Greggs overtakes Costa as UK’s biggest branded coffee chain with 2,737 outlets
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UK branded coffee retail remains a growing market, but Costa losing the top spot to value-focused Greggs underscores intensifying competition and consumer trade-down behavior. The article also flags potential upward pressure on coffee bean import costs from climate-driven supply risks (e.g., El Nino), which could squeeze margins across the sector and support higher input-cost sensitivity in coffee-related commodities.
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Costa Coffee has lost its position as the UK’s largest coffee chain after budget bakery Greggs moved ahead on store numbers. Costa reported losses of more than £13m for 2024, and parent company Coca-Cola’s planned sale of the brand fell through after bids and interest were reportedly significantly lower than expected. The UK coffee shop economy grew to £6.8bn in 2025, with more than 12,300 branded outlets, keeping competition intense.
