A Lavazza premium vending machine in London, UK | Photo credit: Selecta

Costa Express commands largest share of the UK premium vending and self-serve market
 

The growth of the UK premium vending and self-serve coffee market has been led by Costa Coffee, which added more than 1,150 Costa Express units within the last 12 months to reach 13,200. Mainly located within petrol stations, supermarkets and convenience stores, Costa Express holds a 64% market share of the UK’s consumer-facing premium coffee vending machine network, which stands at 20,771 units.  
 

Manchester-based Absolute Coffee is the second largest operator by units having added over 250 to reach 1,500, ahead of We Proudly Serve Starbucks which grew by more than 100 units to reach 1,100. 
 

Petrol stations most popular venues for UK premium coffee vending units 

The majority (72%) of key UK coffee shop industry leaders surveyed consider the current trading environment for premium vending and self-serve operators as positive, with only 8% citing conditions as difficult. 
 

Petrol stations remain the most popular locations for premium vending machine coffee purchases (61%), ahead of convenience stores (48%), supermarkets (42%) and hospitals (22%). 

While 96% of UK consumers surveyed indicate that modern machines are easy to use and 71% say they are visually appealing, concerns remain about the cleanliness of units, particularly machines installed at third party locations. Forty-two percent of UK consumers attempting a premium vending coffee purchase over the last 12 months found the machine out of service, while 26% encountered a machine they considered too unclean to use. 

A We Proudly Serve Starbucks self-serve kiosk | Photo credit: Selecta

Demand for dairy alternatives set shape next generation of premium self-serve machines
  

A majority (77%) of UK premium vending and self-serve consumers surveyed emulate their coffee shop order when using a machine. As plant-based dairy alternatives gain traction across the UK branded coffee shop market, 76% of industry leaders surveyed state demand for dairy alternatives in premium vending machines as significant. 
 

Oatmilk is the preferred dairy alternative for a premium vending and self-serve machines for 50% of consumers. Inclination towards oatmilk was higher than the following four dairy alternatives combined – soya milk (14.4%), almond milk (13.7%), coconut milk (13.4%) and hazelnut milk (3.7%). Seventeen percent of consumers surveyed had ordered a premium vended beverage with a dairy alternative within the last 12 months. 

However, the risk of cross contamination and the provision of allergen information remain issues, particularly in older machines which lack the fridge space and mechanisms to keep dairy and non-dairy products separate.  

Consumers still value the human touch in coffee shops 

Advanced super-automatic espresso machine technology is closing the gap between the speed of service and consistency of coffee beverages produced by baristas and automated machines. More than 20 branded coffee chains in the UK currently use super automatic bean-to-cup coffee machines in-store, including Starbucks, Greggs and Pret A Manger. 
 

While super-automatic espresso technology is currently present in 46% of all UK branded coffee shops, 47% of consumers surveyed disagreed they would be open to a fully automated coffee shop experience – with many operators blending automatic technology while retaining barista control over milk frothing, steaming and handcrafting latte art. 

Commenting on the report findings, Allegra Group Founder and CEO Jeffrey Young said: “Given the need for convenience in coffee consumers’ busy lifestyles, it is very encouraging to see how the UK coffee industry is responding to this demand. Eleven percent annual unit growth is an impressive achievement in a highly challenging economic climate.”