The European branded coffee shop market, comprising 25 countries, grew by an estimated 6.4 percent through 2017, according to the annual market research report from Allegra’s World Coffee Portal.
The growth average is similar to last year’s number, while the fastest coffee shop retail growth was found in the UK, Turkey and Russia. According to Allegra’s research, UK-based Costa Coffee remains the largest chain in Europe, adding 243 stores in the past 12 months to bring its total to 2,755 outlets. United States-based Starbucks follows closely behind with 2,406 outlets, including 251 openings in the past 12 months.
Allegra says all but four of the 25 European countries researched have experienced coffee retail expansion, and 18 of the countries have displayed growth of 3 percent or higher. The UK remains Europe’s most mature coffee retail market, with 643 new shops in the past 12 months bringing its total to 7,421. By comparison, Allegra’s most recent research in the United States saw 3.6 percent growth in 2017 to approximately 34,000 branded coffee shops.
In both reports, Allegra cited the influence of the “third wave” movement as helping to guide retail trends, while providing the greatest opportunities for growth.
“The influential ‘third wave’ artisan scene is growing across Europe and is already established in the more dynamic cities in countries such as UK, Russia, Nordics and the Netherlands,” the group stated in the announcement of the report, called Project Café2018 Europe. “Successful branded chains are adapting to this influence, invigorating their brands with new in-store design, single origin coffee and freshly prepared food offerings. The report observes that those markets which have yet to embrace this trend are starting to fall behind in terms of outlet growth compared with the rest of Europe.”
Nick Brown is the editor of Daily Coffee News by Roast Magazine.
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