Here’s something to stir your curiosity: Costa Coffee’s losses have more than doubled in two years, while illycaffè bets big on US growth. The coffee world is shifting fast, and these moves reveal a deeper battle for relevance. Costa, once a UK titan, now faces a dual threat: shrinking footfall and a flood of value-driven rivals. Greggs and Pret A Manger have nibbled away at its market, but the real pressure comes from Gen Z darlings like Blank Street and Black Sheep. These brands aren’t just selling coffee—they’re redefining what it means to be trendy, affordable, and Instagram-ready. Costa’s latest matcha line is a gamble to win back younger customers, but will it cut through the noise?
Meanwhile, illycaffè is rewriting the rules. The Italian icon, known for its heritage, is doubling down on the US with plans to launch local production in 2026. By roasting 15-20% of its coffee domestically, illy aims to crack the supply chain, boost innovation, and stay ahead of price volatility. This isn’t just about coffee—it’s about control. While 2026 promises stability, the broader message is clear: scale alone isn’t enough. Brands must balance tradition with agility to survive. Costa’s struggles and illy’s bets highlight a split in the market—one side clinging to legacy, the other racing to reinvent.
The real takeaway? Coffee isn’t just about beans anymore. It’s about identity, timing, and the ability to adapt. Costa’s losses aren’t just financial—they’re a sign of shifting consumer priorities. illy’s move, meanwhile, shows how even established players must rethink their playbooks. The question is: who will dominate the next era of coffee?
Key points: Costa’s matcha gamble risks missing the mark on Gen Z, illy’s US expansion hinges on local roasting for agility, and the coffee industry’s future depends on balancing heritage with innovation.
Will Costa’s new range save it, or is illy’s strategy the blueprint for survival.
Coffee lovers, what do you think? Will Costa’s new range save it, or is illy’s strategy the blueprint for survival? Drop your take in the comments.
Questions & Answers
How much did Costa lose in 2023?
Costa reported £388 million loss in 2023, driven by UK market challenges and supply chain issues.
Where is illy expanding in the US?
illy is expanding into New York and Los Angeles, opening new cafes to boost US market presence.
Information sourced from industry reports and news outlets.
