What are the Latest Trends Driving Growth in UK Coffee Market?

According to the latest research from the British Coffee Association (BCA), the UK coffee market is continuing to grow and evolve.

Nationally, the broader sector contributes around £14 billion to the economy, supports over 430,000 jobs, and generates something in the order of £6 billion in tax revenues.

Coffee matters!

Coffee is certainly established as a part of everyday life for many, but the way consumers enjoy it is changing.  From growing demand among younger consumers to greater interest in specialty coffees and sustainability, several trends are now shaping the industry.

Coffee consumption shows growth

Recent research from the BCA suggests that 103 million cups of coffee are consumed in the UK every day. This figure is up from around 98 million in 2018.

The BCA has also reported that 67% of UK adults drink coffee every day and 29% drink three or more cups a day.

Younger consumers drink more coffee

A change in the demographic of coffee drinkers is a notable development worth thinking about.

According to the BCA's latest research, average daily coffee consumption among 18–34 year-olds has increased by nearly 50% since 2021, rising from 1.3 cups to 1.9 cups per day. This age group now reports higher average consumption than people aged 55 and over.

Younger consumers are also prepared to spend more when purchasing coffee outside the home - an average of £4 versus £3.20.

For coffee shops and cafes, these findings suggest that the consumer base in the UK is becoming increasingly familiar with café culture and is interested in a wider range of coffee experiences.

Specialty coffee and quality

Consumers in the UK now benefit from access to more coffee choices than ever before. Espresso-based drinks such as flat whites and cappuccinos sit alongside filter coffee, cold brew, iced coffee and a growing variety of specialty offerings.

There’s no doubt that the emphasis for many is increasingly placed on quality, freshness and preparation. As equipment plays such a crucial role in achieving both refined results and consistency, there’s a greater interest in:

• Professional espresso machines
• Precision coffee grinders
• On-demand grinding
• Water filtration
• Milk-frothing equipment
• Specialty brewing equipment

Iced coffee and cold Drinks

Coffee is no longer confined to hot drinks.

Cold brew and iced coffees are now hugely popular choices, and coffee menus are broadening as a result.  Research suggests that iced coffee has become a year-round choice rather than being popular only in the summer months.

The trend for diversity delivers sales opportunities to businesses as cafés can appeal to customers throughout the year by offering different flavours and preparation methods.

The popularity of iced coffee is such that it has recently sparked a debate over whether it is acceptable to take such a beverage into a job interview. That debate went viral!

Convenience remains important

While consumers are becoming more interested in coffee quality, convenience remains a priority. People lead busy lives and don’t wish their enjoyment of coffee to come at the expense of their valuable time.

Finding ways to speed up service, offering takeaway options, investing in easy-to-use equipment and automated or semi-automated preparation can all help businesses grow by meeting demand efficiently.

Efficiency is particularly crucial for workplaces, hotels, restaurants and high-volume cafés, where equipment needs to combine quality, speed and reliability.

Coffee equipment is key

As consumers become more knowledgeable about coffee, equipment is increasingly becoming part of the conversation.

A good grinder, for example, can provide more precise control over grind size and dosing.  Water filtration will help to manage the effects of hard water and protect coffee equipment from limescale. Accurate temperature and pressure control contributes to consistent espresso extraction.

For businesses, choosing the right equipment can be about much more than simply making coffee. The right equipment will impact consistency, workflow, maintenance and the quality of the brews.

An increase in the prevalence of bean to cup coffee machines in cafés is a new trend that has been driven by both labour shortages and the need to create more efficient workflows. Advances in technology have ensured that these machines offer improved grinding, extraction and milk texturing.

Sustainability and supply chain resilience

Sustainability is a hot topic and one that is a consideration for a significant portion of consumers.

The British Coffee Association has identified several areas of concern including farmer resilience and livelihoods, deforestation, recycling, coffee pods and the wider circular economy.

For coffee businesses, sustainability cannot be merely a matter of the right packaging. Equipment efficiency, waste reduction, responsible sourcing, reusable products and effective management of coffee grounds are all issues to be explored.

Choice matters

Perhaps the biggest trend right now is the move towards offering greater variety.

Consumers have numerous and diverse choices to explore. BCA research indicates that the ability to customise coffee to individual tastes is one of the factors supporting its growth in popularity.

Functional coffees such as those infused with mushrooms and adaptogens together with blends containing unusual ingredients including ginseng and turmeric have entered the mainstream.

Plant based milks continue to rise in popularity and there has been a reduction in the use of sugar, inspired by a greater awareness of the related health issues. Consumers are looking for transparency regarding the quantities of sugar and sweeteners in speciality coffee products.

Moving forward

Although impacted by wider economic issues, coffee is a market offering the potential for further growth and so will continue to deliver opportunities for businesses.

Those wishing to capitalise on those opportunities will need to ensure that they invest in the right equipment, remain mindful of sustainability and provide a diverse menu for consumers to choose from. Speedy service will also prove crucial.

Consumers have more choices than ever and not just regarding the nature of the drinks they consume. Cafés, coffee shops and bars that fail to offer the full package of benefits may well flounder in the face of the competition.