MILAN – The UK ready-to-drink (RTD) coffee market, currently valued at US$292.0 million as of 2023, is poised for robust growth, projected to reach an impressive market valuation of US$ 528.3 million by 2032, according to a new report from Astute Analytica. This growth reflects a steady compound annual growth rate (CAGR) of 6.81% over the forecast period from 2024 to 2032.
The RTD coffee market is thriving as consumers increasingly opt for convenient, high-quality coffee products that cater to on-the-go lifestyles.
Demand is further fueled by an expanding array of premium and innovative options, from cold brews to dairy-free and functional beverages, meeting evolving consumer preferences.
The growth in this market aligns with broader shifts in the beverage industry, where RTD formats are rapidly gaining traction. This trend is largely driven by younger consumers, who prioritize convenience without compromising on quality and taste. As a result, major brands and new entrants alike are investing in product innovation, sustainable packaging, and marketing strategies aimed at capturing the attention of health-conscious, environmentally aware consumers.
The modern urban lifestyle in the UK significantly drives the growth of the ready to drink (RTD) coffee market. With over 83% of the UK population residing in cities, the hustle of urban life leaves little time for traditional coffee brewing. Studies indicate that UK workers have some of the longest commuting times in Europe, averaging nearly an hour each day.
This has led to a surge in demand for convenient, on-the-go beverage options that fit seamlessly into busy schedules. The proliferation of convenience stores and supermarkets, totalling over 46,000 and 11,000 respectively, provides widespread access to RTD coffee products. Retailers have reported increased foot traffic during morning hours, with sales data showing significant spikes in RTD coffee purchases during these times.
The ease of availability, coupled with the immediate gratification that RTD coffee offers, makes it a staple for many on-the-move consumers.
Additionally, technological advancements have contributed to this driver. The rise of contactless payments and mobile ordering apps has streamlined the purchasing process, reducing transaction times. Delivery services have also expanded their offerings to include RTD beverages, with companies like Deliveroo and Uber Eats reporting millions of beverage deliveries in 2023.
This synergy between consumer lifestyle and technological convenience cements the role of RTD coffee in meeting the demands of the UK’s fast-paced urban environments.
