Rising consumer demand for year-round convenience, innovative flavours, and premium, on-the-go products are fuelling the UK hot beverages and ready-to-drink (RTD) cold coffee sector.
Busy lifestyles make portable beverages essential for modern daily routines.
Grab-and-go formats save time by removing the need for home brewing or waiting in café queues.
Retail availability across more than 50,000 UK convenience stores and supermarkets ensures easy impulse purchases.
Seasonal shifts mean iced coffee is no longer just a warm-weather drink.
Data from Lincoln & York shows that nearly 40% of consumers drink cold coffee regardless of the weather.
Younger demographics (ages 18 to 34) now rank iced coffee as a top daily beverage choice over traditional hot drinks.
Exciting new tastes like pistachio lattes, iced matcha, and drinkable desserts attract social-media-savvy buyers.
Functional health options—such as zero-sugar, high-protein, or vitamin-infused coffees—appeal to health-conscious shoppers.
Better decaffeination methods have removed the old bitter taste, boosting sales for high-quality decaf options.
Artisan experiences encourage buyers to spend more on perceived quality during social occasions.
Brand expansion by popular chains drives broader familiarity and trust in premium packaged options.
The UK hot beverages category is valued at £2.9 billion (Circana, 52 w/e 18 April 2026), with hot coffee accounting for £1.9 billion (Circana, 52 w/e 11 July 2026). Growth across the sector is primarily driven by changing consumer habits, specifically an appetite for premium yet convenient options and clear value.
As Ed Sykes, Customer Category and Shopper Lead for Nescafé UK & Ireland, highlights: “More and more shoppers are looking for quality coffee experiences that fit easily into their daily routines. We’re seeing particularly strong momentum in premium instant coffee, with the super-premium segment growing by +12.7% in convenience stores (Circana, 52 w/e 18 April 2026).”
Beyond premiumisation, two key formats are driving current market momentum.
Total Price Marked Packs sales grew +29.2% year-on-year (Circana, 52 w/e 13 June 2026), with Nescafé Gold Blend PMP volume sales soaring by +402.1% in symbols and independents (Circana, 52 w/e 13 June 2026).
Ready-to-drink iced coffee sales rose +7.4% in value and +4.6% in volume (Circana, 52 w/e 13 June 2026).
Sykes notes: “One of the biggest trends we’re seeing is continued growth in iced coffee. Ready-to-drink coffee continues to drive much of this growth.”
Nescafé continues to lead in key segments, holding a 53% value share in frothy coffee (Circana, 52 w/e 11 July 2026).
To capture demand, Nescafé’s 2026 New Product Development (NPD) spans RTD Iced Lattes, concentrated formats (including Nescafé Espresso Concentrated Decaf/Mocha and Starbucks® Coffee Craft), and confectionery-aligned sachets (KitKat White Flavour Latte and Lion Flavour Mocha).
To help retailers maximise sales, Sykes emphasises simple navigation: “The simpler we can make the shopping journey, whether in store or online, the easier it is for retailers to meet shopper needs and drive sales.” The ready-to-drink (RTD) cold coffee category continues to experience rapid growth, reaching a value of over £377 million annually with an 8.3% year-on-year value increase and a 5.8% rise in unit sales. Outperforming the wider market, Arctic Coffee maintains its position as the number two RTD iced coffee brand by volume.
According to Jo Taylor, Senior Brand Manager at Arctic Coffee, success in this expanding market requires balancing indulgence with health benefits: “For us, the opportunity isn’t about choosing between health and taste – it is about delivering both. The brands that will continue to succeed are those that make healthier choices feel just as enjoyable as traditional favourites.”
Demand is increasing for functional and lifestyle-led options alongside core products:
Products like the Protein Caramel Latte (15g protein, no added sugar, low calorie) are seeing rapid growth.
May’s launch of Arctic Decaf Café Latte introduced the first decaf RTD iced coffee to supermarket shelves, unlocking new consumption occasions for caffeine-conscious consumers.
Core 330ml (Café Latte, Caramel Latte) and 1L take-home cartons remain top performers, while functional SKUs achieve comparable rates of sale despite narrower distribution (Retailer EPOS data).
To help retailers maximise sales, Taylor advises offering a balanced range spanning indulgence, functionality, on-the-go single serves, and take-home formats. On navigating evolving consumer expectations, Taylor notes: “Striking the right balance between quality, innovation and affordability is key to driving long-term category growth.”
Tailoring fixtures to store missions, such as front-of-store placement for food-to-go, helps drive impulse purchases. This strategy has helped Arctic Coffee secure the highest loyalty and purchase frequency rates in the RTD iced coffee category (Retail Loyalty Data and Kantar Worldpanel Online to 22.02.26).
Taylor reinforces the brand’s overarching mission: “At Arctic Coffee, we pride ourselves on creating a range that offers a coffee for everyone.”
Instant coffee dominates the UK coffee sector, accounting for 76% of all in-home cups consumed (NielsenIQ, 52 w/e 11 July 2026), while specialties and mixes are driving rapid expansion, worth over £252 million (NielsenIQ, 52 w/e 18 April 2026) with an 8% year-on-year increase (NielsenIQ, 52 w/e 11 July 2026).
According to Maria Kabalyk, Head of Category & Shopper at JDE Peet’s, the shift toward elevated, versatile options is accelerating: “The Kenco Iced/Hot range directly addresses growing demand driven by viral trends, appealing directly to the younger generation’s desire for on-the-go refreshment. By offering delicious new flavours in a convenient format, and bringing this innovation to market with exceptional speed, we’re empowering retailers to capitalise on the growing consumer desire for a wider range of high-quality, convenient coffee choices.”
Iced coffee is a weekly staple for 33% of under-35s (Allegra, Jan 2025), who favour iced lattes over cappuccinos out of home (Allegra, 2026).
Kenco and Maxwell House hold a 20.9% value share of the frothy coffee category (NielsenIQ, MAT to 29 Nov 2025), while the Kenco Iced/Hot range attracted 1.28 million new buyers over the past year (NielsenIQ, 15 July 2025).
JDE leads single-serve drinks with a 40.3% value share (NielsenIQ, 52 w/e 29 Nov 2025), led by Tassimo (50.7% share) and L’OR capsules, which surged +27.4% in value (NielsenIQ, MAT to 27 Dec 2025). To target changing habits, JDE Peet’s introduced Kenco Espresso Concentrate (Unsweetened, Mocha, Caramel) and Kenco Matcha Latte (Vanilla, Strawberry).
On capturing premiumisation trends in-store, Kabalyk notes: “Shoppers are increasingly drawn to the coffee ritual, eager to be their own barista at home. This shift means shoppers expect an elevated experience from the entire coffee journey, not merely the beverage itself.”
In the UK coffee market, consumers increasingly prioritise both quality and convenience. Driven by a maturing coffee culture, at-home baristas are paying closer attention to origin, quality, and blend crafting. Brands utilising high-grade 100% Arabica beans play a central role in educating shoppers and elevating coffee to a level of appreciation comparable to fine wine.
Demonstrating strong market positioning, illy ranked #38 across all FMCG brands in the UK’s 50 most successful growth brands for 2025, securing the spot as the number one Italian coffee brand in the ranking. To cater to busy lifestyle demands without compromising quality, illy launched its illy On The Go bean-to-cup self-service coffee bars, aiming for 1,000 placements over five years. This move taps into the global self-serve coffee bars market, which was valued at nearly £4.8 billion in 2024 and is projected to reach nearly £7 billion by 2029 (Source: The Business Research Company).
Marcello Canetti, Managing Director UK & IE at illy, emphasises the brand’s approach to convenience and product strategy: “Consumers are looking for coffee they can easily grab on the go – without any compromise on quality. The illy name will give both consumers – and our retail and foodservice partners – confidence that their coffee will always be of a barista-level quality, whatever the format.”
Rather than chasing transient flavour trends or adding functional extras like fibre or protein, illy focuses on classic, traditional serves across its ready-to-drink (RTD) range—including Cold Brew Classico, Cold Brew Cappuccino, and Cold Brew Latte Macchiato.
Canetti notes: “While faddy flavours may gain headlines, classic, premium Italian coffee has the long-term advantage. We believe traditional serves will only gain importance as consumers feel confused by ever more complex menus and flavour combinations.”
Highlighting the inherent health benefits of 100% Arabica coffee, such as naturally lower caffeine levels, gut health support, and cognitive benefits, Canetti reinforces illy’s core philosophy: “For us, coffee needs no improvement.”
The UK ready-to-drink (RTD) iced coffee sector offers significant growth headroom, driven by total volume growth in dairy drinks of +3.8% year-on-year (NIQ, 52 w/e 14 June 2026) alongside a relatively low household penetration rate of 30.2% (NIQ, 52 w/e 11 July 2026). Growth in the segment is shifting toward purposeful choices combining café-quality taste with functional credentials such as protein, lower sugar, and convenience.
As Georgia Lightbody, Senior Brand Manager at Emmi Caffè Latte, notes: “The key is that consumers don’t want health to come at the expense of enjoyment. The opportunity for the category is therefore to deliver better-for-you choices that still feel satisfying and indulgent while continuing to deliver the great coffee and taste consumers expect.”
Emmi Caffè Latte demonstrates strong portfolio performance across key need states.
Driven by a broad +42.8% year-on-year segment surge (Nielsen, w/e 11 July 2026), Emmi Caffè Latte High Protein achieved +57.6% value growth (Nielsen, w/e 11 July 2026).
Emmi Caffè Latte Skinny remains the range’s top SKU, delivering 27% of overall sales (Nielsen, w/e 11 July 2026), supported by lower-sugar options expanding at +8.7% (Nielsen, w/e 11 July 2026).
To recruit new shoppers across diverse meal occasions, Emmi expanded into functional NPD with its Protein Chocolate Cappuccino (330ml) and the upcoming launch of Emmi Caffè Latte Vanilla (230ml).
Addressing the importance of location-based strategy and occasion-led merchandising, Lightbody explains: “Retailers should think about shopper missions rather than simply the category fixture. Making the category visible and easy to shop around these occasions can help retailers recruit new shoppers and increase frequency.”
Lightbody emphasises cross-merchandising partnerships, such as listing Emmi Caffè Latte Zero within the Tesco Meal Deal, to maximise visibility: “Ultimately, the opportunity is to make RTD iced coffee easy to discover, easy to understand and relevant to more everyday occasions.”
Emmi CAFFÈ LATTE is expanding its premium ready-to-drink portfolio with the launch of Emmi CAFFÈ LATTE Vanilla, bringing one of the world’s most enduringly popular flavours to the chilled coffee aisle. The new 230ml ready-to-drink coffee combines premium 100% Arabica coffee with fresh Swiss milk and a smooth vanilla flavour, made with 100% natural ingredients.
Vanilla continues to have broad and enduring appeal, offering a familiar and comforting flavour that works particularly well in coffee. As consumers increasingly look to recreate the café experience at home or on the go, there is an opportunity for brands to offer familiar flavours in premium, convenient formats that deliver on both taste and quality.
At the same time, the ready-to-drink coffee category continues to evolve, with consumers looking beyond traditional coffee flavours for more varied and indulgent experiences. Vanilla offers a natural extension to the Emmi CAFFÈ LATTE portfolio, bringing a new flavour dimension to the brand while retaining the premium coffee credentials and convenience that consumers know and love.
Lightbody adds: “We know consumers are increasingly looking for variety and excitement within ready-to-drink coffee, but they still want the quality and great taste that they associate with the café experience.
“Vanilla felt like a natural addition to the Emmi CAFFÈ LATTE range. It’s a flavour with enduring appeal that pairs beautifully with coffee, while giving consumers something a little more indulgent to enjoy as part of their everyday routine.
“We’ve stayed true to the ingredients that define Emmi CAFFÈ LATTE, combining premium 100% Arabica coffee with fresh Swiss milk and using 100% natural ingredients. The result is a smooth, creamy vanilla coffee that delivers the premium café-inspired experience consumers expect from us, in a convenient ready-to-drink format.
“The launch also gives retailers an opportunity to bring newness and variety to the chilled coffee fixture, attracting shoppers looking for premium flavour experiences while building on the strength of the Emmi CAFFÈ LATTE brand.”
The launch forms part of Emmi CAFFÈ LATTE’s ongoing innovation strategy, which continues to evolve the portfolio in response to changing consumer preferences. Following the successful introduction of Zero and High Protein, the addition of Vanilla further broadens the range, giving consumers another way to enjoy a premium café-inspired coffee throughout the day.
Despite economic pressures, the UK hot beverages sector sees high consumer spend, with £8.93bn spent out of home (Worldpanel by Numerator, 52 w/e 14 June 2026) and over £1.85m in UK grocery retail (NIQ, 52 w/e 16 July 2026). Taste is now a top-three purchase driver for 52% of coffee drinkers (Worldpanel by Numerator, 52 w/e 14 June 2026).
While milk-based coffees remain foundational, significant momentum stems from cold formats.
RTD iced coffee is heavily favoured by younger demographics; 80% of 25–34-year-olds bought an RTD coffee in the past year (Lincoln & York, 2025), supported by 42% of beverages being bought to-go (Allegra, 2026).
Lincoln & York research shows social media influences 53% of 18–24-year-olds’ cold coffee choices (Lincoln & York, 2026).
Regarding the visual appeal driving younger consumers, Richard Milner, Category Insight Manager at Lincoln & York, notes: “Iced coffees, the layering, colouring, foams, endless variety and scope for innovation give them a vehicle to share their individuality and express themselves.”
Demand is surging for functional benefits; 58% of 18–24-year-olds would buy coffee with functional additions (Lincoln & York, 2026), leaning toward adaptogens and Lion’s Mane, while older demographics favour collagen and magnesium (Lincoln & York, 2026). To capture this growth, Lincoln & York introduced canned RTD coffee and a 500ml bottled coffee concentrate for home use.
Reflecting on retail collaboration and sector expertise, Milner emphasises: “Our experience, combined with the latest market data and consumer insight, means we have the perfect blend of knowledge to know what our customers need and what consumers want.”
He adds: “As consumer expectations around coffee continue to rise, there’s no better time to enlist the help of an expert coffee partner to make sure your coffee is consistently hitting the spot.”
Decaf and customisable formats represent the next major evolution in the ready-to-drink (RTD) iced coffee category. As consumer preferences shift toward mindful caffeine consumption, craft quality, and versatility, brands are innovating to address previous compromises in speed, taste, and functionality.
Addressing a distinct gap in the RTD fixture, Lost Sheep Coffee is launching its RTD Iced Decaf Latte, combining decaffeinated espresso-strength craft coffee with functional gut health benefits.
Stuart Wilson, Founder of Lost Sheep Coffee, highlights the innovation behind the range: “Decaf is the next big growth opportunity in iced coffee, yet the newly released decaf products in the RTD market are made using instant coffee powder or cold brew. We spotted a gap for a craft decaf iced coffee can made by real coffee roasters, using espresso strength coffee.”
Unlike conventional decaf offerings that rely on lower-grade beans or chemical processes, the brand utilises a sugar cane decaffeination method and hand-roasts in small batches.
Key product features include traceable craft coffee, hand-roasted, hot-brewed, and flash-chilled specialty-grade beans.
The brand is formulated with 4.5g of chicory root fibre per can to enhance creamy mouthfeel while supporting daily fibre intake.
It is free from instant coffee powder and artificial sweeteners.
Wilson emphasises the shift toward natural functionality and craft quality: “It’s true barista-quality – with depth, chocolate notes and a big mouth feel – while also tapping into growing demand for gut-friendly fibre and functionality.”
Beyond canned formats, coffee concentrates are surging as consumers seek at-home personalisation without sacrificing coffee-shop quality. Wilson notes that consumer priorities have evolved beyond single-serve constraints: “Concentrates are exciting because they put consumers back in charge. Make it strong, make it milky, pour it over ice, mix it into a smoothie or even a cocktail – one bottle does all of it. Less prescription, more personalisation.”
Twinings is rolling out a premium packaging refresh across its Green Tea and Infusions range, introducing individual string and tag teabags alongside more compact, easy-to-use packs designed to make drinking a cup of tea even more enjoyable.
Developed following consumer research and in-home testing, which highlighted the new packaging’s ease of use and premium feel, the update forms part of Twinings’ ongoing packaging innovation programme.
The blends, weight and number of teabags all remain unchanged, with the new packaging and tea bag designed to deliver the same great taste and quality in a format that enhances the everyday tea experience.
The refreshed packaging and tea bag was developed following consumer research and in-home testing with Green Tea and Infusions drinkers, with feedback helping to shape both the move to individual string and tag teabags and the updated box. Consumer insight highlighted the importance of easier storage and a more intuitive usage experience.
To reflect the everyday rituals of making tea, from taking a moment to prepare for the day ahead, to seeking a moment of calm, Twinings has introduced messages on its new tags. Each message is inspired by consumer insights and adds thoughtful and relatable detail to the tea drinking experience. The home compostable teabags – including the string and tag – can be disposed of through home compost or food waste collections, while the outer box remains recyclable.
Gill Close, Marketing Director for Twinings UK and Ireland, says: “We know enjoying a cup of tea is about more than what’s in the cup – it’s about the whole experience. That’s why this update has been developed with the full consumer experience in mind. Our more convenient, premium string and tag teabags make it even easier to enjoy a moment with Twinings, bringing a simple sense of ritual to every cup, while protecting the same blends, quality and taste people know and love.
“As Twinings continues to innovate across its tea and infusions portfolio, this latest refresh reflects our commitment to evolving our products in ways that matter to consumers and supporting our continued leadership in Green Tea and Infusions.”
The rollout builds on a series of recent packaging innovations across the Twinings portfolio, including the introduction of Accessible QR (AQR) codes, as Twinings continues to evolve its packaging to enhance convenience, accessibility and the overall consumer experience.
Leading herbal tea brand, Pukka Herbs, is expanding its wellness offering with two new functional blends, Gut Health and Unwind, designed to support consumers’ everyday wellness rituals. The new products have an RRP of £4.99.
The launch taps into growing consumer demand for everyday functional wellness drinks (Kantar) and seeks to bring trending ingredients to the tea aisle. With 70% of shoppers trying to lead a healthier lifestyle and half of UK soft drinks shoppers preferring drinks with health benefits over supplements, the new product launches address a market gap for accessible, great-tasting functional wellness teas, presenting kombucha-tasting and nootropic-infused products in a convenient tea bag format.
Pukka’s new Gut Health blend taps into the number one functional drink driver, with Gut Health now tied as the number one claim proven to prompt trial of a new beverage (33%, Vypr). It features a unique flavour combination of warming ginger and cooling peppermint, brightened with a touch of naturally fermented kombucha, offering a lively and refreshing taste.
The new Unwind blend is crafted to support a state of normal mental relaxation. It combines chamomile with blueberry, adaptogenic ashwagandha, and nootropic lion’s mane, creating a fruity cup of calm.
These new product launches offer health benefits that attract wellness-motivated shoppers and taps into the growing share of digestion and relaxation benefit need states, which already makes up 34.5% of all functional fruit and herbal tea sales (Nielsen).
Elle Barker, CMO, UK & Ireland, LIPTON Teas and Infusions, says: “These functional wellness blends are a natural fit for our current Pukka portfolio, designed specifically to meet evolving consumer preferences and bring a refreshing perspective to everyday wellness. By bringing highly sought-after, trending ingredients into an accessible, delicious format, we’re making it easier than ever for people to take charge of their own wellbeing while helping our retail partners drive excitement and growth in the tea aisle.”
As with all Pukka teas, both blends support trade sustainability commitments. Each pack contains 20 individually wrapped and 100% home compostable tea bags, with fully recyclable outer packaging made from FSC certified materials. The home-compostable tea bags feature organic string that is stitched rather than glued. Both blends are also organic and fair trade certified according to the Fair for Life standard.
The new Gut Health & Unwind range will be supported within Pukka’s wider ‘Nothing Beats Nature’ campaign across PR, social and digital channels.
Comments are closed.