The Demand For Coffee Increased in 2020
In late March 2020, around 20% of the world’s population were ordered to stay at home to prevent the spread of COVID-19. With more people staying at home and fewer entering urban areas as a result, cafés have seen a huge decrease in sales. Out-of-home coffee consumption, such as in cafés and restaurants, makes up around 25% of total consumer demand for coffee and with 95% of these places closing due to COVID-19, coffee lovers are looking alternatives. One of these being to just simply make coffee at home…
Many People Want to Brew Coffee at Home
As mentioned above, people are having to resort to brewing their own coffee as their favourite coffee shops are mostly unavailable. Sales of all coffee equipment, including items like pouring kettles, rose by 11% in 2020, showing that coffee drinkers are willing to spend significant amounts of money to improve the quality of the coffee they drink at home. This shows that demand for coffee will always be there and lovers of the caffeine-filled drink will do whatever that have to, to get the cup of coffee that they’ve always had before the global pandemic hit.
Demand for coffee has also led to an increase of coffee machines and filters in homes, the likelihood of these machines breaking down will also increase as they are being used much more as these machines are the only way that consumers can have espresso-based coffee. Luckily our specialists at Espresso Service are always on hand to fix your broken coffee machine. Read on to see how important coffee is in the UK!
The UK is Europe’s Fifth-Largest Coffee Market
Britain has always been known for its love of tea, it seems that currently however, that coffee may just be taking over! The United Kingdom was the fifth-largest coffee market in 2018, only below Germany, Italy, France, and Spain. The British coffee market consumed over 120 thousand tonnes in 2018, making up 6.6% of the total European market. During COVID in 2020, the coffee market hit a slight decline of around 0.5% yet in the long run, demand for coffee is expected to increase as shops are allowed to be re-opened and society begins to show some signs of normality or at least settles in the ‘new normal’!
M&A, Consolidation and Foreign Investment
The Demand in the UK for coffee has increased due to many M&A’s taking place over the last 3 years. One of the most notable deals and M&A’s that occurred was Coca-Cola, the famous drinks company finalised a £3.9 billion acquisition of coffee market leader, Costa Coffee.
The UK coffee shop changed the landscape through 2020 as have many other brands that were involved in M&A activity.