Greggs Overtakes Costa as Leading Coffee Chain in the UK

Greggs, known primarily for its baked goods, has ascended to the top spot as the UK’s largest branded coffee operator by the number of outlets. In the first half of the year, Greggs expanded by 34 stores, reaching a total of 2,737 locations across the country. This marks a significant milestone for the company, which has traditionally focused on goods such as sausage rolls and pasties.

The shift in consumer preferences towards more affordable coffee options has bolstered Greggs' growth, with its lower-priced coffee proving attractive amid rising prices in the broader coffee market. This growth coincides with the bakery's strategic plan for further expansion, aiming for over 100 new shop openings in 2026, ultimately targeting 3,500 locations.

In contrast, Costa Coffee has been experiencing difficulties. Despite planning for a refurbishment and product line refresh, Costa reported losses exceeding £13 million for 2024. Furthermore, Coca Cola's plans to sell Costa stalled due to lower-than-expected interest and bids.

The broader UK coffee shop market grew to £6.8 billion in 2025, demonstrating a more than 5% increase from the previous year. Yet, the competition within this sector remains intense, with over 12,300 branded coffee outlets operating nationally, which is a 3.5% increase year-over-year.

The economic landscape also affects the coffee sector's future outlook. Climatic events such as El Nino are expected to further raise the prices of imported coffee beans. Greggs has already emerged as a leader in value, ranking No.1 on YouGov’s Brand Index for the coffee and quick-stop service segment, according to its 2025 financial report.

Additionally, recent research indicated that Costa Coffee offers the highest caffeine content among major UK chains, with Greggs ranking second.