Cold coffee is becoming a more important category for UK brands and retailers. From our perspective at Lincoln & York, it’s no longer just a seasonal add-on. It’s becoming a more established part of the market, and one businesses should be planning for.
That shift is showing up in the numbers as well, as data shows that iced coffee continues to
grow ahead of the market, with value sales at £365m, up 26% versus last year, and volume up 16.4% over the same period.
In brief
- Cold coffee is becoming a more significant category for UK brands and retailers.
- Growth is being driven by younger consumers, convenience and changing drinking habits.
- The opportunity now spans multiple formats across retail, hospitality and ready-to-drink coffee.
Why is cold coffee growing in the UK?
Cold coffee is growing because coffee habits are changing. Consumers are looking for formats that feel more convenient, more flexible and better suited to different moments in the day. You can see that in the audience profile too. Client research says iced coffee is now the most popular coffee order for UK consumers under 25, while over 50% of 18–24-year-olds say they always or often buy it. It also shows that around 80% of 25–34 year-olds have bought RTD coffee in the past year.
A few things seem to be driving that shift:
- Younger consumers are more open to iced coffee and RTD coffee, and more likely to buy coffee across different occasions.
- Convenience matters more. Client research shows 40% of beverages are now purchased to go, while 37% of 18–34-year-olds regularly or occasionally order via app.
- Wider familiarity is helping cold coffee move from an occasional purchase to something more routine.
- Seasonality is narrowing, with 40% of coffee drinkers claiming the weather does not impact when they drink cold coffee, which suggests the category is becoming less tied to summer alone.
Cold formats fit naturally into that shift. Whether that means coffee concentrate in bottles or bag in box for`mat or RTD canned coffee, they give brands and retailers different ways to respond to demand that now feels broader, more habitual and less seasonal than it once did.
What does this mean for brands and retailers?
For brands and retailers, cold coffee is no longer just an optional extension. It’s increasingly becoming part of the expected offer.
Consumers are looking for coffee products that fit more naturally into their day, whether that’s a ready-to-drink coffee for on-the-go consumption or a coffee concentrate they can prepare at home. That’s changing how ranges are being built across both retail and out-of-home.
Commercially, this is about more than simple substitution. Cold coffee can open up new consumption occasions, attract different audiences and sit alongside existing coffee products rather than replace them.
It also means format choice matters. The difference between cold coffee concentrate, bottled coffee concentrate and RTD canned coffee has a direct impact on channel fit, operational practicality and the kind of proposition a business is trying to build.
Which cold coffee formats are gaining traction?
Cold coffee is no longer a one-format category. It now spans multiple formats, each suited todifferent commercial environments and use cases.
| Format | Typical fit | Commercial relevance |
| Bag-in-box coffee concentrate | Hospitality / foodservice | Speed, consistency and operational efficiency |
| Bottled coffee concentrate | Retail | At-home convenience and growing consumer familiarity |
| RTD canned coffee | Larger brands / retailers | Grab-and-go appeal and greater product flexibility |
Bag-in-box is particularly relevant for hospitality, where speed, consistency and ease of service
matter. Its 3L format, simple tap dispense and 1:4 dilution make it well suited to fast-paced
out-of-home environments.
RTD cans sit at the other end of the spectrum, offering a ready-to-drink format that is better
suited to larger retailers and established brands looking for grab-and-go appeal.
What should brands be thinking about now?
Brands exploring cold coffee should start with a clear view of how the product will be used and where it will sit in the market.
That means thinking carefully about:
- who the product is for
- where it will be sold
- which format best suits the proposition
- how the product will be used in practice
- how the launch fits wider category demand
A coffee concentrate designed for retail will serve a different purpose to a bag-in-box cold brew concentrate used in hospitality, while RTD canned coffee usually calls for a different level of scale and investment.
From our experience, the strongest propositions are the ones that reflect how consumers are already engaging with the category, rather than treating cold coffee as a single opportunity with a single route to market.
Conclusion
Cold coffee is becoming a more defined and commercially important part of the UK coffee market. The growth of iced coffee, cold coffee concentrate and RTD coffee points to a category that’s broadening out, attracting new consumers and becoming less tied to seasonal spikes.
For brands and retailers, the opportunity lies in responding to that shift with the right format and a clear understanding of how the category works in practice.
Get in touch to discuss white-label cold coffee opportunities.
