Christmas is perhaps the biggest national holiday in the UK, with the build up stretching back as early as September before reaching fever pitch around party season and the day itself. With this comes a lot of occasions for eating and drinking, many of which will have a festive twist.
According to Kantar, Christmas grocery sales hit £13.8 billion in 2024, with the average household spending a record high £460 on take-home groceries. Clearly, the holiday remains vitally important for food and drink firms across a range of categories.
Asked why Christmas represents such a vital opportunity to drive sales, Richard Milner, who serves at category and insight manager at private label coffee roaster Lincoln & York, said that it remains the “perfect occasion to treat yourself”.
“Christmas time flavours have always been that little bit more indulgent than what we see throughout the rest of the year," he continued.
“We see coffees embellished with additions such as Irish cream liqueurs, gingerbread or chocolate orange flavours, creating novelty tastes which feel unquestionably Christmassy to drive sales over the festive period.”
Alex Whittle, innovation director within the Samworth Brothers savoury pastry team, agreed Christmas products need to be set apart from regular launches.
“From intelligence provided by our insight team, we know that people are seeking meaningful experiences and look to their food to provide a sensory escape and guaranteed deliciousness,” Whittle said.
“Our pies are elevated to another level with hand-decorated leaves, luscious lattice toppings and glistening glazes to make them shine as the star attraction on the Christmas table.”
To understand how brands are delivering indulgence ahead of Christmas 2025, we spoke to figures from across the sector and asked them to share their insights.
Christmas crossovers
One way that food and drink manufacturers are looking to appeal to customers this festive season is through collaborative NPD. By bringing together well-known brands to develop a limited edition product, firms can create hype and that fear of missing out.
Baileys, the Irish cream liqueur brand owned by Diageo, is often associated with Christmas and this year has team up with another festive big hitter in the shape of Terry’s. Together they have launched bottles of ‘Baileys x Terry’s Chocolate Orange (17% ABV)’, described as an “irresistible treat” that can be enjoyed “in the run-up to and during the holidays”.
“Baileys x Terry’s Chocolate Orange is a match made in heaven – decadently indulgent and utterly delectable,” said Charlotte Gibbon, a spirits director at Diageo.
Lorène Decam, senior marketing manager at Terry’s, added: “For generations, Terry’s Chocolate Orange has been a staple of the Christmas season. Partnering with Baileys to create Baileys x Terry’s Chocolate Orange is an exciting way to reimagine that tradition in a new and indulgent form. We can’t wait to see fans enjoying this irresistible treat in the run-up to and during the holidays.”
But it doesn’t stop there for Baileys or Terry’s. Baileys has also partnered with Irish chocolatier Lir Chocolates on the launch of the ‘Baileys Chocolate Caramel Whirl’, while Terry’s has expanded its festive line-up with the unveiling of a limited edition ‘Terry’s Chocolate Caramel Ball’.
“Caramel continues to dominate flavour trends, and we see strong headroom for growth in everyday indulgence and seasonal gifting,” Decam continued.
“This launch is more than just a flavour extension – it’s a strategic move to broaden our relevance beyond orange, while building on the rituals and emotional connection that make Terry’s a festive essential.”
Meanwhile, brand manager for Baileys chocolate, Ethan Duffey, explained the value of nurturing partnerships across different product formats: “The Chocolate Caramel Whirl is expected to be one of the brand’s most successful seasonal NPDs yet, with strong retail backing driven by Baileys’ recognised credentials in festive treating.
“The format meets the needs of today’s value-conscious but experience-seeking shopper.”
Social media driven launches
One way that firms can look to elevate their Christmas NPD is through tapping into the trends gaining traction online and particularly through social media. According to new research by Allegra, 45% of under 35-year-olds shared a picture of their beverage on social media in the last 12 months, a statistic that has informed the approach of Lincoln & York.
“[The role of social media] creates additional pressure for operators to create drinks which not only taste delicious but also look spectacular,” Milner said.
“From towering cream with sprinkles and glitter to marshmallows, candy canes and biscuit crumbs, we’re expecting another season of highly decorative, Instagrammable coffees this Christmas.”
Dubai chocolate and pistachio are two social media driven trends that Milner expects to influence Christmas spending, among others.
“Further to this, as we come into Winter Spice and Cinnamon Chai season, this year will see these warming flavours extend into the iced coffee realm,” he continued.
“We saw the beginnings of this last year, but cold coffee’s popularity shows no signs of cooling down, with the market now worth £302 million we’re seeing seasonality in consumption narrowing and more consumers enjoying cold coffee all year round. We’re expecting to see even more creative uses of these typically ‘winter warmer’ flavours in cold coffee formats this year.”
Samworth Brothers has also looked to tap into the growing popularity, especially among younger consumers, of “global-inspired flavours” that circulate on social media.
“Christmas in food to go is a really exciting place to be with innovative carriers such as Yorkshire pudding wraps and brioche bagels,” Rebecca Pope, innovation director within the Samworth Brothers food to go team, told Food Manufacture.
“This season sees global-inspired flavours in festive offers, to cater for Millennials and Gen Z who prefer unique flavours over traditional options.”
The firm has also looked to reimagine festive staples with a more contemporary spin.
“We are adding new classics and extra personalisation, such as gravy mayonnaise,” continued Pope.
“There will be indulgent festive toasties and snacking options providing a hot twist for Christmas on the go for our coffee shop customers.”
Premium at home
The past year has been defined by food and drink firms looking to capitalise on a decline in the number of people dining out, with premium options that can be enjoyed at home proliferating. Lincoln & York said this trend has not yet translated into the coffee category though, with the out of home coffee market up 6.9% in the year to June 2025 according to Kantar.
“In simple terms, more people are buying coffee, and they’re doing it more often, proving that good quality coffee remains an affordable luxury which consumers are happy to treat themselves to,” Milner said.
“[However], out of home coffee shops are now faced with the challenge of elevating these flavours further, to not only outdo competitors but also build on their own previous efforts.”
Soft drinks brand J2O, part of the Carlsberg Britvic portfolio, is also looking to offer premium options that can be enjoyed at home through the relaunch of its seasonal J2O Glitterberry SKU. The grape, cherry and winter spice flavour drink includes edible red glitter and is available for a limited time only, while it also offers customers the chance to win prizes.
“With consumers entertaining friends and family more often and at home during the run up to Christmas, we’re aware how key this shopping period is for retailers,” said Carlsberg Britvic chief marketing officer Munnawar Chishty.
“We know that J2O Glitterberry is a firm favourite with our customers [and] this year’s on-pack promotion will add an extra layer of excitement, giving shoppers a reason to choose J2O and enable retailers to maximise their premium adult soft drink sales.”
And it’s not just humans that are being catered for, with pet food brand Pooch and Mutt launching a range of premium Christmas meals for dogs. The new ‘A Dog’s Christmas Dinner’ collection provides consumers with a complete festive offering across meals, treats, chews and gifting.
Emma Frain, executive director of brand at Pooch & Mutt, explained: “Christmas is all about family, and that means our dogs too. This year’s festive line up allows pet owners to treat their four-legged friends to indulgent flavours, but with products that have functional health benefits too.
“From glossy coats to healthy digestion, every product in the range is designed to make sure pets can enjoy the season just as much as we do - while reassuring pet owners that they’re feeding nutritionally balanced meals throughout.”
Traditional favourites
Amid the experimentation and innovation seen across the sector, there remains a strong demand for traditional Christmas products.
For example, Premier Foods has launched two festive Mr Kipling ranges – ‘Mr Kipling Mince Pie Whirls’ and ‘Signature Collection All Butter Mince Pies’ – which tap into demand for timeless staples. According to Circana data, mince pies has increased in sales value by 34% over the past five years and are now worth nearly £80 million.
“Christmas is a crucial time for the category, and mince pies remain at the heart of festive traditions,” explained Naomi Shooman, global marketing director for sweet treats at Premier Foods.
“We know they’re a much-loved favourite, but we’re always looking for ways to surprise and delight consumers with new variations on classic flavours. With our Mince Pie Whirls, we’re hoping to bring excitement and intrigue to the Mince Pie segment, while our two-pack Signature Collection Mince Pies opens up even more opportunities for shoppers to enjoy a premium sweet treat.”
Free-from chocolate brand Nomo is also getting in on the act having rolled out an eight-product Christmas range aimed at “bringing the festive magic to shelves”. This includes a ‘Sticky Toffee Reindeer’, ‘Creamy Choc Advent Calendar’ and ‘Kids Selection Box’.
Discussing the range, Nomo senior brand manager, Tara Stevens, said that it was about allowing everyone – including those who are vegan or avoiding dairy, gluten, egg or nuts – to get involved in the festive spirit.
“We know how important festive traditions are, and our 2025 Christmas range is all about making sure everyone can be part of the magic,” Stevens commented.
“From our playful chocolate reindeers to our biggest-ever advent calendar, this range is full of bold, fun, and flavour-packed treats that reflect the heart of NOMO – delicious chocolate with zero compromise.”
On the savoury side, McCain has created a spin on a Christmas classic with the addition of a ‘Pigs in Blankets’ flavour to its Vibes snack range. The flavour attempts to embrace a “one of the most loved and iconic flavours of Christmas” and bring “nostalgic joy” to customers.
“With some serious snack appeal, McCain’s Vibes Pigs in Blankets flavour are fluffy yet crispy treats that will bring a whole lot of festive feels to any moment, whether it’s a Christmas movie marathon, a cosy night in decorating the tree, or a friends-mas dinner party,” a spokesperson for McCain added.
