Ready-to-Drink (RTD) Coffee & Tea - United Kingdom

The Ready-to-Drink (RTD) Coffee & Tea market in United Kingdom has experienced significant growth in recent years.

Customer preferences: One of the key factors driving the growth of the RTD Coffee & Tea market in United Kingdom is the changing consumer preferences. With the increasing popularity of on-the-go consumption and busy lifestyles, consumers are seeking convenient and portable beverage options. Ready-to-Drink Coffee & Tea products provide a quick and easy solution for consumers who want to enjoy their favorite beverages without the need for brewing or preparing them at home. Additionally, the growing health consciousness among consumers has also contributed to the demand for RTD Coffee & Tea products, as they offer a healthier alternative to sugary carbonated drinks.

Trends in the market: The RTD Coffee & Tea market in United Kingdom is witnessing several trends that are shaping its growth. One of the prominent trends is the introduction of innovative flavors and formulations. Manufacturers are constantly launching new and unique flavors to cater to the diverse preferences of consumers. From classic flavors like mocha and vanilla to more exotic options like matcha and chai, there is a wide variety of choices available in the market. Moreover, there has been an increasing focus on natural and organic ingredients, as consumers are becoming more conscious about the quality and origin of the products they consume. This trend is driving the demand for RTD Coffee & Tea products that are made from natural and sustainably sourced ingredients.

Local special circumstances: The United Kingdom has a well-established coffee culture, with a strong tradition of tea consumption as well. This cultural background has played a significant role in shaping the RTD Coffee & Tea market in the country. While coffee is typically associated with a morning pick-me-up, tea is often consumed throughout the day. This has led to the development of a diverse range of RTD Coffee & Tea products that cater to different consumption occasions. For example, there are products specifically designed for breakfast, afternoon tea, and evening relaxation. This variety of options allows consumers to choose the RTD Coffee & Tea products that best suit their preferences and needs.

Underlying macroeconomic factors: The growth of the RTD Coffee & Tea market in United Kingdom is also influenced by underlying macroeconomic factors. The country has a strong economy and a high disposable income, which enables consumers to spend more on premium and convenient beverage options. Additionally, the increasing trend of urbanization and the rise of coffee shop culture have contributed to the growth of the RTD Coffee & Tea market. As more people are living and working in urban areas, there is a growing demand for on-the-go beverages that can be consumed while commuting or during busy work schedules. This has created a favorable environment for the growth of the RTD Coffee & Tea market in United Kingdom.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.