UK Coffee Market Expands Despite Rising Costs

The UK’s branded coffee shop market continues to grow despite economic pressures, according to Project Café UK 2025, the latest report from Allegra World Coffee Portal. The annual study provides an in-depth analysis of the evolving coffee sector, highlighting key trends, challenges, and consumer behaviors.

The total number of branded coffee shop outlets has increased 5.2% year-on-year, reaching 11,456 locations, with 6,306 coffee-focused and 5,150 food-focused venues. The UK’s branded coffee shop sector is now valued at £6.1 billion, reflecting an 8.4% annual increase, driven by steady consumer demand and continued brand expansion.

Costa Coffee remains the UK’s largest chain with 2,671 outlets, followed closely by Greggs with 2,610 locations, and Starbucks with 1,354 stores. Despite a competitive market, rising costs have pushed coffee prices higher, with the average price of a 12oz latte now at £3.64, up 18p from the previous year. While affordability concerns grow, demand for specialty coffee remains strong, reinforcing the UK’s deep-rooted coffee culture.

Project Café UK 2025 draws insights from over 50,000 consumer surveys and 100+ industry expert interviews, analyzing pricing trends, market strategies, and retail dynamics. The report serves as a key resource for industry stakeholders, outlining opportunities and challenges shaping the future of the UK coffee sector.

Despite inflationary pressures, the UK coffee market remains resilient, adapting to shifting consumer preferences, digital innovation, and sustainability demands. As the sector evolves, Project Café UK 2025 reaffirms its strength as a cornerstone of British high streets and daily life.