Prevalence of coffee in UK

As a nation, we now consume billions of cups of coffee every year. Today the beverage is drunk by about 80 per cent of the adult population of the country. Indeed, one estimate suggests that Britons drink 77 million cups of coffee a day, more than 28 billion a year. Many of these are consumed 'out of home' and served in a range of formats, from fine dining establishments to pubs, cafes, leisure, vending and the workplace. More than a quarter of those cups of coffee are NÉSCAFÉ®.

 

Populus growth and workplace demand shows that our desire for a cup of coffee remains strong. Research by Mintel suggests that both volume and value sales of coffee have been growing in the 'out of home sector'. Between 2003 and 2005 the amount sold rose by 3 per cent to £680 million, 85 per cent of which was instant coffee. But, so-called premium and speciality brands are seeing even stronger growth, as consumers branch out in to cappuccinos, lattes, mochas and other types of coffee.

 

There is one partner in the industry that stands head and shoulders above all others. Nestlé Professional®, backed by years of experience has listened to its customers' needs and responded to change in consumer demand by introducing its own "lifestyle" ranges, enabling caterers to grow their businesses inline with market demand. It includes a premium range of café-style coffees, including latte, cappuccino, espresso as well as decaff. With sustainability at the forefront of the agenda, the company has nearly 1000 agronomists working worldwide with farmers and in 2006 launched its own Fairtrade certified range, NESCAFÉ® PARTNERS' BLEND®.

 

Out of home trends in coffee consumption

There are some core trends that are influencing the out of home market:

The need to 'raise the bar' on the quality of hot beverages served in the workplace - recognised and trusted consumer brands are preferred [1], generating a feel good factor amongst employees! Celebrating 70 Years in the business, NESCAFÉ® is the largest coffee brand in the UK and market leader in the out of home market, currently enjoying over 82.8%1a market share?

 

We know the market. We take time to learn about our customers. We have access to some of the world's finest quality coffee beans...And, we have spent the last 70 years developing products, formats and solutions to meet industry trends and deliver growth for our customers.

 

Take NESCAFÉ® &GO for example, it provides great coffee for consumers 'on the go'.  Our Café Style range delivers a great tasting cappuccino, latte or mocha in an instant and we have successfully taken a comparable high street coffee experience to the workplace with NESCAFÉ® ACCOLADE®.

 

Growth of high street coffee shops

Increasing numbers of High Street coffee shops have driven growth within the coffee market. Currently estimated to be £1.3bn turnover, it is set to rise to £2.5bn within a decade [2]. With increasing numbers of places to enjoy a coffee has come a whopping increase in the variety of coffees that are available - the cappuccino, americano and latte have been joined by the mocha, the macchiato and the frappuccino - and all accompanied by a whole new language of tall, skinny, syrup and sprinkles.

 

Indeed, latte's are preferred over cappuccino's in out of home coffee shops, cappuccino is now ordered four times more frequently than filter coffee [2]. Café style coffees are now the norm. Consumers expect the choice, quality and speed of service from wherever they happen to be ordering a coffee - and that has implications for all food and beverage providers. If you can't meet customers' expectations, the customer will go to those who can - the competition!

 

David and Goliath - the coffee conundrum!

 

Between them, branded coffee chains now have almost 3,000 outlets, a figure that is expected to grow still further to 4000 by 2010 [2].  While, it's recognised that the chains are driving overall growth in the market, the number of independent outlets is also expected to grow at 4.2% per year [2], showing steady popularity and support for local business.

 

Coffee remains a growing opportunity for the Out Of Home (OOH) market - for everyone, whether in a chain or an independent business. Defined not only by coffee shops but also pubs, hotels, convenience stores and business and industry, the OOH market accounted for 11,730 million cups of coffee in 2007 [3]. All current indications - along with the growth of physical number of outlets - point towards further increases in coffee consumption in the coming years.

 

Making more money from hot beverages

We've established that the market is growing.
So...how can we help you?
We want to work in partnership to find the right products and solutions for your business and your customers. It's also about looking ahead to future trends and coming up with new ideas. But what about TODAY?

 

We've got loads of ideas! Have a look at some of them and if you would like to chat further, do send us an email or give us a call!

Regularly update your hot beverage menu - consider regional products and suppliers to make a point of difference