UK Home Coffee Market Booms in 2025: New Report Highlights Major Growth Opportunities

As economic pressures reshape consumer habits, a new report by Allegra World Coffee Portal reveals that the UK’s home coffee market is experiencing a dramatic rise in popularity—opening fresh opportunities for brands and retailers to capture growing demand for premium, at-home coffee experiences.

Titled “The Coffee At Home Report UK 2025,” the strategic report offers in-depth analysis of consumer behavior, product preferences, and market trends shaping this fast-growing segment. With rising prices in cafés and coffee shops, more Britons are turning to the comfort of their kitchens to recreate barista-style beverages—ushering in a new era for home coffee innovation.

Cost of Living Reshaping Habits

The report highlights that cost of living concerns are having a profound impact on how UK consumers engage with coffee. Among the key changes:

1. A significant share of consumers are drinking more coffee at home as a cost-effective alternative to coffee shop visits.

2. Others have reduced their coffee consumption overall.

3. Many have switched to cheaper coffee brands to manage household budgets.

These shifts reflect not just financial caution but a broader transformation in how consumers perceive value, convenience, and quality in their daily coffee rituals.

£6.42 – The Weekly Coffee Budget

On average, UK households are now spending £6.42 per week on coffee prepared at home, a figure that underscores both the scale and sustainability of this growing market. This trend is reinforced by the fact that 58.1% of consumers have actively tried to recreate their favorite coffee shop beverages at home—further blurring the line between café and kitchen.

The Home Coffee Toolkit: Instant, Ground, and Capsules

Consumer preference remains diverse, but the report reveals:

1. Instant coffee (jar/tin) continues to dominate as the most popular format.

2. Ground coffee ranks second, appealing to those with more advanced brewing setups.

3. Coffee pods and capsules hold third place, offering convenience and consistency.

This variety points to a robust market for both entry-level and premium offerings, allowing brands to cater to a full spectrum of coffee drinkers.

Best Value Devices: The Rise of the French Press

From an equipment perspective, the report identifies which devices are seen as the best value for money:

1. French press tops the list for its affordability and simplicity.

2. Filter/drip coffee machines are a close second.

3. Manual pour-over devices round out the top three, favored by coffee aficionados seeking control and flavor precision.

Despite their reputation, espresso machines are not viewed as essential to high-quality home brewing, with 64% of industry experts disagreeing that they are a must-have—challenging traditional assumptions about coffee excellence.

Data-Driven Insights for Strategic Action

Backed by more than 2,000 online consumer surveys and over 80 expert interviews, the 140-page report offers a comprehensive guide for companies looking to navigate and succeed in this evolving market. It includes:

• Full market sizing for coffee machines by segment: capsule, filter, and espresso

• Profiles of major equipment brands, coffee retailers, and subscription services

• Analysis of technological innovations and competitive strategies

• Exploration of consumer motivations and purchasing behaviors

The findings serve as a powerful resource for brands, retailers, and manufacturers aiming to tailor their offerings to meet the growing sophistication of the UK home coffee consumer.

Strategic Outlook

“The Coffee At Home Report UK 2025” is part of Allegra’s broader effort to look beyond branded chains and explore the full coffee ecosystem—from automation and product development to independent roasters and emerging retail models.

As coffee shop prices continue to rise and consumers become more selective about how and where they enjoy their coffee, the home is fast becoming the UK’s most competitive coffee frontier. For businesses ready to innovate, the rewards could be significant.