Coffee concentrate is becoming more commercially relevant as cold coffee demand continues to grow across both retail and foodservice. What makes the format stand out is not just its link to category growth, but the fact it can solve different needs depending on where it’s sold.
For buyers, brand teams and operators, that flexibility is a big part of what’s driving interest. Coffee concentrate can support at-home convenience in retail, while also delivering speed, consistency and efficiency in hospitality. Rather than being tied to one use case, it can work across both.
In brief
- Coffee concentrate is gaining traction across both retail and foodservice.
- Bottled concentrate can support retail and at-home consumption.
- Bag-in-box can support speed, consistency and efficiency in hospitality.
- The format is commercially relevant because it combines convenience with flexibility.
Why is coffee concentrate becoming more relevant?
Coffee concentrate is gaining traction and is part of a wider shift in how consumers are engaging with cold coffee.
Our latest data shows iced coffee value at £365m in the latest year, up 26% vs. last year, with a quarter of value growth coming from new consumers. Bespoke research for Lincoln & York also points to narrowing seasonality in cold coffee consumption, with 40% of coffee drinkers claiming the weather does not impact when they purchase cold coffee highlighting that the opportunity is no longer tied to summer alone.
That matters because it creates room for more than one type of cold coffee proposition. As consumers become more familiar with chilled coffee and more open to convenient formats, concentrate starts to make sense in a wider range of settings.
It also helps that concentrate-style products are already familiar in other categories. The idea of diluting a product at home is not a difficult one for consumers to understand, which makes bottled coffee concentrate a more accessible retail proposition than it might once have been.
Why does concentrate make sense in retail?
In retail, coffee concentrate fits well with how consumers are increasingly making drinks at home. It offers a format that feels simple, flexible and easy to use, without the need for specialist equipment.
Bottled coffee concentrate, in particular, gives consumers a straightforward way to make cold coffee at home and adjust strength or serve style to suit their preferences.
Key advantages in retail include:
- At-home convenience: simple dilution with milk or water
- Accessibility: no need for brewing equipment
- Flexibility: can be used for different drink styles, from iced coffee to lattes
- Category expansion: gives retailers a way to broaden their cold coffee offer
- Familiarity: taps into a format consumers already understand from other concentrate categories
For retailers, that makes concentrate a practical way to respond to cold coffee growth while offering something different from standard RTD cans and bottles.
Why does concentrate make sense in foodservice?
In foodservice and hospitality, the appeal of coffee concentrate is more operational. Speed, consistency and efficiency all matter, especially in busy environments where drinks need to be served quickly and reliably.
Bag-in-box coffee concentrate is particularly well suited to this. Lincoln & York’s proposition is a 3L format with simple tap dispense, 1:4 dilution, and enough product for 75 x 40ml servings or 60 x 50ml servings. For hospitality this format offers additional benefits such as portion control, reduced waste and versatility due to its suitability for iced drinks and coffee cocktails.
Key advantages in foodservice include:
- Speed of service: faster preparation than traditional brewing during service
- Consistency: more controlled flavour and strength across serves
- Reduced waste: better control over usage
- Portion control: more predictable serving sizes and cost management
- Menu versatility: suitable for iced drinks, cocktails and other cold serves
For operators, that can mean smoother service, less complexity during busy periods and more consistent results.
Channel comparison
| Channel | Format | Why it fits |
| Retail | Bottled concentrate | Supports at-home convenience and accessible cold coffee consumption |
| Foodservice / hospitality | Bag-in-box concentrate | Supports speed, consistency and operational efficiency |
This distinction is important. While the core idea is similar, the format and use case need to match the channel.
What should brands and operators consider?
For brands and operators considering coffee concentrate, the right approach depends on how and where the product will be used.
Some of the most important things to think about are:
- where the product will be sold
- how the end consumer or operator will use it
- whether convenience or operational efficiency is the bigger priority
- how much flexibility is needed in the final drink
- storage, packaging and distribution requirements
- the likely scale of rollout
In many cases, the decision is not about whether concentrate is right in general, but which concentrate format is the best fit for the channel. Some businesses may even look at more than one format if they are serving different routes to market.
Conclusion
Coffee concentrate is gaining traction because it offers more than trend relevance. It brings practical commercial advantages across both retail and foodservice, which makes it a flexible option in a growing category.
As cold coffee continues to evolve, formats that can adapt to different environments are likely to become more important. Coffee concentrate is well placed to be one of them.
If you’re considering coffee concentrate for retail or foodservice, get in touch to discuss the right approach for your proposition.
