UK consumers continue to cough up for coffee

The rapid growth of the UK coffee market continued this year, with sector turnover hitting a new high of £1.1b.

A report by market analysts Allegra Strategies found the coffee-bar market, dominated by Starbucks, Costa Coffee and Caffè Nero, had grown in excess of 10% in 2005 and remained "far from saturation".

There are currently 8,779 outlets, including chains and quality independents in the sector, and Allegra said unit growth rate would be 4.1% over the next three years.

By 2008/09 branded chains will account for 35% of the market.

Starbucks remained the most visited and recognised coffee chain, while Caffè Nero was favourite for coffee quality, atmosphere and service, according to a poll of 7,596 customers.

Caffè Nero chief executive Gerry Ford said: "It's particularly pleasing to have maintained these exceptional levels of quality during a period of rapid growth for our business."

Costa Coffee was the fasting-growing operator, with 63 outlets added to its portfolio in the past year.

Overall, cappuccinos and lattes remain the most popular varieties, being drunk regularly by almost half of visitors (46.8%).

By Emily Manson

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