The United Kingdom Ready-To-Drink Coffee Market is Projected to Grow at a CAGR of 2.4% During the Forecast Period (2022-2027)

The United Kingdom Ready-To-Drink Coffee Market is Projected to Grow at a CAGR of 2.4% During the Forecast Period (2022-2027)

DUBLIN, April 18, 2022–(BUSINESS WIRE)–The “United Kingdom Ready-to-Drink (RTD) Coffee Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” report has been added to’s offering.

The United Kingdom Ready-to-Drink Coffee Market is projected to grow at a CAGR of 2.4% during the forecast period (2022-2027).

The COVID-19 pandemic did not have much impact on the ready-to-drink coffee. Infact, the demand for ready-to-drink coffee increased due to the added convenience of the product.

The manufacturing units faced a minor halt because of the shutdown and government restrictions but soon recovered from the cause. Moreover, online sales increased as people resorted to buying goods through e-commerce platforms more often. According to Tesco, during the fourth quarter of 2020, the participation in online sales of the company reached a peak of 18%.

The demand for ready-to-drink beverages has witnessed growth due to the busy lifestyle and ready-to-drink coffee, being an excellent source of instant energy is becoming popular amongst youngsters as well the middle-aged working population.

Ready-to-drink coffee is a healthy substitute of carbonated drinks which are 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 are focusing 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. The product innovation with respect to 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 edge in the market.

Key Market Trends

Surge 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 on-the-go beverages, coupled with the convenience of the product is catering to further market growth.

Along with sufficing as a refreshment, the 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 United Kingdom, consumer spending on non-alcoholic beverages increased from 12073 million GBP in 2019 to 12982 million GBP in 2020 in United Kingdom.

Moreover, the ready-to-drink non-alcoholic beverages are showing an upsurge in the market, owing to busy lifestyle of consumers and added convenience of the products. Alongside, the benefits of functional ready-to-drink coffee, having antioxidants or added probiotics, have led to further growth in market demand.

Supermarkets/Hypermarkets Segment Holds 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 potential for stocking different variants of coffee, of different companies which 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 number.

Moreover, the offers and loyalty programs offered by these stores make the customers purchase regularly, leading to increased customer loyalty. For instance, Tesco, a leading supermarket chain in United Kingdom, provides loyalty card to customers which lets them earn 1 loyalty point for EUR 1 spent on both offline and online purchases.

Competitive Landscape

The United Kingdom Ready-to-Drink Coffee Market is highly competitive and the major players include Starbucks Corporation, The Coca-Cola Company, Luigi Lavazza SpA, Inspire Brands Inc., 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.

Companies are focused on collaborating together to create new product lines, suiting consumer demand. Product innovation is the key strategy considered by the key players in the market, addressing the changing trends of the market.

Companies Mentioned

  • Starbucks Corporation

  • The Coca-Cola Company

  • Luigi Lavazza SpA

  • Nestle SA

  • Monster Beverage Corporation

  • High Brew Coffee

  • Danone SA

  • Costco Wholesale Corporation

  • La Colombe Coffee Roasters

  • Inspire Brands Inc.

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