Increased customisation and the cold coffee revolution: Lincoln & York’s latest out of home coffee insight

Over the last 30 years, the landscape of the UK’s high street coffee scene has transformed significantly. The availability of out of home coffee, whether through independent cafés, prominent high-street chains or recognisable food service outlets, has become ubiquitous.

In 1999 the first ever Allegra report identified around 700 branded coffee shops in the UK. In 2024, UK coffee shop outlets have rocketed to exceed 10,000 for the first time ever, marking an increase of 14 times the 1999 figure.*

With so many options for out of home coffee, being in touch with what consumers want and catering to these demands has never been more important. The coffee landscape is continuously evolving which is why it’s key to work with a partner who knows what’s hot in coffee to help make sure you’re not only keeping up with the times but also standing out from the crowd.

Established in 1994, private label coffee roaster Lincoln & York was at the forefront of the UK’s coffee culture explosion and as the business celebrates its 30th anniversary, it’s undertaken an independent research project to delve into the evolving coffee drinking habits of today’s consumers.

As a taste of what’s to come in the full report, here are three key trends in coffee that operators need to take advantage of this year and beyond.

Younger consumers boost coffee consumption

Surveying over 1,000 consumers aged between 18 and 65+, almost a quarter of those interviewed are drinking more coffee today than they were five years ago, a trend predominantly driven by younger consumers. Nearly 40% of those aged 18-34 said they were drinking more coffee out of home, contrasting with almost 45% of consumers aged 55+ drinking less out of home coffee. 

Based on these findings, operators should prioritise keeping up with the latest coffee trends, from flavours to formats, to ensure their coffee menus are attracting younger audiences and more importantly, holding their interest.

Customisation is key

In addition to drinking more coffee, Lincoln & York’s research also reveals younger demographics are also more likely to customise their drinks to suit their tastes.

The report reveals that 75% of consumers in the 18 to 34 group ‘always’ or ‘occasionally’ opt for a flavoured syrup in their coffee, proving the importance of stocking a range of syrups all year round and jumping on seasonal trends such as pumpkin spice for autumn or Irish cream flavours for Christmas.

And it’s not only flavours that younger consumers are looking for to customise their coffee. Whether through flavour preference or dietary requirements, 37% of those aged 18 to 34 now choose alternative milks, such as oat, almond, soya or coconut, in their coffee. Operators should therefore make sure they’re equipped to cater to customisation which will be key to keeping younger consumers coming back for more.

Iced coffee is getting hotter

The younger generation’s growing thirst for iced coffee options is also reflected in Lincoln & York’s report, with iced coffee coming in as the group’s third favourite coffee option ahead of the ever-popular cappuccino and flat white. A preference for alternative milks also extends to iced coffee options with the younger age bracket also twice as likely to choose alternative milk in their iced coffee than those aged 55+.

In the last two years, iced coffee occasions have grown 66% to reach 49.5 million in the latest year.** No longer regarded as a summer drink, iced coffees are in demand all year round and at all times of the day so if operators aren’t making sure they’re available, they could be missing out on a major opportunity.

Looking ahead

As well as reflecting on the coffee industry’s evolution and capturing the most up to date trends, Lincoln & York’s coffee culture report outlines what operators can expect to see in coffee during the coming years.

Compiled by Lincoln & York’s passionate team of coffee experts and category insight specialists, the report details how operators can stay ahead of the curve and take advantage of consumers’ changing tastes. Backed by 30 years of knowledge working with the biggest names in high street coffee, independent coffee shops and wider hospitality venues and retail, delve deeper into the findings by downloading the full report available here.
 
* Allegra Project Café reports 1999, 2008 & 2023
** Kantar Out of Home Usage panel, 52 w/e 9 June 2024