Arctic Coffee drives innovation as UK iced coffee market expands beyond summer routines

Arctic Coffee drives innovation as UK iced coffee market expands beyond summer routines

Industry News
UK Drinks Industry

Arctic Coffee leverages new product launches and shifting consumer habits to fuel growth in the UK's £321m iced coffee market, which is expanding year-round with lower-calorie and caffeine-free options.

Arctic Coffee’s head of marketing insight, Abigail Kelly, says the UK ready-to-drink iced coffee market has become a £321m category, with shoppers buying more often as the drink slips into everyday routines. She described the sector as highly dynamic, with convenience, café-style flavours and a steady stream of new products helping to pull more consumers into the aisle.

That momentum is reflected in broader market research. Grand View Research says the UK RTD coffee market is on course to expand from $1,808.1m in 2024 to $2,771.5m by 2030, while Ken Research points to busy lifestyles, health awareness and wider retail availability as central to the category’s appeal. Separate analysis from Insight Trends World suggests UK iced coffee sales rose by 7.2% in value and 5.2% in volume over the past year, although performance has not been uniform across all brands.

Kelly said Arctic Coffee is benefiting from that shift. The brand is worth £31m in sales value and holds an 18.2% volume share, making it the UK’s number two iced coffee label, according to the company. She said take-home packs and innovation-led launches are helping drive sales, as shoppers look for products that combine taste, value and versatility.

Arctic Coffee is now leaning into a faster-changing set of drinking occasions. While iced coffee still peaks in warmer weather, Kelly said it is increasingly being consumed throughout the day, from morning boosts to later refreshment. That widening use case is creating space for lower-calorie, lower-sugar and caffeine-free lines, particularly as some consumers want to enjoy the category in the afternoon or evening without the stimulant hit.

The brand’s newest answer is Arctic Decaf Café Latte, which it describes as a category-first launch. The drink is positioned as a caffeine-free option with fewer than 150 calories per 330ml serving, low fat, no added sugar and a protein claim, aimed at consumers seeking moderation without sacrificing flavour. Arctic Coffee is backing the range with digital marketing, influencer partnerships, YouTube, Spotify and out-of-home advertising, as well as festival sampling and retailer activity, while also marking its tenth anniversary this year.

Kelly said the strongest grocery performers remain the Caramel Latte and Latte in single-serve form, alongside their 1-litre take-home versions. Double Shot and Protein Caramel Latte are also gaining traction. She added that the company works closely with retailers through seasonal activation, point-of-sale support and shared category insight, particularly around summer, when iced coffee demand typically accelerates.

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