The nation's latest obsession is coffee - the drink that has changed lifestyles throughout history, writes Sarah Parker.

It is believed that coffee was first cultivated in Ethiopia, perhaps in the sixth century. Seven hundred years later it was being enjoyed in the Yemen and was praised for encouraging wakefulness.

Laura English at the Goodbean coffee shop in CornmarketPilgrims subsequently spread the coffee drinking habit throughout the Islamic world, and it arrived in Europe after being discovered in 1609 by merchants of the East India Company in the Red Sea port of Mocha.

In London, coffee houses grew in popularity and quickly became centres of influence on all aspects of life. Merchants used them as a forum for discussion and soon thousands of coffee houses opened. By the late 18th century the boom had ended and tea took over, but now coffee is enjoying a revival.

It is a market that is worth millions of pounds and new coffee houses are opening to meet growing demand. The first purpose-planned coffee house in Europe was opened in Oxford in 1650, and the city now has has at least 40 coffee shops.

They include the world leader - Starbucks - now joined by the American Borders Books Music Cafe in Magdalen Street, and the Coffee Republic in New Inn Hall Street.

For the first quarter of this year, the US-owned Starbucks Coffee Company, the world's leading retailer, roaster and brand of speciality coffee, reported an increase in profits of 30 per cent from $406m to $527m compared with the first quarter of 1999.

Since 1992, the market for ground and real coffee has grown by 1,000 per cent, prompting a huge surge in newcomers keen to jump on the hot beverage bandwagon.

Recently opened in Cornmarket Street, Oxford, is a branch of the Brighton-based Goodbean Coffee Shop. This family-run chain already boasts an outlet within Blackwell's. The company opened its first shop in 1998 and plans to have 50 by 2002.

Borders Books Music Cafe, another US import and the second-largest books and music retailer in the world, gives customers the chance to browse and drink coffee at the same time.

The company's Rachel Huggard said: The cafe at Borders is open whenever the store is open - until 11pm from Monday to Saturday and until 5pm on Sundays.

Visitors can relax with a cup of coffee and a book. The cafe serves a variety of exotic coffees and only uses 100 per cent Arabica coffee beans.

So why do we all love coffee so much? Alex Beradi from Goodbean Coffee said: It is an American concept, but many of the chains in the UK are now English. The market is booming at the moment. Trends come and go and this seems to be here to stay.

Many customers know so much about coffee. They are discerning and know about the quality of roasting. Coffee shops are more than just coffee shops, they represent a change in society's attitudes to eating, relaxing and socialising.

In a survey of 200 people, enjoying a good cup of coffee was ranked fifth behind being in love, partying, achieving ambitions and looking good. People said they enjoyed it more than going on holiday, watching sport, owning a pet, reading or feeling fit.

Ms Beradi added: Goodbean is the youngest name on the High Street. There is a growing preference for ground and real coffee, which is seen as a younger, trendier drink than tea, and new coffee shops are chic and sociable settings.

Ms Beradi added: Coffee shops represent a sense of indulgence. Motivations for such behaviour might include a sense of personal accomplishment, to relieve tension, to cheer yourself up, a moment of self-congratulation or the celebration of a little extra money to spend.

To me from me is a plausible strategy when the luxury concerned is at most a few pounds.

From In Business magazine, The Oxford Times, November, 2000