Coffee Industry in the UK Essay -- Business Marketing Essays

Coffee Industry in the UKThe drinking chocolate berry industry has with child(p) rapidly since the 1990s before Starbucks emerged, people were used to drinking low quality coffee from tins. Starbucks introduced fresh coffee made from top quality beans that charter excellent taste and drinks such as the caffe latte and cappuccino, which agree helped to fuel the development of the coffee market into a multi million pound industry. The size of UK mark coffee chains have quadrupled from 1999 to 2004, with a current market turnover of over 1 billion. 2 Market ForecastsThe coffee market is forecast for keep maturement and expansion, without threat of saturation in the near future. In 2004 the coffee market was estimated at having around 2,299 outlet units and it 2006 it is predicted that the number of units go away have increase to an estimated 2,965, with the growth of the branded coffee sector predicted to increase by 11% between 2004 and 2006. Indeed, branded chain outlets have accounted for most of the coffee market growth according to forecasts by industry analysts Allegra Strategies. Allegra claims that although there are more independents than branded coffee chains, in 2005 and 2006 it is expected that more branded than independent chains will be opening. Indeed, some independents. such as Bewleys in London, have had to close down. 3 Macro - environment analysis of the market SocialThe coffee market must adapt to a change in consumer attitudes or else it may be threatened by health and lifestyle issues. In 2003 the alive drinks market declined by an estimated 2.3%. Consumers, especially young people, are becoming more health conscious which makes coffee a less attractive choice the change magnitude number of alternatives available such as health and energy drinks are becoming competitors in the coffee industry. Research carried out by Mintel shows that there is an increase diversification of tea, with a trend towards premium and herbal teas. The cof fee industry are responded to this change in attitude by provision of de-caf drinks, options such as soy milk, and alternative drinks such as freshly squeezed fruit juices, chai lattes and herbal teas.People are now working harder than ever before but have more leisure time they now use coffee shops to socialise. Allegra research claims that dwelling time in coffee shops has increased 44.9% of consumers stay... ...au then tic cost a coffee ewww.dandad.org/inspiration/ creativityworks/pdf/authentic.pdf UK coffee shop market statistics 14 Mar 2005, Caterer & Hotelkeeper magazine, http//www.caterer-online.com/archive/articledetail.asp?articleID=57531Nestle Caterer & Hotelkeeper magazine, http//www.caterer-online.com/archive/articledetail.asp?articleID=50580Branded coffee bars are squeezing independents http//www.thehospitalitysite.com.au/article/44/OcO2db44.asp2005 Allegra Strategies Ltd. No.1 Northumberland Av, Trafalgar Square. London, http//www.allegra.co.uk/project-cafe5-keyfindin gs.htmlOxfam to open coffee shops BB News May 2004Http//news.bbc.co.uk/1/hi/magazine/3708585.stmStarbucks advantage - More than just coffee ICFAI University Press http//www.icfaipress.org/304/AN-Starbuckway_72.asp The Coffee Market A Background Study Oxfam International Commodity Researchhttp//www.maketradefair.com/en/assets/english/BackgroundStudyCoffeeMarket.pdf .The province of Sustainable Coffee Executive Summary http//www.ico.org/libser/executive%20summary.pdf .Whitbread Briefing Book 2005 Volume 1 http//www.whitbread.co.uk/docs/Briefing_Book_2005_voll.pdf