Market Trends of United Kingdom Ready-to-Drink (RTD) Coffee Industry
This section covers the major market trends shaping the UK Ready-to-Drink (RTD) Coffee Market according to our research experts:
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 carrying a beverage on the go, coupled with the convenience of the product, is catering to further market growth. Along with sufficing as a refreshment, 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 of the United Kingdom, consumer spending on non-alcoholic beverages increased from GBP 11,632 million (USD 14158 million) in 2020 to GBP 12,182 million (USD 14826 million) in 2021 in the United Kingdom. Moreover, ready-to-drink non-alcoholic beverages are showing an upsurge in the market, owing to consumers' busy lifestyles and added convenience. Additionally, consuming coffee in the workplace or the mid-day as a refreshment is observed in the region, resulting in increased sales of ready-to-drink coffee products across the region.
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Supermarkets/Hypermarkets Segment Holds the 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 the potential to stock variants of coffee from companies that 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 numbers.
- Moreover, the offers and loyalty programs these stores offer make the customers regularly purchase, leading to increased customer loyalty. For instance, Tesco, a leading supermarket chain in the United Kingdom, provides loyalty cards to customers, letting them earn one loyalty point for EUR 1 (USD 1.08) on offline and online purchases.
