Coffee in Britain has evolved from a novelty exotic import to a cultural mainstay and a multi-billion-pound industry. While much of the lore about coffee in Britain emphasises cafés, literary coffeehouses or social change, the real story is one of supply chains, business models, branding, and financial innovation.
This article traces key phases in Britain’s coffee history, interweaving analysis of the modern wholesale and retail sectors, including firms like John Street Beverage, to show how the industry has evolved.
Early History: From Luxury to Public House Staple
The 17th–18th centuries: the coffeehouse boom
Coffee was introduced into London in the mid-17th century. The first coffeehouse in England is often credited to Pasqua Rosée, who opened a shop in Cornhill in 1652.
These coffeehouses became social hubs, “penny universities”, where businessmen, writers and merchants gathered. The coffeehouse model was less about retail profit per cup and more about providing a venue for discussion, information and social capital.
19th–early 20th centuries: industrialisation, imports and mass trade
As the British Empire expanded, so did access to coffee from colonial and tropical regions, lowering costs. The role of merchants and importers became central, and branding began to emerge, “mocha,” “arabica,” “Jamaica Blue Mountain”, to command premium pricing.
The Modern Era: Post-War to Present
Post-war expansion and branding
After World War II, tea dominated domestic consumption, but coffee slowly grew its presence in cafés, hotels and offices. In the 1970s and 1980s, as global trade liberalised, more varieties of roast and instant coffee became available, and consumer tastes diversified.
The rise of branded coffee chains
- Costa Coffee, founded in London in 1971, began as a wholesale roaster supplying other cafés. Acquired by Whitbread in 1995 and later sold to Coca-Cola for £3.9 billion, Costa now operates over 4,000 stores globally.
- Caffè Nero, launched in 1997, modelled itself on European espresso culture and now runs over 1,000 outlets.
- Pact Coffee and Black Sheep Coffee illustrate a newer wave of ethical, specialty roasters using direct trade, storytelling and subscription models.
These brands reflect how the UK coffee market shifted from fragmented independents to vertically integrated chains and tech-driven direct-to-consumer models.
Coffee as Industry: Market Size, Trends and Financial Metrics
- According to Grand View Research, the UK coffee market generated revenue of USD 4.8 billion in 2024 and is forecast to grow at a 6.5% CAGR through 2030.
- IBISWorld notes that UK café and coffee-shop revenues declined by about 3.4% annually over the five years to 2025, reflecting post-pandemic shifts and inflation pressures.
- The British Coffee Association estimates that 80% of consumers visit a café at least weekly, and about 16% go daily, underlining the beverage’s social and economic importance.
Financial performance and strategy
- Starbucks UK reported £548 million in sales and £149 million in gross profit in 2023 but paid only £7.2 million in corporation tax after royalties and licensing costs.
- Costa Coffee faces cost headwinds and competition from boutique cafés, prompting speculation that Coca-Cola may sell the chain.
These figures reveal how the coffee market’s apparent simplicity hides complex financial engineering, tax strategies, and global supply-chain economics.
Wholesale & Supply Chain: The Role of JS Beverage
The coffee trade relies on a backbone of wholesale suppliers, importers, roasters, and equipment specialists. One such example is John Street Beverage (JS Beverage), a family-run company in Kent with over 40 years’ experience.
JS Beverage supplies high-quality beans (including Lavazza and their own Street & Co blend), coffee machines, training and servicing for cafés, restaurants and offices. By offering both product and expertise, they act as strategic partners rather than simple suppliers.
Their integrated model; sourcing, roasting, logistics, equipment sales and training, shows how UK wholesalers have adapted to compete with global brands by adding value and building long-term client relationships.
Marketing, Branding & Consumer Trends
Premiumisation and storytelling
Consumers now expect more than “just coffee.” Provenance, roasting methods, ethical sourcing and taste notes all drive purchase decisions. Independent roasters use these narratives to justify higher margins and loyalty.
Digital and subscription growth
Brands such as Pact Coffee built recurring revenue through online subscriptions, giving them direct consumer data and stable cash flow.
Loyalty apps and experience marketing
Chains like Costa and Starbucks use digital loyalty programmes, mobile ordering and “third space” design, cafés as community hubs, to keep customers returning.
B2B marketing
Wholesale firms like JS Beverage focus on service quality, equipment, and staff training, differentiating themselves through partnership-driven marketing rather than mass advertising.
Challenges in the UK Coffee Sector
- Margin squeeze from rising energy, labour and bean costs.
- Saturation in high-street locations intensifies competition.
- Consumer affordability concerns during the cost-of-living crisis.
- Supply chain risks from climate change and logistics disruption.
- Tax and regulatory scrutiny, as seen with Starbucks’ royalty structures.
- Channel shifts toward home brewing, pods and ready-to-drink coffee.
Despite these pressures, ethical sourcing, digital innovation, and service diversification continue to offer opportunities.
The Outlook
The UK coffee market is expected to keep expanding, but success will favour those able to combine quality with innovation:
- Wholesale suppliers like JS Beverage can thrive by bundling beans, equipment, and barista training.
- Chains and independents must invest in sustainability, digital loyalty, and customer experience.
- Specialty roasters will benefit from transparency, storytelling and niche branding.
Coffee has always been more than a drink in Britain, it’s a business model, a marketing canvas and, increasingly, a financial ecosystem connecting growers, roasters, and millions of daily drinkers.
