Greggs has surpassed Costa Coffee to become the largest branded coffee operator in the United Kingdom, following continued expansion in the first half of 2025. The bakery chain, traditionally known for its sausage rolls and savory pastries, has successfully leveraged changing consumer preferences by offering lower-priced coffee options compared to some competitors more focused on premium coffee and cake offerings.
According to the Allegra World Coffee Portal’s Project Cafe UK 2026 report, Greggs added 34 outlets between January and June 2025, bringing its total number of shops to 2,737. This expansion put it ahead of Costa, which operates 2,707 locations across Britain. This marks the first time Greggs has overtaken Costa in terms of outlet numbers, reflecting a shift in consumer demand toward value-oriented coffee options alongside higher-end offerings.
The UK coffee shop market grew to £6.8 billion in 2025, representing an increase of more than 5 percent compared with the previous year. Despite this growth, competition remains intense, with over 12,300 branded coffee outlets operating nationwide—a rise of 3.5 percent from 2024. This heightened competition reflects a diverse retail landscape where consumers are balancing their preferences between premium and more affordable coffee choices.
Greggs’ 2025 annual financial report highlighted that the company ranked first in value on YouGov’s Brand Index within the quick-stop and coffee shop category. This positioning underlines Greggs' effective strategy to attract customers seeking convenient, economical options. The bakery’s focus on accessibility and competitive pricing has helped it capture a larger share of the coffee market, traditionally dominated by more specialized coffeehouse chains.
With the overall UK coffee sector experiencing steady growth and increasing retail density, Greggs’ rise to the top spot signals broader trends in consumer behavior, emphasizing convenience and value. Observers note that while Costa maintains a strong presence, the evolving competitive landscape suggests continued shifts as consumers weigh quality against cost in their coffee choices.