Costa Coffee launches 'Lattenomics', a report which takes a
deep dive into the UK's coffee consumption habits – the influences
and impact.
- 51% of consumers voted Costa Coffee as preferred high street
coffee brand.
- Drive-Thru outlets have increased by 15% over last 12
months.
- Consumers twice as likely to customise drinks when ordering
digitally.
LONDON, May 22, 2024
/PRNewswire/ -- Costa Coffee, the Nation's Favourite Coffee Shop*
has launched 'Lattenomics', a report exploring the UK's changing
coffee consumption habits, the influences that shape it, and the
impact on wider high street and societal culture.
Using sales ratios and aggregated data from every Costa Coffee
store and franchise partner over the last 24 months, the report
provides an unparalleled insight into consumer trends in the
post-pandemic era.
The findings reveal:
- An increased presence of coffee shops on our high streets, and
how our use of coffee shops is changing.
- How coffee shops are responding to the rise in hybrid and
remote working.
- Customers want more from their coffee, and how this is driving
innovation.
1.) Coffee as a cultural catalyst
Unlike other hospitality venues, coffee shops have weathered the
storm of weakened consumer confidence and economic turmoil in
recent years. The total number of coffee shops across the UK
grew by 353 in the last 12 months, and market researchers Allegra
predict there will be over 11,600 coffee retail outlets across the
UK by January 2029[1].
Nick Ridley, Property Director
for Costa Coffee says: "High streets are often portrayed as
struggling, but with the right mix of retail and hospitality they
will continue to thrive. That's why brands like Costa Coffee have a
crucial role to play from an economic and a social point of
view".
Costa Coffee data shows consistency in weekend footfall over the
last two years, suggesting that weekend trading remains strong
despite cost-of-living pressures. Footfall post 5pm has also increased, with 5.4% of under
35-year-olds visiting coffee shops in the early evening which,
coinciding with a decline in alcohol consumption amongst younger
consumers[2], presents an exciting role and function for coffee
shops within the evening economy.
Ridley adds: "Coffee shops can play a greater role
in the early evening space with younger consumers who don't want to
drink alcohol but are still looking for the sociability that a pub
has to offer. Here's our opportunity to provide what our
customers are looking for - a place where they can be productive,
creative, or just have fun."
2.) A convenient cup
On-the-go consumption has grown exponentially since the
pandemic, due to the rise in hybrid and remote working. As a
result, the number of Drive-Thru outlets nationwide has grown 15.1%
over the last 12 months, of which Costa Coffee operates 43% of
these.
Costa Coffee also has over 14,800 self-serve Costa Coffee
Express machines across the country, to deliver an authentic coffee
shop experience at the touch of a button.
With that, the RTD (ready to drink) market is also seeing
considerable growth amongst time-strapped consumers. Sales data
from Costa Coffee shows that 20% of under 35 buy RTDs, compared to
just 6% of over 55s.
Andrew Miller, Director of
Costa Express & Costa Corporate Partnerships says: "While
there are still consumers who want to visit stores, we also see
customers who are time poor, so speed of service, technology and
convenience are really important. The rollout of our Costa Express
machines, which is rooted in travel & convenience, has allowed
us to reach these customers and continue to serve as a brand that
delivers for all customers".
In response, technological advancements enable brands like Costa
Coffee to provide a greater speed of service for customers whilst
maintaining the same quality as an in-store beverage, offering the
same customisation options.
Miller adds: "As a result we are working towards advancing our
Costa Coffee Express service, so that people expect to be able to
order almost the same drink, and have the same experience from a
machine, as they would from a coffee shop."
3.) The Costa-misation of Coffee
While two-thirds of UK consumers stick to a classic Latte or
Cappuccino, they are becoming more adventurous with their changing
coffee tastes, according to Costa Coffee.
Sales data shows that over a third (36.4%) of UK consumers
customise drinks aligning with their milk preferences, with oat
milk named most popular (31.4%). Similarly, flavour trends continue
to disrupt the market, and Costa Coffee data shows that 40% of
customers like to add a flavour syrup to their hot beverage when
given the chance, with most popular flavours being caramel,
vanilla, and hazelnut. However, the data also shows that flavour
syrups are most popular with younger consumers (34% Gen Z vs 5.3%
over 55s).
Moreover, research from the Costa Coffee's Store Of the Future,
a new store re-design programme launched in 2019, also found
that people are twice as likely to customise their coffee when
ordering via a digital ordering screen, rather than over the
counter, sighting judgement as a barrier to customisation.
Sandra Ferreira, Beverage
Innovation Director at Costa Coffee says: "Alongside
customisation, people also want a multi-sensory experience with
their drinks and we're seeing a growth in demand for texture in
drinks with the addition of cold foams and bubbles, e.g. a Tropical
Mango Bubble Frappe with bubbles, or Iced Whipped Lattes."
The results of the Lattenomics report reflect huge
socio-economic changes in the UK and the need for the industry to
innovate to continue meeting the growing demands of
consumers.
"We're on so many high streets, and we're one of the most
loved brands, so we have a responsibility to give people a reason
to go back" says Ferreira. "Costa Coffee's role is to continue to
be the go-to place where people connect."
The report is available from 21st May on the Costa Coffee
website. To find out more please
visit https://costanewsroom.vuelio.co.uk/press/press-releases/4dbda2b7-a830-458a-a913-5becb27086fd/lattenomics-the-state-of-the-nation-from-the-eys-of-a-coffee-cup
Notes to Editors
*Allegra Strategies, 2022
About Costa Coffee
Founded in London by Italian
brothers Sergio and Bruno Costa in
1971, Costa now has 2,800 stores across the UK and Ireland. Costa Coffee is present in 45
countries around the world with over 130 stores globally. Named the
"Best Branded Coffee Shop Chain in the UK and Ireland" by Allegra Strategies for 13
consecutive years (2010-2024). Since 2007, The Costa Foundation, a
registered charity with the aim of improving the life chances of
children in coffee growing communities by helping them access a
safe, quality education. So far, The Costa Foundation has funded
over 100 school projects and changed the lives of more than 120,000
children.
[1] Allegra World Coffee Portal
report, January 2024
[2] https://www.drinkaware.co.uk/research/alcohol-facts-and-data/alcohol-consumption-uk#howmanypeopledonotdrinkalcohol
PDF:
https://mma.prnewswire.com/media/2418196/Costa_Coffee_Lattenomics.pdf
View original content to download
multimedia:https://www.prnewswire.co.uk/news-releases/lattenomics-a-state-of-the-nation-from-the-eyes-of-a-coffee-cup-302151596.html