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Coffee shop spend to top £4 billion but growth slows

Spending at coffee shops is at an all-time high with sales this year set to top £4 billion, according to Mintel research.

But while coffee shop sales continue to thrive, annual growth has slowed from an impressive 9% in 2015 when the market was worth £3 billion to a respectable 3% in 2019 when it was valued at £3.9 billion.

Facing competition at every turn, a quarter (26%) of Brits buy hot drinks from fast food chains such as McDonald’s, while one in five (22%) buy from a supermarket/store cafe such as Tesco or Ikea.

Fighting its corner, one in six (16%) buy their hot drinks from traditional cafes. Overall, 19% of Brits have not bought a hot drink outside of the home in the last three months.

While coffee (80%) is by far the most popular hot drink purchased out-of-home, tea has seen something of a resurgence as of late. According to Mintel research, currently, 43% of consumers who buy hot drinks out of home drink tea, compared to 39% a year ago.

Millennials are Britain's biggest out-of-home tea drinkers (50%).

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