Analysis — UK — RTD

Analysis: UK RTD coffee market faces major shake-up following sugar tax extension

Dozens of major ready-to-drink coffee products may need to be reformulated if they are to avoid additional taxation on pre-packaged milk-based and milk alternative drinks with added sugar

10 December 2025

3 min read

Emmi Caffe Latte RTD drinks on a production line | Photo credit: Emmi Group

Dozens of major ready-to-drink coffee products may need to be reformulated if they are to avoid additional taxation on pre-packaged milk-based and milk alternative drinks with added sugar

The UK’s burgeoning ready-to-drink (RTD) coffee market is set for significant change following an extension to the UK government’s sugar tax.