UK Ready to drink (RTD) Coffee Market

The UK ready-to-drink (RTD) coffee market size was USD 101.99 Million in 2022 and is likely to reach USD 193.26 Million by 2031, expanding at a CAGR of 7.36% during 2023–2031. The growth of market is attributed due to increasing popularity of RTD coffee among middle-aged population and youngsters as a primary source of energy along with their changing work-life balance and consumption habits.

Coffee is considered as one of the best alternative of carbonated drinks which are associated with health concerns such as hypertension and stoutness. Ready to drink coffee offers convenience to their consumers to enjoy their extracted or brewed coffee in cold and hot form.

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Growing majority of coffee drinking population has escalated the segment in many folds. Upgraded on-the-go lifestyle and convenience is stimulating the demand for their favorite beverage. Vendors in the segment are changing their tactics according to the changing consumer’s preference where the margin they can fetch is higher along with offer an enchanting coffee drinking experience to their users.

The energy drink segment offers a platform where the manufacturers can showcase their product innovation, penetrate into new segments such as post-workouts, and innovate accordingly with the changing preference.

The outbreak of corona virus has not only affected the economy globally, but also risked the public health. With the several other industries food and beverages has been impacted by COVID-19 severally which involves limited production capacity, restricted international trades, and witnessed low consumption rate of all time.     

With the government rules of partial and full lockdown of restaurants, shops, and offices resulting in low consumption of coffee out of the home. On the other hand panic buying and inventory stocking spiked the demand for the coffee in some parts of the country.

UK Ready-to-Drink (RTD) Coffee Market Trends, Drivers, Restraints, and Opportunities

• Growing trend of coffee consumption among youngsters and aged population as a source of instant energy is expected to drive the market in coming years.

• Increase consumption of coffee as a substitute of soft drinks to combat with health hazards factors is estimated to spur the market during the forecast period.

• Offering convenience to enjoy beverage anywhere and in any form is anticipated to boost the market during the projected period.

• R&D and technological advancement on new product innovations with range of flavors is estimated to propel the market during the forecast period.

• Fluctuation of raw material prices and increasing cost on agricultural inputs are some of the factors that can hamper the growth of the market in the coming years.

Scope of UK Ready-to-Drink (RTD) Coffee Market Report

The report on the UK ready-to-drink (RTD) coffee market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

UK Ready-to-Drink (RTD) Coffee Market Segment Insights 

Based on packaging, the market is segregated into bottles, cans, other packaging. The bottles segment is further segregated into PET bottles and glass bottles. The bottle segment is expected to hold key share of the market during the forecast period owing to these bottles improving the shelf life of the product, available is different sizes which comes handy and can be carried conveniently, caps and lids on top of the bottles allows to preserve their freshness and conceals the aroma of the drink also PET bottles allows the consumers to consume the product based on their preference either hot or cold.

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On the basis of distribution channels, the market is fragmented into supermarket/hypermarket, online retails, convenience stores, specialist stores, and others. The supermarket/hypermarket segment is expected to exhibit high CAGR during the projected period due to potentiality of stocking up different range of coffee beverages of different company’s under one roof to cater the consumer’s preference, product development by the companies’ estimates in expansion of shelf spaces, and increasing disposable income, convenience purchase from supermarket are some of the factors anticipated to pave strong pathway for the segment.

Segments

United Kingdom ready-to-drink (RTD) coffee market has been segmented on the basis of

Packaging

• Bottles
  • PET Bottles
  • Glass Bottles
• Cans
• Other Packaging

Distribution Channels

• Supermarket/Hypermarket
• Online Retails
• Convenience Stores
• Specialist Stores
• Others Channels

Country

• United Kingdom

Key Players

• The Coca-Cola Company
• Starbucks Corporation
• DD IP Holder LLC (Dunkin’s Brands)
• Luigi Lavazza SpA
• Nestle SA

Competitive Landscape

Key players competing in the United Kingdom ready-to-drink (RTD) coffee market includes The Coca-Cola Company; Starbucks Corporation; DD IP Holder LLC (Dunkin’s Brands); Luigi Lavazza SpA; Nestle SA. Some of these players are targeting on business strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to increase their market shares. For instance

• In July 2021, Starbucks Corporation and Nestle SA announced a strategic partnership to bring ready-to-drink beverage to Southeast Asia, Oceania, and Latin America and will be made available to consumer globally soon.

• In February 2020, Starbucks Corporation expanded the RTD portfolio by introducing three new beverages, vanilla sweet cream, unsweet black, and dark caramel.

• In January 2021, The Coca-Cola Company introduced coffee mix Coca-Cola with zero sugar penetrates into US market with 3 flavors, dark blend, caramel, and vanilla.