The UK coffee shop market grew by 7.9% in turnover during 2018, driven by the big brands, according to a new report on the UK café industry.

Allegra World Coffee Portal’s report revealed the total UK coffee shop market is now valued at £10.1bn across 25,483 outlets, following 20 consecutive years of growth.

Branded coffee shops secured robust 8.7% outlet growth in 2018 to reach 8,149 stores.

Costa Coffee, Starbucks and Caffè Nero remain the three largest coffee-focused branded chains in the UK.

Allegra forecasts the UK branded coffee shop market will exceed 10,000 outlets by 2023, with a five-year compound annual growth rate of 5%.

However, most industry leaders said Brexit was negatively impacting trade and creating business uncertainty, with 49% of respondents indicated Brexit was negatively affecting their business, with 46% remaining neutral and 5% reporting a positive impact. Some 69% agreed it was negatively impacting consumer confidence.

Commenting on the research, Allegra ceo Jeffrey Young said: “Twenty years of consecutive growth, in terms of outlets, turnover and like-for-like performance is an impressive feat by this robust segment that has become intrinsic to UK lifestyles.

“More growth will continue, albeit at a slower pace, as the economy is subjected to myriad pressures, including structural retail change, technological development, changing consumer habits and deep uncertainty on the numerous potential outcomes of Brexit.”