More than ONE MILLION Brits use the drug regularly - making us the biggest market for the drug in Europe.
The cost of cocaine has dropped sharply over the last 20 years - though prices have increased again in the last couple of years.
In 1990, cocaine cost $131 a gram on Britain's streets - but by 2007, the price was just $91.
The quality of the drug has plummeted too as dealers dilute it with other chemicals to make more money.
One-third of cocaine seized in the UK now has less than NINE per cent purity.
Some coke found by cops was only five per cent pure.
The report concluded: "The UK thus continues to be - in absolute numbers - Europe's largest cocaine market, with its second highest cocaine use prevalence rate."
The UN report - produced by its Office on Drugs and Crime - also reveals that Britain is one of Europe's biggest markets for a host of other drugs.
There are 434,000 heroin users in the UK - the highest number in Europe.
Britain has more than TWICE as many smack addicts as France - and nearly three times as many as in Germany.
A total of 20 tonnes of cannabis was seized in the UK in 2007 - the third biggest amount after Russia and Turkey.
And over the last decade, Britain tops the table for seizures of amphetamines.
A total of 17.8 tonnes of the pills have been uncovered by the authorities in the UK.
The Netherlands came second with 10.6 tonnes, followed by Belgium with just 4.9 tonnes.
Britain also has 400,000 hard-core "problem" drug users - the biggest number in Europe.
Around 74,000 - around one in five - live in London.
The report found one in 20 British schoolkids aged 15 and 16 have tried cocaine at least once - and three per cent have had crack.
Nearly three out of ten have used cannabis at least once, while four per cent have tried ecstasy.
Shadow Home Secretary Chris Grayling said: "This is a really depressing snapshot of the drugs problem in the UK and underlines just how ineffective the Government's strategy on dealing with the drug problem has been."
Home Office Minister Alan Campbell said there was some evidence that cocaine use was starting to fall.
"We are, however, not complacent," he added.
"We are taking comprehensive action to tackle cocaine use from increased enforcement to reduce the supply, along with effective treatment, education and early intervention for those most at risk."
Comments