UK independent coffee shops trading strongly on quality and authenticity

Infographic by World Coffee Portal

• UK independent coffee shop market achieved 4.1% sales growth to reach £4.6bn over the last 12 months   

• The total UK independent coffee shop market grew 2.2% by outlets to reach 12,212 stores     

• Nearly three quarters of independent operators reported increased sales last year, with 30% reporting over 5% growth 

• World Coffee Portal forecasts total independent coffee shop sales will surpass £4.8bn in 2025 and £5.6bn by February 2029, at 3.9% CAGR 
   

UK independent coffee shops weather economic headwinds to post steady growth 

The UK’s independent coffee shop market grew by 2.2% over the last 12 months to reach an estimated 12,212 outlets. World Coffee Portal research also indicates the overall value of the UK independent coffee shop market withstood rising costs and tightened consumer spend to grow 4% during the period to £4.6bn. 
 

The independent coffee shop segment is expected to record further outlet and sales growth this year. World Coffee Portal forecasts the market will surpass 12,400 outlets across the next 12 months and achieve 4.1% sales growth to reach $4.8bn in 2025. 

High-quality beverages and personalised service key drivers of customer retention 

The Independents Report UK 2024 reveals beverage quality, personalised service, authenticity and localness are key drivers of customer retention for UK independent coffee shops. These factors are also crucial differentiators between independent coffee shops and branded coffee chain competitors, the report reveals.  
 

However, while industry leaders view specialty coffee as a key indicator of a higher-quality coffee shop, the importance of specialty among UK coffee consumers surveyed by World Coffee Portal has fallen year-on-year. 

Modest growth forecast amid challenging economic backdrop 

Industry leaders are evenly split in their assessment of current trading conditions – with the cost-of-living crisis a key concern. However, nearly twice as many leaders surveyed by World Coffee Portal believe trading conditions will improve for independent coffee shops over the next 12 months rather than anticipating a deterioration of sales.   
 

World Coffee Portal forecasts the total UK independent coffee shop market will exceed 12,400 outlets in the next 12 months and reach 13,200 stores in 2029. Total sales are forecast to surpass £4.8bn next year and £5.6bn by February 2029. 

Commenting on the report, Allegra Group Founder and CEO, Jeffrey Young said: “Despite the continued growth of chain concepts in the UK, consumers are eager to ‘support their local’ in these challenging economic times.” 
 

The Independents Report UK 2024 is World Coffee Portal's strategic analysis of the UK's innovative independent operator market. The report includes market sizing, consumer research, industry consultations and strategic analysis of the latest industry dynamics.

To purchase the report or to make an enquiry, contact: 

Ruth Thompson, Head of Partnerships 
rthompson@allegra.co.uk 
+44(0)20 7691 8800

Alex Goscomb, Business Development Director
agoscomb@allegra.co.uk 
+44(0)20 7691 8800