Nitro cold brew coffee is more popular than ever. It is often served via a nitro draught system in cafes and coffee shops or as a canned RTD nitro coffee beverage on supermarket shelves and in convenience store fridges.
But how has this innovative product become so popular in recent years, and where exactly does its appeal come from?
Modern consumer trends like premiumisation, product variation, and convenient consumption have all contributed to the surge in the popularity of nitro coffee.
To learn more about RTD nitro coffee’s growth and what to expect going forward, we talked to Claude Burns, CEO of Office Libations, and Oscar R. Sandoval, partner owner of Nomad Cold Brew.
Premiumisation and customisation in coffee beverages
With RTD nitro coffee, coffee brands and beverage manufacturers have created a premium coffee category based on taste, convenience and brand/marketing appeal, similar to the growth of craft beer in the alcoholic beverage industry.
Premiumisation relies upon modern brand aesthetics, but product quality and taste are as important, attributes well highlighted by RTD nitro coffee.
“First, the nitrogen action helps soften out the taste of coffee; second, it is defined by the type of coffee, roast, and brewing process,” says Oscar.
According to a 2024 Drive Research report, 83% of people drink coffee because they like the way it tastes, but only 18% of Americans prefer to drink their coffee black. This proves that the majority of coffee consumers customise their coffee beverages in some way.
“Nitrogen creates a smooth creaminess even to a straight cold brew, which can feel a little like a latte. As it’s brewed cold, the level of acidity is lower, which many drinkers prefer, and I find, especially with the nitro versions, that cold brew has a level of natural sweetness that doesn’t need milk or sugar. Hence, it’s lower calories, a more healthy option to drink,” explains Claude.
“We sell a lot of nitro coffee in kegs for corporate offices and other wholesale accounts like bars, restaurants, and airports. But we also sell a lot of RTD canned options to those offices, too,” says Claude.
RTD nitro coffee has wide appeal potential. While just a small percentage of coffee drinkers consume their daily brew straight-up, most customise their beverage in some way or seek out that coffee flavour with variation.
A world of fun flavours
Both Claude and Oscar agree that the customizability of nitro coffee positions it well for future growth and success.
“I think you’ll see a lot more additives added to cold brew, similar to what you’re seeing with other coffee drinks being sold at the big chains today. I expect lots of different milks and traditional coffee flavourings like vanilla, chocolate, and yes, of course, pumpkin spice,” says Claude.
“You’ll see more experimentation in the market, like seasonal releases, as brands continue to compete for shelf space and stand out among all the different options.”
“Nutty flavours and alternative milks work well, too,” adds Oscar. “We will see more blends with almond or oat milk and brands trying to emulate draft nitrogenation in RTD formats like cans.”
The growing popularity of healthy beverage alternatives
Through its customisable and premium qualities, nitro coffee is well placed to be front of mind as modern consumers seek out healthier beverage alternatives. In the case of alcohol consumption, younger generations are increasingly avoiding alcohol to match modern lifestyle, dietary and health and wellness trends.
In the US, for example, fewer people drink alcohol than 20 years ago – 28% to 30% of American adults aged 18-22 (university students or non-students) avoid alcohol. Consumers are also consciously avoiding sugary drinks like soda.
Cold brew, and nitro coffee especially, suits a wide variety of social settings, like study groups, sports events and restaurants and bars, as a no/low-alcohol or low-sugar, yet indulgent alternative.
Cold brew features on 12% of American restaurant menus, and its presence is expected to grow as products like nitro coffee become more mainstream.
“I think the biggest advantage is that consumers really like it, so it sells well,” says Claude. “Typically, the demographic skews toward younger purchasers, urban settings, and areas where coffee culture is a bit more established.”
Beyond on-site consumption, Oscar has noticed the growing popularity of RTD nitro coffee as a convenient, on-the-go beverage option.
“What we have encountered over the past four years is it opens up a market for fit people looking for alternatives to energy drinks,” he says.
“The focus now is educating customers about nitro coffee, how to drink it, and how it is different from regular brewed coffee.”
Choose a convenient solution for you and your customers
RTD nitro coffee is convenient for both the people consuming it and businesses manufacturing and selling it.
For consumers, RTD nitro coffee can be enjoyed on the go while commuting, travelling, playing sports, or at home. Some coffee shops offer their nitro coffee on draught on the countertop to be enjoyed in-store and then the same product as an RTD for customers to take home.
“What makes nitro cold brew stand out among the cold beverages is its accessibility. As an RTD nitro coffee, the consumer or coffee shop doesn’t have to fuss with diluting a concentrate down to your preferred level – it’s just ready to go,” he says.
Hardtank’s private label nitro cold brew has an ambient shelf life of 12 months, helping coffee brands meet retailer expectations and better manage their stock and financial processes. We also offer low MOQs and faster lead times to help you go to market faster.
Every Hardtank private label RTD nitro coffee is manufactured in our BRC-certified production facility, subject to the most stringent health and safety standards, and is endlessly customisable according to your brand aesthetic and values.
Ultimately, RTD nitro coffee is a convenient, delicious, customisable, and premium product – a home run for modern consumers and coffee businesses alike.
If you’re a coffee or beverage business looking to source your own line of RTD nitro coffee, visit our website or get in touch with us directly.
Did you miss our masterclass? Don’t worry; you can watch the full video here.
RTD nitro coffee