October 4, 2024 – In the United Kingdom, consumers’ lifestyles and preferences are evolving toward convenience and refreshment, iced coffee has emerged as a more desirable drink for fitting seamlessly into busy routines while offering a satisfying energy boost and indulgence. Innova’s 360 research into iced coffee trends highlights the latest product launches, innovations, top flavors, and what may develop in the future within the iced coffee industry.
Iced Coffee Product Launch and Sales Trends
The United Kingdom has been the leading country for iced coffee launches and sales in Europe over the past year. Health-focused launches, including vitamin/mineral-fortified options with guarana, taurine, and vitamins for energy, alertness, nervous system support, and immune health, are driving new product development in the region.
The United Kingdom has displayed low innovation and high-value growth over the past two years. Iced coffee sales in the region have experienced a 22% CAGR growth over the past five years, higher than Europe’s 7% sales growth. The launches with limited edition claims in iced coffee display a growth rate of 83% CAGR in the United Kingdom over the past four years. Launches of toffee-flavored milk latte, Frappuccino in smores chocolate, and salted caramel brownie flavor have preserved consumer interest.
In the UK, 1 in 3 consumers are willing to consume 100% plant-based alternatives, driving a 25% rise in plant-based iced coffee options over the past year. Cold brews with oat, almond and soy milk, as well as coconut milk cappuccinos and oat lattes, are leading this innovation. This aligns with Innova’s annual top trend of 2024, ‘Plant-Based: The Rise of Applied Offerings,’ where consumers are increasingly embracing plant-based versions of familiar food and beverage products.
Top Companies and Brands in the Iced Coffee Market
The iced coffee market in the United Kingdom and Europe is highly penetrated by both branded and private label companies. Private label companies have experienced significant growth in launches over the past year.
Arla is the top branded company in the United Kingdom, driven by its collaboration with Starbucks for iced coffee launches. Ethical-environment claims with FSC certifications, seasonal-Christmas holiday blends, and options in cross-category flavors like brownies and smores add significance to the company.
Other notable companies include Costa Coffee, Emmi, Aldi, and Crediton Dairy. These top 5 companies account for 47% of new product launches in the United Kingdom over the past year.
Claims and Positionings in the Iced Coffee Market
The top five claims in the United Kingdom iced coffee market are vegetarian, vegan, low/no/reduced calorie, and limited edition. Additionally, claims like vitamin/mineral fortified, no additives/ preservatives, plant-based, no added sugar, and gluten-free options are growing in popularity. This indicates that consumers are increasingly prioritizing health-conscious and sustainable options that align with their dietary needs in the iced coffee market.
Iced Coffee Flavor Trends
Caramel is the top flavor, followed by vanilla, hazelnut, salted caramel, and brownie. Caramel-flavored iced coffee launches have risen 8% over the past year.
Iced coffee trends research shows that 4 in 7 consumers across the United Kingdom prioritize flavor when buying iced coffee. This preference is reflected in the 28% CAGR growth of flavored launches in iced coffee over the past four years. Iced coffee options like Frappuccino, mocha, latte, macchiato, and cold brew in flavors such as caramel, vanilla, chocolate and nut varieties are driving new product development in the United Kingdom. These diverse flavor preferences highlight a rising demand for unique and indulgent taste experiences in the iced coffee category.
What’s Next in Iced Coffee Trends?
Iced coffee launches in the United Kingdom demonstrate a robust 14% CAGR growth over the past five years, driven by consumer interest in reductionism and sugar-related claims. This trend highlights a shift toward healthier options, with many consumers actively seeking products that are free from additives and preservatives. Brands can focus on plant-based offerings like cold brews crafted from oat, almond, and soy milk to gain attention among health-conscious consumers.
Consumers prioritize flavor when buying iced coffee, presenting opportunities for brands to innovate with indulgent taste profiles. Limited-edition flavors and unique combinations can enhance consumer interest, catering to diverse palates. As the demand for transparency and health-focused products continues to rise, brands are likely to develop iced coffee options that not only satisfy cravings but also align with consumers’ dietary preferences.
This article is based on Innova’s Overview of Iced Coffee in UK report. Find out more about this report by booking a demo or reach out to us using our Contact Form.
