a number of other issues which could potentially upset the balance of the currently successful coffee shop format. Although the demand for fair-trade coffee is currently low (some 8% of the total), and little importance is attached to it by the chains, the product does have the potential to overturn bigger brands. Additionally, juice bars are the next big American import due to hit British shores. The American juice market is currently worth over $3 billion, and whilst the British market is currently embryonic, overseas operators are currently seeking to enter the UK market. Mintel’s report concludes with the forecast that the coffee bar market will probably double in size over the next five years. An expansion of the operators away from central London premises is highly likely, along with a growing differentiation between different types of coffee bars. Mintel also questions whether the coffee shop culture will be as successful in cities outside of London given its capital-bias to date. The report’s research was conducted on a sample of 1,593 adults interviewed during early 2001.