Starbucks moves past O'Brien's in coffee market
The three largest coffee chains in Ireland account for 52pc of the market between them, with Insomnia. Costa Coffee and Starbucks leading the Irish cafe scene.
According to a new report by London-based consultants Allegra, Starbucks has now overtaken O'Brien's to become the third-largest player in the market.
Overall, the branded coffee markets grew by 23 stores in the past 12 months, an increase of 4pc.
The Galway-founded group Insomnia is the largest coffee shop chain in Ireland and opened a further two stores, bringing its estate to 128 outlets.
Costa Coffee delivered the largest growth, increasing from 88 stores in 2016 to 102 in 2017, increasing its market share by 2 percentage points to 17pc.
According to the Allegra World Coffee Portal Report, Starbucks had eight net new store openings over the past year, bringing its total number of outlets to 79. It says that O'Briens now has 73 stores.
Caffe Nero entered the Irish market in 2014 and has stated an ambition to expand to 40 outlets. It has nine stores with one new opening in the past 12 months,
High rents remain the biggest challenge to new openings, particularly in Dublin city centre. Some 90pc of industry leaders believe that is plenty of room for new branded coffee shops. During the year the price of medium lattes and cappuccinos rose 4pc.