Coffee Industry in the UK Essay -- Business Marketing Essays

hot chocolate Industry in the UKThe burnt umber industry has grown rapidly since the nineties before Starbucks emerged, people were used to drinking low quality deep brown from tins. Starbucks introduced fresh coffee tree made from top quality beans that have fantabulous taste and drinks such as the caffe latte and cappuccino, which have helped to fuel the phylogeny of the coffee trade into a multi million pound industry. The size of UK mark coffee chains have quadrupled from 1999 to 2004, with a current market dollar volume of over 1 billion. 2 Market ForecastsThe coffee market is think for continued growth 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 forget have plusd 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 acc ounted for to the highest degree of the coffee market growth according to forecasts by industry analysts Allegra Strategies. Allegra claims that although in that location be to a greater extent 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 instruction - environment analysis of the market SocialThe coffee market essential adapt to a change in consumer attitudes or else it may be threatened by health and lifestyle issues. In 2003 the hot drinks market declined by an estimated 2.3%. Consumers, especially young people, be 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 in that location is an increased divers ification of tea, with a trend towards premium and herbal teas. The coffee industry are responded to this change in attitude by training of de-caf drinks, options such as soy milk, and alternative drinks such as saucily squeezed fruit juices, chai lattes and herbal teas.People are nowadays working harder than constantly 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/ ecstasy/ creativityworks/pdf/authentic.pdf UK coffee shop market statistics 14 Mar 2005, Caterer & Hotelkeeper magazine, http//www.caterer-online.com/ enrolment/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 Northumb erland Av, Trafalgar Square. London, http//www.allegra.co.uk/project-cafe5-keyfindings.htmlOxfam to open coffee shops BB countersign May 2004Http//news.bbc.co.uk/1/hi/magazine/3708585.stmStarbucks success - more(prenominal) than just coffee ICFAI University Press http//www.icfaipress.org/304/AN-Starbuckway_72.asp The Coffee Market A primer coat Study Oxfam International Commodity Researchhttp//www.maketradefair.com/en/assets/english/BackgroundStudyCoffeeMarket.pdf .The estate of Sustainable Coffee Executive Summary http//www.ico.org/libser/executive%20summary.pdf .Whitbread Briefing apply 2005 Volume 1 http//www.whitbread.co.uk/docs/Briefing_Book_2005_voll.pdf