United Kingdom Ready-To-Drink (Rtd) Coffee Market - Growth, Trends, and Forecasts (2023 - 2028)

United Kingdom Ready-To-Drink (Rtd) Coffee Market - Growth, Trends, and Forecasts (2023 - 2028)

United Kingdom ready-to-drink (RTD) coffee market is projected to register a CAGR of 2.55% during the forecast period.

Key Highlights

• The demand for ready-to-drink beverages has grown due to the busy lifestyle, and ready-to-drink coffee, an excellent source of instant energy, is becoming popular amongst youngsters and the middle-aged working population. Ready-to-drink coffee is a healthy substitute for carbonated drinks associated with health hazards such as obesity and hypertension. The ready-to-drink coffee provides convenience by utilizing either brewed coffee or coffee extract that can be consumed in hot and cold form.
• Manufacturers focus on new product development with different flavors as a key strategy to expand their business and improve sales and distribution of ready-to-drink coffee. Product innovation concerning different flavors and tastes helps in gaining customer attention. The added benefits of functional ready-to-drink coffee attract consumers further. Functional ready-to-drink coffee gives scope to the key players to differentiate themselves from the competitors and gain an edge in the market.
• For instance, in September 2022, Califia Farms launched Pumpkin Spice Cold Brew, which will be available in Asda, Tesco, and Sainsbury. The brand-new RTD cold brew with real pumpkin purée and almond drink, combined with a warming blend of cinnamon, ginger, and nutmeg. The result is a drink that caters to retailers looking to make the most of seasonal drinks trends.

Key Market TrendsSurge in Demand for Non-Alcoholic Beverage

• The rising demand for non-alcoholic beverages is driving the growth of the market. People are more focused on consuming beverages that keep them refreshed and energized more often. The growing trend of carrying a beverage on the go, coupled with the convenience of the product, is catering to further market growth. Along with sufficing as a refreshment, ready-to-drink coffees also act as an energizing drink, owing to the caffeine content, which makes the consumers in the country prefer it more than any other non-alcoholic beverages.
• According to the Office of National Statistics of United Kingdom, consumer spending on non-alcoholic beverages increased from GBP 11,632 million (USD 14158 million) in 2020 to GBP 12,182 million (USD 14826 million) in 2021 in United Kingdom. Moreover, ready-to-drink non-alcoholic beverages are showing an upsurge in the market, owing to consumers' busy lifestyles and added convenience. Additionally, consuming coffee in the workplace or the mid-day as a refreshment is observed in the region, resulting in increased sales of ready-to-drink coffee products across the region.

Supermarkets/Hypermarkets Segment Holds the Largest Share

• The distribution of ready-to-drink coffee has expanded to several mainstream channels, such as supermarkets, hypermarkets, specialist stores, etc. Among the numerous outlets available, supermarket and hypermarket channels are preferred in the country, as they have the potential to stock variants of coffee from companies that cater to the consumer’s growing preferences.
• Expanding shelf spaces for innovative launches by companies is anticipated to drive market growth in the future. The increase in demographic spending, ease, and convenience through supermarket purchases is expected to pave a strong pathway for ready-to-drink coffee manufacturers to penetrate urban markets in the country, where these stores are being set in large numbers.
• Moreover, the offers and loyalty programs these stores offer make the customers regularly purchase, leading to increased customer loyalty. For instance, Tesco, a leading supermarket chain in United Kingdom, provides loyalty cards to customers, letting them earn one loyalty point for EUR 1 (USD 1.08) on offline and online purchases.

Competitive Landscape

United Kingdom ready-to-drink (RTD) coffee market is highly competitive. The major players include Starbucks Corporation, The Coca-Cola Company, Luigi Lavazza SpA, Emmi Group, and Nestle S.A., among others. The market is fragmented, with many global and regional players who compete to gain a large portion of the market share. The key strategies being used by these market players are focusing on the expansion of new facilities and expanding their manufacturing base. Alongside this, the companies are focused on collaborating to create new product lines that suit consumer demand. Product innovation is the key strategy considered by the key players in the market, addressing the changing market trends.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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