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Coffee Processing in the UK - Market Research Report (2014-2029)

Timilehin Atere Timilehin Atere London, United Kingdom Last Updated: February 2024 SIC C10.832

Revenue

£1.2bn

2024-25

£1.2bn

Past 5-Year Growth

Profit

£XXX.Xm

Employees

2,338

Businesses

89

Wages

£XXX.Xm

Coffee Processing in the UK industry analysis

Coffee is one of the world’s most popular drinks and holds the position as the second-most traded good after oil. The British Coffee Association reports that the UK population drinks roughly 98 million cups of coffee each day in 2021. The vast majority of the UK's coffee beans are imported from Asia, South America and East Africa. Once imported, these beans are processed into finished products. The price of coffee is volatile, largely because it’s contingent on successful harvests.

Trends and Insights

  • High inflation pushes up costs. Coffee processors have seen increased transportation and utility costs. They’ve been passing higher costs onto consumers by hiking product prices.
  • Instant coffee remains the most popular product. It gained ground during the cost-of-living , with soaring inflation pushing more people to switch to instant coffee to save money.
  • London remains an important location for coffee processing. Its large consumer base and major ports and airports make it ideal for importing and exporting.
  • Competition between the biggest companies heats up. The major coffee processors are constantly trying to innovate and diversify their product offerings to keep up with changing consumer tastes and capture market share.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 2.8 % over the past five years, to reach an estimated £1.2bn in 2024.

Trends and Insights

Historic inflation drives the price of premium coffee sky-high

  • In 2022-23, record inflation levels, peaking at 11.1% in October, led to a surge in overhead costs for coffee processors.
  • Additional trends and insights available with purchase
Coffee Processing in the UK
Revenue (2014-2029)
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Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Sustainable sourcing becomes more commonplace

  • Consumers are increasingly concerned about environmental matters, a trend that extends to coffee drinkers. Many coffee processors partner with farms certified by Fair Trade and the Rainforest Alliance to align with eco-friendly practices. Costa Coffee exemplifies this approach, sourcing 100% of its coffee beans from Rainforest Alliance-certified farms.

Biggest companies in the Coffee Processing in the UK

Company
Market Share (%)
2024
Revenue (£m)
2024
Nestle UK Ltd
559.9
Jacobs Douwe Egberts GB Ltd
360.2
The Nero Group Ltd
113.0

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Coffee Processing in the UK
Products & Services
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Industry revenue is measured across several distinct product and services lines, including Instant coffee, Ground coffee and Decaffeinated coffee. Instant coffee is the largest segment of the Coffee Processing in the UK.

Trends and Insights

Instant coffee remains a staple due to its cost effectiveness and longer shelf life

  • Soluble or instant coffee is the type of coffee most commonly consumed in the UK. It’s produced by freeze-drying or spray-drying coffee beans, which are then rehydrated
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Companies in this industry help transform raw coffee into market-ready products. They roast and process coffee into ground coffee, instant coffee, coffee pods and coffee extracts and concentrates.

What's included in this industry?

Ground coffeeInstant coffeeCoffee extracts, syrups and concentratesDecaffeinated coffeeCoffee pods and capsules

Companies

Nestle UK LtdJacobs Douwe Egberts GB LtdThe Nero Group Ltd

Purchase this report to view all 5 major companies in this industry.

Related Terms

ARABICADECAFFEINATIONROBUSTA

Industry Code

SIC 2007

SIC 10.83/2 - Coffee Processing in the UK

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

High inflation pushes up costs. Coffee processors have seen increased transportation and utility costs. They’ve been passing higher costs onto consumers by hiking product pri...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Instant coffee remains the most popular product. It gained ground during the cost-of-living , with soaring inflation pushing more people to switch to instant coffee to save m...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

London remains an important location for coffee processing. Its large consumer base and major ports and airports make it ideal for importing and exporting.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Competition between the biggest companies heats up. The major coffee processors are constantly trying to innovate and diversify their product offerings to keep up with changi...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Increased demand for home coffee boosts Nestle’s revenue. The company's coffee machine brands, Dolce Gusto and Nespresso, were among the best performing throughout the pandem...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Nestle UK Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Jacobs Douwe Egberts GB Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of The Nero Group Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for Nestle UK Ltd, and factors influencing its performance in the industry
  • Description and key data for Jacobs Douwe Egberts GB Ltd, and factors influencing its performance in the industry
  • Description and key data for The Nero Group Ltd, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Demand from cafes and coffee shops climbs. These outlets are a vital downstream market for coffee processors, so a rise in demand offers an opportunity to expand revenue.

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Higher prices give profit a boost. The dominance of large producers allows them to control prices, so input price increases are being passed onto consumers in full, driving u...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2018-2022)
  • Coverage Ratios (2018-2022)
  • Leverage Ratios  (2018-2022)
  • Operating Ratios (2018-2022)
  • Assets (2018-2022)
  • Liabilities (2018-2022)
  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Coffee Processing in the UK industry in United Kingdom in 2024?

The market size of the Coffee Processing in the UK industry in United Kingdom is £1.2bn in 2024.

How many businesses are there in the Coffee Processing in the UK industry in 2024?

There are 89 businesses in the Coffee Processing in the UK industry in United Kingdom, which has grown at a CAGR of 0.2 % between 2019 and 2024.

Has the Coffee Processing in the UK industry in United Kingdom grown or declined over the past 5 years?

The market size of the Coffee Processing in the UK industry in United Kingdom has been declining at a CAGR of 2.8 % between 2019 and 2024.

What is the forecast growth of the Coffee Processing in the UK industry in United Kingdom over the next 5 years?

Over the next five years, the Coffee Processing in the UK industry in United Kingdom is expected to grow.

What are the biggest companies in the Coffee Processing in the UK market in United Kingdom?

The biggest companies operating in the Coffee Processing market in United Kingdom are Nestle UK Ltd, Jacobs Douwe Egberts GB Ltd and The Nero Group Ltd

What does the Coffee Processing in the UK in United Kingdom include?

Ground coffee and Instant coffee are part of the Coffee Processing in the UK industry.

Which companies have the highest market share in the Coffee Processing in the UK in United Kingdom?

The company holding the most market share in United Kingdom is Nestle UK Ltd.

How competitive is the Coffee Processing in the UK industry in United Kingdom?

The level of competition is moderate and steady in the Coffee Processing in the UK industry in United Kingdom.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Tea Processing in the UK
  • Fruit Drink & Functional Beverage Production in the UK

Complementors

  • Chocolate & Confectionery Production in the UK
  • Condiments & Seasoning Manufacturing in the UK
  • Supermarkets in the UK

International industries

  • Coffee Production in the US
  • Coffee & Tea Production in Canada
  • Tea, Coffee and Other Food Manufacturing in Australia
  • Tea, Coffee and Other Food Manufacturing in New Zealand
  • Powdered Beverage Manufacturing in China

View all industries in United Kingdom

Methodology

How are Alfabank-Adres reports created?

Alfabank-Adres has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for Alfabank-Adres readers. Finally, each report is reviewed by one of Alfabank-Adres’s editors, who provide quality assurance to ensure accuracy and readability.

Alfabank-Adres relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do Alfabank-Adres analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the UK include:

  • Office for National Statistics
  • Office for Budget Responsibility
  • Bank of England

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, Alfabank-Adres’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does Alfabank-Adres forecast its data?

Alfabank-Adres’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

Alfabank-Adres prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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