Estimated at £265 million, the UK iced beverage market continues to grow, accounting for a 3.3% share of the total UK coffee shop market turnover according to Project Iced 2016 UK, the latest report from Allegra World Coffee Portal.
With 8% sales growth YOY, the iced beverage category is an important sales driver for the coffee shop market. However, keeping the same rate of growth proves increasingly difficult with seasonal volatility.
Despite the 30%+ growth seen in 2014, poor weather in 2015 led to single digit decline for a few operators, impacting the strong growth seen in previous years. Nevertheless, the introduction of iced beverages by food-focused and non-specialist coffee shops, together with a wider menu range, has contributed to the measured growth observed.