Hot beverages and ready-to-drink (RTD) cold coffee growth is being driven by shifting consumer lifestyles favouring on-the-go convenience, the mainstreaming of iced and cold-brew coffee as year-round choices, and rising demand for premium, barista-style experiences replicated at home.
Busy urban routines and hybrid working habits increase the need for instant, zero-preparation caffeine fixes.
Iced coffee has transitioned from a seasonal summer purchase into a staple consumed year-round, heavily spearheaded by Gen Z and millennial demographics.
Sales of at-home coffee mixes, syrups, and concentrated formats allow shoppers to recreate specialty lattes, cappuccinos, and cold brews without visiting a coffeehouse.
Rising health consciousness fuels demand for plant-based, dairy-free, lower-sugar, and protein-enriched functional formulations.
Introduction of diverse flavour profiles (such as caramel, vanilla, and matcha) alongside ethical sourcing and specialty branding attract adventurous, social-media-savvy consumers.
The UK coffee market continues to thrive, now valued at over £1.8 billion with total category growth of +8.2% RSV [NielsenIQ, 2025]. With over 24 million UK households purchasing coffee, retailers and wholesalers have a significant opportunity to capitalise on evolving shopper habits [NielsenIQ, 2024].
Under-35s are heavily driving the RTD and iced coffee surge, with 33% drinking iced coffee weekly compared to 17% of over-35s [Allegra, 2025]. Out of home, iced lattes have surpassed cappuccinos in popularity among younger consumers, who actively seek convenience and flavour experimentation [Allegra, 2026].
“By offering delicious new flavours in a convenient format, and bringing this innovation to market with exceptional speed, we’re empowering wholesalers and retailers to capitalise on the growing consumer desire for a wider range of high-quality, convenient coffee choices,” comments Maria Kabalyk, Head of Category & Shopper, JDE Peet’s.
With 49% of consumers visiting coffee shops less to save money [NIQ Panel, 2024], shoppers are trading up to replicate café experiences at home.
The Specialties & Mixes segment leads market momentum, now worth over £252 million [NIQ Scantrack, 2026]. JDE Peet’s specialties deliver +17.4% yearly value growth [NielsenIQ, 2025].
Instant coffee remains dominant, accounting for 76% of all in-home cups [NielsenIQ, 2025]. Over 9.4 million households choose Kenco instant products [JDE Data, 2023].
Pods & Capsules formats continue to expand, with JDE maintaining a 40.3% category value share [Nielsen, 2025].
Premiumisation remains a crucial growth driver, as 7 in 10 UK coffee drinkers are willing to pay more for quality [Engage Research, 2023]. Highlighting this trend, L’OR capsules surged 27.4% in value against the yearly average [NielsenIQ, 2025].
“The trend towards a more premium at-home coffee experience is clearly shaping shopper behaviour. Categories that deliver on this promise are seeing strong momentum, most notably the fast-growing pods and capsules segment,” adds Kabalyk.
To tap into these trends, JDE Peet’s introduced Kenco Espresso Concentrate in Unsweetened, Mocha, and Caramel variants.
“Kenco Espresso Concentrate is designed to tap into this behaviour, offering a flexible, easy-to-use solution that can be served over ice in the summer or enjoyed hot in the cooler months,” says Kabalyk.
As out-of-home coffee and bakery prices continue to rise, consumers are increasingly turning to retail and workplace solutions for affordable, café-quality alternatives without compromising on quality, provenance, or ethics.
Rising café prices are driving shoppers to trade up within retail for better whole bean, single-origin, and specialty-style blends that offer an everyday indulgence at a lower cost per cup.
Environmental pressures and low farm incomes put global coffee production under strain, making trusted certifications like Fairtrade and B Corp status essential. Consumers now expect brands to actively secure the future of coffee farming.
While core formats like pods, beans, and instant remain dominant, health-conscious and younger demographics are exploring functional benefits such as added protein, lower sugar, and enhanced focus.
“With coffee shop prices continuing to rise, many consumers are recreating café-quality experiences at home or in the workplace, driving demand for premium retail coffee that offers quality without the café price tag,” comments Eleanor Morris, Out of Home Trade Marketing Manager, Cafédirect.
Wholesalers can maximise sales by curating ranges that balance trusted core lines with premium, ethically sourced options and functional innovations.
“For wholesalers, the opportunity is not necessarily to stock more products, but to build a range that reflects these evolving consumer priorities—balancing trusted household names with premium, ethical and differentiated options that offer retailers genuine choice,” adds Morris.
The recently relaunched Cafédirect Out of Home range—including popular options like House Espresso for bean-to-cup operators and 100% Arabica Espresso—combines commercial viability with positive social impact. Wholesalers can further drive value by offering tailored point of sale, barista training, menu development, and category insights.
“The strongest coffee ranges are supported by brands that help customers succeed long after the coffee has been delivered,” says Morris.
The ready-to-drink (RTD) coffee sector has expanded to a £335 million valuation [Kantar, 2025; NielsenIQ, 2025], driven by evolving consumer expectations for functional benefits, convenience, and flavour innovation.
Consumers increasingly view RTD coffee as a functional beverage that fits busy daily routines—from morning commutes to afternoon energy dips. Beyond standard caffeine content, functionality spans added nutrients, portion sizes, and packaging design.
Resealable 330ml bottles (e.g., Costa Coffee Latte) offer flex-drinking on the move, 250ml cans serve immediate impulse occasions, and 750ml bottles/multipacks address fridge-stocking needs.
Innovation combines caffeine with added benefits, such as Costa Coffee Double Shot + Caramel containing B vitamins for mental alertness.
“Protein, fibre and vitamins are becoming more common across food and beverage categories, and as it already has a strong functional association, RTD coffee is well placed to embrace that trend,” comments Kate Abbotson, Senior External Communications Manager, Coca-Cola Europacific Partners.
“Brands that recognise these different consumer need states, rather than treating functionality as a single trend, are likely to be better placed to meet evolving consumer expectations and support long-term category growth.”
Younger demographics treat RTD coffee as a year-round, multi-occasion beverage [Kantar, 2024], driving demand for playful and familiar flavour profiles.
44% of consumers report being influenced by relevant cultural partnerships [Dazed Media]. CCEP tapped into this with the limited-edition Costa Coffee McVitie’s Jaffa Cake Frappé.
Formats drawing inspiration from desserts, like the Costa Coffee Creamy Tiramisu Frappé, deliver indulgent, lower-caffeine choices suited to treat occasions.
“Consumers are increasingly looking for flavours that feel both new and familiar. They enjoy discovering something different, but they’re much more likely to try it when it’s inspired by flavours, brands or cultural moments they already recognise,” adds Abbotson.
Despite household budget pressures, consumers continue to seek affordable, indulgent treats, driving steady growth across both ready-to-drink (RTD) coffee and flavoured milk segments.
Standing out as the UK’s fastest-growing mainstream RTD coffee brand among those valued over £1m [Nielsen DiscoverIQ, 2026], Barista is successfully attracting new buyers to the category. Flavour demand is led by Caramel Latte—caramel remaining the top choice among shoppers—alongside Caffè Latte.
Meeting consumer demand for premium chocolate drinks across hot and chilled at-home occasions, Chocomel has grown +6% year-on-year to reach a £10.3m retail value [NielsenIQ, 2026].
“The dairy drinks category is incredibly resilient and dynamic, currently valued at £991 million and growing at +11% year-on-year. Even with pressure on household budgets, shoppers continue to seek out affordable, indulgent treats, and our brands are perfectly positioned to meet this demand,” comments Bob Mulder, MD, FrieslandCampina.
Wholesalers can capitalise on burgeoning consumer demand for convenient iced coffee and indulgent beverages by ensuring their offerings feature the right formats, popular flavours, and clear value propositions. “Our Barista brand is the UK’s fastest-growing mainstream RTD coffee brand, attracting new buyers to the category. We’re also seeing fantastic results from Chocomel, which has grown +6% year-on-year to a £10.3m retail value,” adds Mulder.
“To maximise sales, wholesalers should focus on stocking a core range of best-sellers like YAZOO and Barista, ensuring they offer a variety of formats to meet different retailer and consumer needs. Embracing new product developments and stocking our proven PMP range will ensure they can provide their retail customers with the products that are guaranteed to drive growth.”
The UK cold coffee market is experiencing rapid expansion, driven by younger demographics, digital trends, and an increasing consumer preference for quality and self-expression.
Lincoln & York’s research reveals that 93% of 25- to 34-year-olds consume cold coffee, with 72% drinking it weekly. However, market adoption spans beyond Gen Z: the 35–54 age bracket holds the highest share of out-of-home iced coffee purchases, accounting for £141m of the £392.9m spent annually [Worldpanel, 2026].
Social platforms heavily influence purchasing choices, with 53% of 18- to 24-year-olds influenced by social media when picking cold coffee, and 10% driven to specific brands via online content.
“So, iced coffees, the layering, colouring, foams, endless variety and scope for innovation, give them a vehicle to share their individuality. What they are truly seeking is space and brands that embrace their individuality and provide opportunities for them to express themselves,” comments Richard Milner, Category Insight Manager, Lincoln & York.
While functional benefits like protein-infused coffee and GLP-1 weight-loss trends reflect growing health awareness, taste remains paramount—51.9% of consumers rank taste as the most critical purchasing factor. Furthermore, over 40% of cold coffee drinkers enjoy their beverages in cafés, with half willing to spend between £3 and £4 per drink.
“Quality is key, no matter what the occasion. From self-serve machines on forecourts to the most upmarket of independent coffee shops, wherever consumers are buying coffee, they are willing to invest in quality,” adds Milner.
Wholesalers can capture growth by offering a balanced range of core and trend-led products—such as RTD cans, bottled concentrates, and convenience-led formats—complemented by clear merchandising and coffee provenance storytelling.
“For wholesalers and cash-and-carry stores, the key to unlocking growth lies in stocking a balanced range, supported by simple but effective merchandising and a sharp focus on convenience-led formats,” says Milner. United Food Brands is doubling down on its ambition to build the next major RTD coffee brand, as it drives the national rollout of SIDES Coffee into more than 2,000 convenience stores through Bestway Wholesale, one of the UK’s largest and most influential wholesalers.
With a network of over 70 depots nationwide and access to more than 100,000 retail customers, Bestway provides SIDES Coffee with immediate national reach across the independent retail channel. The partnership gives United Food Brands the scale required to rapidly establish distribution, drive awareness and build velocity from launch.
“RTD coffee is no longer just about function, it is about brand, lifestyle and engagement,” says Richard Reeves, CEO of United Food Brands. “Our strategy is to back brands that can win culturally and execute commercially. SIDES Coffee does both.”
Built with YouTube collective The Sidemen, SIDES Coffee enters the market with a highly engaged audience, 93% of whom are over 18, with 60% male and a fast growing female following.
“Creator led brands are becoming a serious force in FMCG,” says Reeves. “When you combine that level of audience with the right retail execution, you unlock something very powerful.”
The brand’s first major convenience push will see it land across Costcutter, best-one, Central Convenience and Bargain Booze.
Central to the launch strategy is a Bestway-exclusive £2.25 price-marked pack (PMP), giving independent retailers access to a unique proposition not available through other wholesale routes. The exclusive PMP has been specifically designed to drive trial, accelerate rate of sale and provide retailers with a compelling value-led offer that resonates with today’s cost-conscious shoppers.
By partnering exclusively with Bestway on the PMP format, United Food Brands is creating a clear point of difference for Bestway customers, helping retailers stand out in a competitive category while benefiting from the strength of The Sidemen brand and a highly engaged consumer audience.
The PMP format sits across three core SKUs, Sub Zero Vanilla, Ice Cold Original and Gold Rush Caramel, with pricing built to balance accessible indulgence with strong retailer margins.
The launch is backed by a £1m marketing investment, delivered by UFB’s marketing partner, COLLAB. Activity will include nationwide sampling, influencer activation and geo-targeted digital campaigns designed to convert The Sidemen’s audience into in-store purchases.
The focus will be on sustaining momentum through continuous innovation, strong in-store execution and alignment with evolving consumer trends.
As RTD coffee continues to evolve, United Food Brands is focused on scaling brands that can deliver both cultural relevance and commercial performance.
Through targeted distribution, disciplined pricing strategies and a committed innovation pipeline, the business is positioning itself to lead the next phase of growth in the category.
Despite rising prices across the UK coffee sector, consumers are not shifting away from premium products; instead, they are exercising greater scrutiny and seeking clear justification for their spend.
Consumers are willing to pay more when added value is visible. Signature drinks, cocktail-inspired techniques, and premium presentation allow venues to justify higher price points effectively.
Coffee is increasingly recognised as a health drink due to its natural dietary fibre and polyphenols. Demand is rising for functional additions such as collagen, turmeric, plant-based milks, and lower-sugar options. Cold coffee remains a major growth engine, transitioning from standard iced lattes into a versatile platform for signature innovation. For example, Volcano Coffee Works’ Cold Coffee Concentrate has become its fastest-growing product, aiding restaurants in delivering menu consistency.
“Consumers are still willing to spend, but they increasingly expect a clear reason to do so. Customers don’t mind paying more when they can clearly see, taste and experience why they’re paying more. The opportunity for cafés isn’t cheaper coffee – it’s about making premium feel accessible to more people,” comments Emma Loisel, Executive Chair, Volcano Coffee Works.
Focusing on core quality rather than fleeting trends has enabled Volcano Coffee Works to achieve 30% year-on-year growth. Rather than competing strictly on price, roasteries and wholesalers build long-term commercial value through comprehensive support—including equipment, barista training, seasonal menu development, and operational guidance.
“We’ve grown 30% year on year and that growth hasn’t come from chasing every emerging trend, but from focusing on quality underpinned by a clear focus on the business of coffee,” adds Loisel.
“Looking at the broader category, it’s important that roasteries don’t compete on price, but compete on value. Our industry sometimes mistakes the things that create quality for the things consumers actually value.”
Galbani Professionale celebrated the rise of dessert inspired coffee serves with National Tiramisu Latte Day, putting the spotlight on the Tiramisu Latte as a premium yet practical menu opportunity for coffee led operators.
The Tiramisu Iced Latte combines indulgent iced coffee with familiar dessert flavours, offering operators a premium, visually appealing serve that works within everyday café service. With 74% of Gen Z consumers preferring iced coffee over hot options, and with 68% now viewing specialty iced coffees primarily as “desserts or treats” rather than just a morning caffeine source. This taps directly into evolving consumer demand for indulgent, treat-led beverages.
At the centre of National Tiramisu Latte Day is a partnership with Nonna Bakery (High Holborn, London), where the Galbani team will serve two iced Tiramisu Latte specials designed to deliver consistency in a real café environment – Classic Iced Tiramisu Latte and Pistachio Iced Tiramisu Latte.
Both recipes hero Galbani Mascarpone, delivering the rich, creamy texture associated with classic tiramisu while supporting a smooth, premium iced coffee serve that works in day to day service.
Galbani Professionale has also developed a Tiramisu Latte Toolkit to help extend participation even further. Designed for day-to-day use, it enables operators to easily test, list and promote a tiramisu latte-style drink with minimal disruption to service, while still delivering the creamy texture and premium finish customers expect. It also opens up the opportunity for more cafés to get involved.
Héloïse Le Norcy-Trott, Group Marketing & Category Director at Lactalis UK & Ireland, says: “Coffee menus are more competitive than ever, and operators are under increasing pressure to refresh drink specials while maintaining speed and consistency. National Tiramisu Latte Day is about showcasing a drink format that feels current, clearly indulgent and – crucially – works operationally in a busy café environment.”
Galbani is proud to support its charity partner, Anthony Nolan. Galbani matched all sales profits from the Tiramisu Latte, donating the funds directly to its charity partner.
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