The UK coffee shop market grew in turnover by 7.3% to £9.6bn in 2017, according to a new report.

The Project Café2018 UK report, from Allegra World Coffee Portal, found that the number of UK coffee outlets grew by 1,215 over the least 12 months, representing 5.3% growth.

Branded chains delivered 10.5% sales growth to a record £4bn, with Costa Coffee, Starbucks Coffee Company and Caffè Nero continuing to dominate the UK coffee shop market. Together, the UK’s top three coffee chains comprise a 52.9% share of the total branded chain market.

Allegra anticipates the total UK coffee shop market will exceed 31,400 outlets, with a turnover of £13bn by 2022 – up from the current total of 24,061 outlets.

Allegra Group CEO Jeffrey Young said: “The UK coffee shop market continues to be robust despite current challenges, laying down modest growth in 2017 amid severe concern over the Brexit impact on jobs and investment.

“As the market matures and we enter the ‘5th Wave’, we’re seeing a new era of leading brands competing on excellence. Key players are sharpening their focus on customer experience to stay ahead of rivals. If leading coffee shops can do this successfully, the market will remain strong – it’s time for the industry to dig deep and capitalise on the opportunities ahead.”

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