Project Café9 Europe | Flagship Allegra Report



London, 13 December 2009 – Allegra Strategies has now released its definitive study on the European branded coffee shop market. It is the most comprehensive research ever conducted on this fast developing market, focusing on the growth of branded chains across 22 countries.

Countries covered include Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Republic of Ireland, Italy, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Spain, Sweden, Switzerland and UK.

Market Size and Growth

• The European branded coffee shop market now exceeds 9,000 outlets, having grown by 9% for the year
• The European branded coffee shop market has grown at a greater rate than industry executives expected, adding over 700 outlets in the last 12 months
• The UK has the most developed branded coffee shop market with a 40% share of the total European market
• Germany and Spain are both well established markets, with 1,302 and 882 branded outlets respectively
• The fastest growing markets in terms of outlets are Romania, Belgium and Poland

Global Economic Downturn

• The recent global economic recession has slowed growth in coffee shop markets throughout most of Europe as consumers cut back on spending and seek value for money.
• The top 20 branded coffee chains in Europe have continued to experience growth, just at a slower rate. Only four chains have shown a decline in store numbers
• Most operators identify the economic downturn and its associated trends of low consumer confidence and increased costs as a key current business challenge
• Coffee shop markets in the Republic of Ireland, Spain and Portugal are the worst affected countries, with stagnating or contracting markets

Key Players

• McDonald’s McCafé grows at the fastest rate, making it the market leader in Austria, France, Germany, Hungary and Italy
• Starbucks Coffee Company continues to be the leading chain across Europe, trading from more than 1,180 outlets
• Other major branded players across Europe include: Costa Coffee, Caffè Nero, Caffè Ritazza and Segafredo Zanetti Espresso

Market Dynamics and Trends

• Independents continue to dominate over branded coffee shops in most European countries
• A significant number of European coffee shop markets are defined by a traditional coffee culture, creating a challenging environment for branded concepts
• Departure from traditional cafés is unlikely but there is notable growth in consumer demand for ‘new style’ coffee shops and takeaway coffee

Editor’s Notes
Management Consultancy Allegra Strategies has accurately predicted developments in the fast-growing European coffee segment for a decade and publishes each year what the industry describes as ‘the bible’ of the branded coffee shop sector.

Sources
324 in-depth interviews with industry leaders, including CEOs and Managing Directors of the major coffee chains, key suppliers, industry associations and other industry participants
Desk research including trade press, company financial information and online data sources

For further information on this report or to find out more about The Allegra Food Strategy Forum please call Yvette Mackenzie on 020 7691 8842 or email yvmackenzie@allegra.co.uk