Costa Coffee Launches Report on Changing Coffee Consumption Habits in the UK
Costa Coffee, the nation’s beloved coffee shop, has unveiled ‘Lattenomics’, a comprehensive report examining the evolving coffee consumption trends in the UK. This report delves into the factors influencing these changes and their effects on high street culture and society at large.
Insights from Data and Sales Trends
Utilising sales ratios and aggregated data from every Costa Coffee store and franchise partner over the past two years, the report offers unmatched insights into consumer behaviour in the wake of the pandemic.
Key findings include:
- An increase in the number of coffee shops on high streets and the changing ways consumers utilise them.
- Coffee shops adapting to the surge in hybrid and remote work arrangements.
- Growing consumer expectations for coffee, driving innovation in product offerings.
Coffee as a Cultural Catalyst
Despite recent economic challenges and fluctuating consumer confidence, coffee shops have proven resilient. The total number of coffee shops in the UK rose by 353 in the past year, with market researchers at Allegra projecting over 11,600 coffee retail outlets in the UK by January 2029.
Nick Ridley, Property Director for Costa Coffee, states: “High streets may often be depicted as struggling, but with the right mix of retail and hospitality, they can flourish. Brands like Costa Coffee play a crucial economic and social role.”
Costa Coffee’s data indicates consistent weekend footfall over the last two years, suggesting that weekend patronage remains robust despite cost-of-living pressures. Furthermore, visits to coffee shops after 5 PM have increased, with 5.4% of consumers under 35 frequenting coffee shops in the early evening. This trend coincides with a decline in alcohol consumption among younger consumers, signalling a new role for coffee shops within the evening economy.
Ridley notes, “Coffee shops have the potential to thrive in the early evening space, attracting younger consumers seeking a social experience without alcohol. We can provide a productive, creative, and fun atmosphere for our customers.”
A Convenient Cup
Since the pandemic, on-the-go coffee consumption has surged, driven by the rise of hybrid and remote work. Consequently, the number of Drive-Thru outlets has increased by 15.1% over the past year, with Costa Coffee operating 43% of these locations.
Costa Coffee also boasts over 14,800 self-serve Costa Coffee Express machines across the country, enabling consumers to enjoy an authentic coffee experience at their convenience.
Sales data reveals that 20% of consumers under 35 purchase ready-to-drink (RTD) coffee, compared to just 6% of those over 55. Andrew Miller, Director of Costa Express & Costa Corporate Partnerships, states: “While many customers still prefer to visit stores, we recognise the demand for speed and convenience. Our Costa Express machines cater to those who are time-pressed while ensuring quality and customisation.”
The Costa-misation of Coffee
Although two-thirds of UK consumers prefer classic lattes or cappuccinos, they are also experimenting with their coffee choices. Data indicates that 36.4% of UK consumers personalise their drinks according to their milk preferences, with oat milk leading as the favourite at 31.4%. Flavour trends continue to reshape the market, with 40% of customers opting for flavour syrups, particularly among younger generations.
Sandra Ferreira, Beverage Innovation Director at Costa Coffee, remarks: “People seek multi-sensory experiences with their drinks, leading to increased demand for textures and innovative ingredients.”
The findings from the Lattenomics report highlight significant socio-economic changes in the UK, underscoring the necessity for the industry to innovate continually.
Ferreira emphasizes, As a key player on high streets, we are dedicated to providing customers with compelling reasons to come back.
