RTD coffee sales have been an unexpected driving force behind the ready-to-drink boom.
With drinks-on-the-go still a leading trend in 2023, let’s take a look at the role RTD coffee sales play in the category’s upward trajectory:
- A nation of coffee lovers.
- The value of RTD coffee in 2023.
- Why are RTD coffee sales on the rise?
- The future for RTD coffee.
Are you surprised by how big RTD coffees have become?
A nation of coffee lovers
Britain has long been synonymous with tea-drinking. So, you might be surprised to hear that coffee has taken over as the nation’s favourite hot drink!
In fact, we drink 98 million cups of the stuff in the UK every single day – but it’s not just traditional brews that we’re hooked on.
More and more, British coffee fans are switching out freshly-made mugfuls in favour of more convenient ready-to-drink options. This is particularly true of the upcoming generation of young adults and professionals, according to research from Mintel published earlier this year.
The value of RTD coffee in 2023
But why is all of this important? Well, because it’s a key area of growth within FMCG, which means exciting opportunities for the sector.
To put things into perspective, recent stats from Nielsen reveal just how big these opportunities could be. You see, RTD coffee sales haven’t gone up by just a little. In the past three years alone, the category’s sales value has more than doubled, catapulting it to £289 million! That’s faster than the total rate of growth for the soft drinks category as a whole.
For brands, retailers, and talent working within FMCG Drinks, there’s plenty of scope here to expand offerings and boost sales.
Why are RTD coffee sales on the rise?
There are several reasons behind the RTD coffee boom, but among the most prominent is the uptick in NPD.
In other words, it’s because there are so many more products on shelves these days, and in a variety of strengths, blends and flavours. So, there really is something for every kind of coffee drinker. That might be why RTD coffees are so successful at inspiring unplanned spend, with 60% of RTD coffee purchases being unplanned.
Other factors that undoubtedly come into play include convenience and cost-effectiveness – which are also factors behind the boost in sales for RTD cocktails.
The future for RTD coffee
The caffeine-fuelled rise of RTD coffee shows no signs of stopping. It’s possible that the category could double in value again within the next few years, if it keeps its current trajectory on track.
Clearly, there’s a lot of money to be made here. However, brands will need to work at reaching new potential customers if they want to come out on top. As it stands, only a quarter of Brits regularly drink RTD coffee.
So what does this mean?
It means investing more in the areas of your organisation that can drive growth, including:
- New product development (NPD).
- Branding.
- Shopper marketing.
- Merchandising.
- National account management.
And, the good news is – we can help!
Gain insider access to the market’s leading professionals across these areas and beyond – work with The Advocate Group for your next hiring project.
Whether they’re actively looking, hidden, or passively open to new opportunities, we’ll find and make direct approaches to the right people for your organisation.
Want to know how? Get in touch with the consumer product recruitment experts:
Call Us: 0333 772 7200
