How much is the UK iced coffee category worth?
The UK RTD iced coffee category is now worth £321m*, and it continues to grow at pace. It’s a really dynamic space, with more shoppers entering the category and increasing their purchase frequency as iced coffee becomes part of everyday routines.
Is the market in growth and what is driving that growth?
Yes, the category is in strong growth, up +14.3% in value and +10.7% in volume*. That’s being driven by convenience, indulgent coffee-shop-style flavours, and continued innovation. We’re also seeing more consumers integrating iced coffee into different parts of their day, which is expanding occasions beyond just the morning. As consumption broadens, there’s increasing demand for options that suit different needs — including lower calorie, functional, and caffeine-free choices.
How is Arctic Coffee performing?
Arctic Coffee continues to perform really well. The brand is now worth £31m RSV and holds an 18.2% volume share*, making it the number two brand in RTD iced coffee. We’re also seeing strong momentum in take-home formats and innovation-led growth, showing that our focus on accessible, great-tasting products is resonating with shoppers.
What makes Arctic Coffee unique?
What sets Arctic Coffee apart is the balance we strike between great taste and great value. Our products are made with fresh British milk at our creamery in Devon, and we focus on delivering high-quality iced coffee at an accessible price point. As an independent brand, we’re also able to move quickly and respond to emerging shopper needs, which is key in such a fast-moving category.
What are the key consumption occasions for iced coffee?
Iced coffee is definitely a year-round category, but it really comes into its own during the warmer months. That said, we’re increasingly seeing it consumed across the whole day — from a morning pick-me-up to an afternoon refreshment, or even as a lighter alternative to hot drinks. As consumption occasions broaden, particularly into later afternoon and evening, some consumers are looking for ways to enjoy iced coffee without the caffeine, which is helping to shape innovation in the category.
What are the key trends influencing the iced coffee sector?
Innovation continues to drive the category, we’re seeing growing interest in balanced and lifestyle-led choices, including lower sugar, lower calorie, and caffeine-moderation options. Consumers want flexibility — the ability to enjoy iced coffee at different times of day without compromising on taste. This shift, alongside demand from health-conscious shoppers and younger consumers, is creating new opportunities for brands to expand the category.
What does the future hold in store for the iced coffee sector?
The outlook for iced coffee is very positive. We expect continued growth driven by flavour innovation, expansion of take-home formats, and products that cater to broader consumption occasions. As iced coffee becomes more embedded in everyday routines, there’s also clear opportunity for products that offer choice — including caffeine-free options — allowing shoppers to enjoy the category throughout the day.
What NPD do you have at the moment?
We’re really excited to be launching Arctic Decaf Café Latte, a category-first product that responds directly to growing demand for caffeine-free options. The launch offers the same great Arctic taste consumers love, but without the caffeine — ideal for those who want to moderate their intake or enjoy iced coffee later in the day.
It also taps into wider trends around lifestyle choices and health-conscious consumption, with the product offering fewer than 150 calories per 330ml serving, low fat, no added sugar, and a good source of protein. With decaf options currently limited in the ready-to-drink iced coffee category, this launch helps expand choice for shoppers and opens up new consumption occasions.
What kind of marketing support is backing the brand this year?
We’ve got strong support behind the brand this year, including a digital-first marketing campaign and partnerships with key influencers who love Arctic Coffee. We’re also investing in YouTube, Spotify and OOH advertising, alongside sampling at major festivals this summer. In-store activity and retailer collaborations will further drive visibility, and we’ll also be celebrating 10 years of Arctic Coffee with a range of activity throughout the year.
What are the brand’s biggest products in the grocery channel?
Our best-performing products in grocery are the single-serve Caramel Latte and Latte, alongside the 1L take-home versions of both flavours. We’re also seeing growing demand for Double Shot and our Protein Caramel Latte, which are becoming firm favourites with shoppers.
How do you work with multiple retailers to grow sales?
We work closely with retailers to support category growth through in-store activation, strong seasonal POS, and sharing range and category insights to help them stock the right products. We also amplify new listings across our social channels and collaborate on digital activity. By aligning around key seasonal moments — particularly the summer peak — we can drive visibility, trial and ultimately sales across multiple retailers.
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