Roasters anticipating brewing growth amid strong market demand: study
Almost half of UK roasters say they are planning operational expansion.
UK roasters are gearing up for growth amid strong wholesale demand from independent cafés, the rise of locally roasted coffee and growing consumer appetite for café roastery experiences.
World Coffee Portal’s inaugural The Roasters Report reveals that over 400 roasteries are currently in operation in the UK, comprising of 268 micros, 143 medium and 7 at major level.
Despite an incredibly competitive retail landscape, rising demand for high-quality roasted coffee is said to have sustained growth across the UK roaster segment, particularly as the coffee shop market continues to expand. More than half of roasters surveyed (65%) cite current trading conditions as “positive”.
Almost 50% of UK roasters said they are planning operational expansion. Nearly half (44%) are operating at below 50% capacity, with just 5% currently at maximum capacity.
Locally roasted coffee, in-store experiences
The report also cited locally roasted coffee as a growing trend that has contributed to a broad regional distribution of roasters in the UK.
This dynamic, it explains, supports a symbiosis between independent coffee shops and proximate roasters, with 44% of industry leaders surveyed anticipating the biggest growth channel for wholesale distribution will be independent cafés, followed by workplaces and contract catering.
The emergence of café roastery concepts also marks segment development. World Coffee Portal says the retail concepts are an “effective” strategy to capitalise on growing appetite for coffee experiences by “bringing curious and increasingly savvy consumers into direct contact with the roasting process.”
Brewing competition
The report adds that a “buoyant” UK roasting segment continues to attract new market entrants, with new roasters supposedly seeking to disrupt the influence of established brands. Industry leaders identified competition from other roasters as the biggest market challenge currently, with nearly half (49%) perceiving an “oversupply” of roasters compared to consumer demand.
This dynamic is said to have driven M&A and investment activity within the UK roaster segment, such as Ozone Coffee Roaster’s acquisition of fellow specialty roaster Has Bean and roastery expansion at London-based Caravan Coffee Roasters and Grind.
