The global cold coffee market is expected to be worth more than $1.4bn by 2027, growing an average of 22% annually. 

RTD (ready-to-drink) products, like RTD nitro coffee, are a key growth driver within the segment, as consumers actively search for convenient, on-the-go solutions. 

In particular, Generation Z consumers (often defined as people born after 1996) are “significantly more likely” to drink RTD coffee than traditional hot-brewed options – and this demographic continues to drive the RTD market forward. 

As with any fast-growing trend, RTD coffee presents plenty of innovation opportunities for retailers and manufacturers in the space. What started as iced americanos and lattes in takeaway cups has morphed and grown into a sophisticated and diverse product range, varying from retailer to retailer in shape, size, design, flavour, and technology. 

RTD nitro coffee has emerged in recent years as the most exciting and dynamic trend within cold coffee. It takes a traditional cold brew product and introduces nitrogen bubbles in the canning process to produce a creamier, porter-like mouthfeel. 

The cold coffee segment and RTD nitro, specifically, are fast-moving categories ripe for innovation. To learn more, Hardtank spoke with Chris Gaag, Director of Operations at OTT in Cape Town, South Africa, to get a clearer picture of emerging trends in RTD nitro to watch out for. 

RTD nitro accessibility means growth

“One of the key trends, and perhaps the most important, is that it’s becoming easier to make nitro RTDs,” says Chris. “The amount of capital required to make it yourself is becoming less; you don’t necessarily need to go to a third party to help.” 

“If you’re a larger business, roaster, or cafe, you can afford the equipment required, and you’re going to have a lot more control over what the end product is going to taste like. That’s going to drive the category even further, as there will be more variety. Not every RTD nitro will taste the same, and that’s going to be interesting because there is going to be much more choice on the market.”

Chris’ words highlight perhaps the most critical trend in RTD coffee: that an increasing number of smaller specialty coffee operators are entering the market thanks to the accessibility provided by technological advancement and private label manufacturers.  

It is true that specialty coffee, in particular, has been driving innovation across the wider sector—and RTD nitro is no exception. Chris expects the increasing number of boutique operators playing in the nitro space to be a significant boon. 

“It will catapult nitro globally,” he says. 

More diverse flavours and more options

RTD coffee offers businesses a wide range of opportunities – including the chance to diversify their product offerings. 

“With RTD, you can appeal to a much wider customer base,” says Chris. “Not everyone wants to drink a hot beverage, and that’s why there is such a focus on cold coffee. If you want to increase foot traffic to your establishment, you need to offer exciting new things and options that go beyond your existing range.

Of course, the bulk portion of your consumers want to come in and drink a flat white or americano, but there is a growing portion who want to try something different, and this is where nitro comes in.”

Thanks to its production process, nitro coffee has a less bitter flavour than traditional coffee. The nitrogen bubbles impart a creamier finish, which can make it a more accessible entry point for consumers who are new to coffee. 

RTD nitro is also well positioned for flavour infusion, which allows coffee businesses to experiment with syrups and flavourings to appeal further to novice coffee consumers.

Many of these – who are also younger – are primarily driven by customisation and novelty, which flavourings allow you to appeal to.

Coffee-based mocktail beverages

The global RTD mocktail market is booming as more consumers swap alcohol for soft drinks — with a renewed focus on wellness now increasingly driving purchasing behaviour. Cold brew and nitro coffee present possibilities for businesses looking to gain a share in this lucrative segment.

In particular, cold brew coffee is becoming a popular base for mocktails, and nitro offers further opportunities to diversify behind the bar. 

Cold brew or nitro coffee maintains its mellow acidity for longer periods, making it a suitable replacement for espresso in an espresso martini mocktail. 

“Nitro is going to transform the game,” says Chris. “It opens so many mixing possibilities – no longer just the boring espresso martini.

“You don’t need to fiddle with the coffee; nitro is much easier to work with.”

Sustainability and eco-friendliness

Sustainability and eco-friendliness trends are driving consumer behaviour worldwide, which means that more coffee businesses are relying on these trends than ever. 

However, “sustainability” often means different things to different businesses. For instance, some have started offering cascara, which has become increasingly popular over the last few years. 

Cascara is made from the dried flesh of coffee cherries. It produces a tea-like beverage that can be drunk warm, cold, or sparkling. In some cases, it’s even been used in RTD products. 

Alternatively, many businesses have pivoted to adopting aluminium cans over glass bottles for RTD, which are, in many cases, infinitely recyclable. Aluminium allows for broader printing, providing businesses with more product real estate. In turn, you can use this to broadcast your sustainability credentials more clearly.

National deposit schemes like Germany’s DRS encourage consumers to recycle their aluminium waste correctly, which means that RTD as a product segment will have fewer roadblocks for long-term sustainability compared to disposable coffee cups, for instance. In the UK alone, aluminium cans are already the most commonly recycled type of single-use vessel for RTD. 

“I don’t think people exclusively buy because something is sustainability-sourced or eco-friendly, but it is an excellent selling point,” says Chris. “There are some consumers to whom these credentials will primarily drive your products, and as a business, you have to be environmentally conscious because consumers expect it.”

At Hardtank, we offer both commercial cold brew equipment and private label RTD services for businesses.

Our equipment range consists of the following:

• Hardtank 20: The classic Hardtank device that can produce 1,000 portions of cold brew in one day. 
• Hardtank 1T: Functions just like the Hardtank 20 but has an integrated dispenser tap. 
• Hardtank 2T: Has two built-in taps to help your team streamline service.
• Baby Hardtank: The countertop version of our technology is ideal for smaller venues. 

If you’d like to offer your customers a line of RTD nitro cold brew coffee, we offer a private label service. When you partner with Hardtank, you have two options: You can choose coffees from our range or create your own custom formula. Everything will be brewed, canned, and packaged with your branding at our facility. 

To find out more about partnering with us for RTD nitro cold brew coffee or sourcing cutting-edge equipment, contact our team.

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Hardtank RTD nitro cold brew