London, UK – The UK’s hospitality industry is expected to see steady growth in the coming years, according to new reports. The sector, comprising establishments like delis, restaurants, coffee shops, and cafes, is projected to grow from £20 billion in 2024 to £23 billion by 2029. This growth comes after a significant contraction during the COVID-19 pandemic.

The number of independent takeaway and fast food outlets has increased nearly 1,800 from 2019 to 2022, offsetting declines in chain establishments. Coffee shops hit 9,540 in 2021, with 3.5% annual growth. Branded coffee shops specifically are predicted to expand at 5.8% each year until 2026.

Gourmet coffee remains robust, accounting for 15% of out-of-home consumption. The branded coffee shop market boomed 43% in 2021, recovering from pandemic losses, and should surpass pre-COVID sales by end of 2023. The UK is Europe’s top branded coffee market.

However, the hospitality industry faces challenges like inflation, the economy, and Brexit’s impact on investment. While the sector is recovering, growth in accommodation demand may stall in 2024 due to oversupply risks. Delivery apps have also transformed food service, with 8.4% annual growth forecast for the delivery market through 2026.

“The hospitality industry is resilient and growing, but we must be mindful of cost pressures, labor shortages, and changing consumer behaviors,” said Lez of Branded Paper Cups. “If they navigate wisely, outlets like coffee shops and cafes will continue thriving.”