Coffee in the United Kingdom

PROSPECTS

Coffee continues to experience premiumisation

Fresh coffee continued to experience strong premiumisation in the UK, and is expected to lead growth of the category over the forecast period. Due to the rising number of coffee drinkers, many companies have launched premium ranges reflecting consumers’ increasing awareness of and interest in high-quality coffee.

Coffee-to-go consumption expected to record a strong performance

British consumers, with their busier lifestyles, look for quick solutions for enjoying quality coffee without compromising its fresh taste. This continuing desire for rapid options leads the growth of coffee-to-go consumption.

Compatible coffee pods to benefit fresh ground coffee pods

The premiumisation trend and the rising coffee shop culture have encouraged the growth of fresh ground coffee pods. Specifically, consumers’ desire to recreate the coffee shop experience at home.

COMPETITIVE LANDSCAPE

Carte Noire instant coffee returns

Lavazza Coffee Ltd recorded significant retail current value growth as well as gaining strong value share in 2018. This good performance was due to its instant coffee Lavazza Prontissimo!, and its standard fresh ground coffee range.

The Coca-Cola Co buys Costa

Whitbread sold Britain’s largest coffee chain Costa to The Coca-Cola Co for GBP3.9 billion in 2018.

Nestlé obtains distribution rights to Starbucks’ products

Nestlé UK Ltd continued to lead overall coffee in the UK due to its Nespresso brand in 2018. To take advantage of the growing coffee shop culture that is driving retailing brands’ sales, Nestlé made a deal with Starbucks, allowing it to sell its coffee portfolio outside of the company’s chained coffeehouses across the world in 2018.

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