Ready-To-Drink (RTD) Cold Brew is the New Hottest Coffee Trend

Convenience is key – that’s the thought behind one of coffee’s hottest trends, RTD Coffee. Ready-to-drink (RTD) coffee refers to canned or bottled cold coffee products sealed for whenever you’re ready to sip. In 2019, the global RTD coffee market was valued at $22.4 billion U.S. dollars and is expected to reach $42.4 billion by 2027. This growing demand in the 18-39 age demographic is linked to a cultural shift away from carbonated soft drinks as well as consumers’ on-the-go lifestyles.

Here, we’ll break down the main reasons why this trend is soaring, some interesting characteristics of this style, and key players in the space.

Healthier Caffeination

With health consciousness top-of-mind for a lot of today’s consumers, a shift away from sugary carbonated soft drinks is opening a door for other caffeinated options to step in. While major brands continue to produce zero sugar alternatives to classic soft drinks, RTD coffee and its variants make for an accessible alternative.

Fast-paced lifestyles

Pre-packaged, grab-and-go beverages are essential in the fast-paced lives of consumers. With a want for caffeination to help them stay on pace allowing RTD coffee, energy drinks, and functional beverages to fill the perfect market slot for younger consumers. Gen Z coffee drinkers prefer cold over hot and lean to bottled or canned over brewing their own. According to a Mintel report, 60% of Gen Z consumers drink RTD compared to only 49% drink brewed ground coffee. When looking at Millennials and Gen Z as one age group, consumption of coffee among these generations is growing, boosting the market adoption of RTD coffee.

Leading RTD Coffee Trends

Functional Ingredients

Between prioritizing health and seeking to boost focus and productivity, functional ingredients are leading the beverage industry into the future. As brands create RTD coffee recipes with ingredients like protein, collagen, electrolytes, and adaptogens, the functional beverage category and coffee category are merging more than ever.

Indulgent Blends

As some consumers look to treat themselves, RTD coffee’s variety of sweet, creamy flavors satiates the sweet tooths of those otherwise seasonal coffee fanatics. Alternatively, those seeking less sweet, nuanced specialty coffee flavors can also find their favorite craft blends on shelves.

High Energy Boosts

Higher caffeine RTD drinks provide the perfect morning kick-start or afternoon pick-me-up. Cold brew and other varieties are fan favorites for many young consumers.