Nearly half of the 40 European countries identified in the latest Allegra World Coffee Portal market report saw a decline in the number of coffee shops over the past year due to COVID-19. The year also saw dramatic slumps in coffee shop sales throughout Europe, by about 30%.
Major chains such as Costa Coffee, McCafé and Starbucks proved most resilient to the pandemic, with each reporting moderate growth in the total number of coffee shops. With more than 8,700 shops, those three chains now comprise about 22% of the total European coffee market, while 20 of Europe’s largest chains now control 48% of the total European coffee market.
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The COVID-19 pandemic has erased nearly a quarter of the total United States coffee shop market value, according to the latest annual report from coffee market research group Allegra World Coffee Portal.
The group now estimates the U.S. coffee shop segment to be worth some $36 billion heading into 2021, down 24% over the past 12 months with $11.5 billion in sales declines.
For the first time in modern history, there was also a net decrease in the number of coffee shops over the past 12 months, with the market contracting by 208 shops (0.6%) to comprise 37,189 outlets, according to the research.
Involving more than 100 interviews with industry leaders, field research, desk research and 5,000+ online surveys with U.S. consumers, Allegra World Coffee Portal found a remarkably negative sentiment among coffee shop operators regarding the current business climate.
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LONDON U.S. branded coffee shops will only return to pre-pandemic sales levels next year after the COVID-19 pandemic wiped out nearly a quarter of their turnover last year, according to Allegra World Coffee Portal, a research and consultancy firm.
The firm estimates sales at U.S. branded coffee shops, which include household names like Starbucks, JDE Peet’s and Dunkin’ Brands, fell 24% last year to $36 billion, and will only grow to $40 billion this year, below 2019 levels.
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