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Thriving European coffee shop market shows strong growth in 2015

The European branded coffee shop market is showing stronger growth in 2015 compared with 2014.

The total number of branded outlets is now estimated at 19,472 stores, with 1,615 stores added in 2015. This is according to the new Project Café16 Europe report released by Allegra World Coffee Portal.

Strong multinational brands continue to flourish across European markets

19 of the 24 countries within the report saw expansion in number of outlets, as leading chains Costa Coffee, McCafé and Starbucks continue to invest in the European market.

These three international brands have a combined market share of more than 30% and are also influencing the growth of strong, focused national chains including Espresso House and Columbus Coffee.

The UK remains the most developed branded coffee shop market, representing 33% of the total European market with more than 6,400 outlets. Turkey also shows strong signs of growth after adding more than 300 outlets in 2015 and Russia grew to 1,896 stores despite its prevailing political and economic fragility.

As the market evolves, strong multinational brands continue to flourish as do focused, quality national operators. However, the weaker traditional concepts are being challenged by the wave of lifestyle coffee shops across Europe and are exiting the market, with Café y Té closing 40 stores and Segafredo closing 21.   

Costa Coffee leads the branded chains in Europe

Costa Coffee dominates the market in Europe, with 2,315 stores across eleven countries. This international brand is also the fastest growing chain in Europe, adding 209 outlets in the last twelve months.

McCafé is present in 16 countries with a total of 1,993 outlets and Starbucks has a strong presence in 22 of the 24 European countries examined in this report, bringing its total number of stores to 1,965.

Speciality coffee and café culture increasingly integral to European lifestyle

The influential third wave artisan scene continues to grow and successful branded chains are adapting to this artisan influence with new in-store design, origin coffee and freshly made food.

This continued growth of speciality coffee culture shows that consumers are unwilling to give up their daily coffee treat, especially across strong growth markets such as Turkey, Denmark, Sweden and the UK.

Although this trend shows no sign of abating, coffee shops across Europe must offer quality coffee in a high footfall location, with compelling food served by engaged, passionate staff in order to be successful.

Multichannel coffee shop experience key to future growth and success

Key opportunities for growth remain positive in all brand-embracing markets like Russia, Turkey, France, the Netherlands and Scandinavia where existing international chains are influencing the expansion and emergence of domestic brands.

As consumers look for a multichannel coffee shop journey, coffee equipment and technology will also improve significantly, with the rise of mobile and digital technologies leading to advanced payment and loyalty systems that help to enhance the customer experience.

Project Café16 Europe is now available to purchase from Allegra Strategies World Coffee Portal Limited.

For more information on Project Café16 Europe, please email
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