Ready-to-drink (RTD) is one of the coffee market’s most exciting and innovative segments. It is growing at a pace and offers plenty of opportunities for businesses and customers to explore new ways to prepare, serve, and experiment with coffee. 

But alongside the rapidly developing cold brew and nitro coffee segments, RTD mocktails have been gathering speed – particularly RTD espresso martinis, a convenient version of the famous cocktail bar staple. 

As demand for non-alcoholic beverages continues to grow, driven by younger consumers, alongside the increasing popularity of convenient RTD beverages, coffee brands are well-positioned for market success, with already loyal audiences and inquisitive new ones. 

To learn more about why this is, we spoke to Nicole Battefeld, 2022 German Brewers Cup Champion and Brand Ambassador at nunc.

Gen Z consumers and alcohol moderation trends

According to a 2024 Sober Curious Report by NCSolutions, 61% of US Gen Z consumers and 49% of US millennials are trying to drink less alcohol. Many of them cite saving money, mental and physical well-being, and lifestyle changes as the key drivers. 

Gen Z consumers are also leading a wider trend in lowering their alcohol intake. According to a 2024 Mintel report, 40% of 16 to 24-year-olds said they were consciously drinking less, with 20% less likely to consume alcohol. 

The shift away from alcoholic beverages to non/low alcohol alternatives is significant, evidenced by the increasing number of large multinational beverage companies launching non-alcoholic versions of their most popular beverages. 

The non-alcoholic beer segment, for example, is expected to be worth more than $5bn by 2028. Recently, Guinness launched a 0.0% ABV version of its famous stout to appeal to younger consumers. 

In December 2023, White Claw launched a non-alcoholic line of its famous hard seltzers, specifically citing Gen Z demand as its chief reason for new product development.  

Where do RTD mocktails come in?

So, we know that more consumers than ever are opting for non-alcoholic versions of their favourite beverages. But a recent IWSR report reveals an even more relevant point for the coffee industry – the rate of conversion from previously tee-total consumers to non-alcoholic beverages is higher than from those who drank alcohol previously. 

In effect, consumers who might have chosen to drink a coffee or soft drink instead of an alcoholic beverage are now the group most likely to choose a non-alcoholic beverage, such as an RTD mocktail, to enhance their experience. 

Coffee businesses and brands should take careful note of this trend. They are best positioned to convert their already loyal consumer base, familiar with coffee-based beverages, to coffee mocktails and non-alcoholic RTDs. 

Some businesses are already seizing this opportunity. In 2022, Australian canned beverage specialist Sans Drinks launched an RTD espresso martini mocktail composed of cold brew coffee and non-alcoholic vodka to “give you a buzz without the alcohol”.

Despite its recency, the non-alcoholic coffee-based RTD segment holds exciting potential within the broader non-alcoholic market. 

Gen Z consumers are the most likely to look for non-alcoholic beverages and RTD beverages. Among the most educated coffee drinkers, coffee brands should see this group as their key target for RTD espresso martini mocktails.

Why choose RTD espresso martini mocktails and cocktails?

Created by British bartender Dick Bradsell in the mid-1980s, the espresso martini was the first coffee cocktail to become widely popular. Today, the espresso martini continues to be one of the most popular cocktails in the world, and it even has an international day of celebration. 

Though the espresso martini is widely considered to be the first of its kind, in the years since its inception, other coffee cocktails and mocktails have exploded in popularity. 

“The growing popularity of the RTD sector certainly drives these trends, but consumers are also seeking a tailored drinking experience without having to have bar knowledge or different ingredients at home,” says Nicole. 

For example, in 2018, as a response to what the company saw as an “increased demand for a high standard cocktail experience at home”, coffee liqueur giant Kahlua launched its own RTD espresso martini. Crystal Head Vodka and Café Solo are following suit later this year with their own versions. 

“I believe the popularity of the RTD segment within coffee – which includes mocktails and cocktails – is driven by consumers’ desire for convenient yet high-quality, health-conscious, and innovative beverages,” Nicole says. 

Part of the increase in demand can be attributed to nitro-infusion, which replicates the signature velvety mouthfeel of the classic cocktail. This gives the RTD espresso martini mocktail a texture and experience unique to other coffee drinks. 

“Technologies like nitro infusion massively improve the appeal of RTD espresso martini mocktails and cocktails for consumers,” Nicole says. “Often, these drinks are better than the drinks offered in coffee shops, and their quality is more consistent.

“Simultaneously, changing consumer habits towards healthier, no and low-alcohol options and the demand for convenient, unique beverage experiences are pushing the growth in this segment.” 

Working with private label RTD mocktail manufacturers

As interest in mocktails continues to exhibit strong growth, buoyed by Gen Z-led trends in health and wellness and alcohol moderation, coffee brands are well-positioned to capture new audiences and expand their current bases.

Capitalising on any food and beverage trend requires dynamism, getting to market quickly and efficiently with high-quality and safely manufactured products. 

Producing your own RTDs, like an RTD espresso martini mocktail, requires significant investment in machinery, technology, real estate, and staffing, all of which can be potential barriers to success. 

Instead, aspiring brands can partner with a private label RTD manufacturer that offers supportive expertise and a faster route to market. 

Finding a partner like Hardtank, with low MOQ requirements, faster production times, and a wide range of product options, will further help your business diversify its offering and stay relevant and up-to-date in a competitive market.  

“Businesses looking to create branded RTD products should seek a partner with extensive experience in RTD manufacturing and a strong track record of producing high-quality beverages,” says Nicole.  

“It’s essential to find a partner who offers comprehensive services, including formulation, packaging, and compliance with industry standards, who is transparent about the manufacturing process, who provides cost-efficient solutions and who respects your ideas and recipes.

“Ideally, these partners co-create the RTDs with numerous customer touchpoints. Additionally, choosing a partner with innovative capabilities and a commitment to sustainability can enhance the appeal and marketability of the branded products.”

Choose an innovative and dynamic RTD partner for your business

At Hardtank, we offer two different RTD services for our partners, including a wide range of private label products and a custom formula service. 

We also have industry-leading MOQs, making it easier than ever to test new products. Our capacity to scale as you grow means that we’ll always be able to ramp up your order size as you need it.

As the RTD market continues to grow rapidly, coffee mocktails are just one segment on which to capitalise. By working with Hardtank, you can secure your ability to react quickly to market trends, meet demands, and drive innovation while we focus on delivering the highest-quality RTD beverages.

To learn more about how Hardtank can help your business, visit our website or get in touch with us directly. You can also join our mailing list to stay up-to-date on the latest news and developments. 

RTD espresso martini mocktails