In recent years, RTD nitro cold brew coffee (ready-to-drink) has gained tremendous momentum, quickly becoming a go-to beverage for busy consumers in all food service settings, from cafes to grocery stores to vending machines. 

This rise in popularity reflects the growing demand for convenient, high-quality drinks that cater to today’s fast-paced lifestyles, especially those of younger generations. 

But why should coffee businesses go a step further by adding RTD nitro cold brew to their product lineup? How does nitro coffee contribute to growth?

To gain a clearer picture of the RTD coffee landscape and the potential of RTD nitro cold brew, we spoke to Tom Saxon, founder of Batch Coffee Club and Coffee Finders Club.

What is RTD nitro cold brew?

RTD nitro cold brew is more than just another cold, canned coffee. The addition of nitrogen not only enhances the texture of regular cold brew but also provides a richer, creamier experience for the drinker due to the tiny bubbles present. 

“Nitro cold brew is an infusion of cold brew and nitrogen gas that creates a smooth and creamy head – similar to a pint of Guinness. The nitro aspect gives the cold brew a unique mouthfeel and slightly different flavour profile,” Tom explains. 

The RTD factor adds a layer of convenience to both the drinker and the retailer. RTD nitro cold brew is pre-packaged, typically in a can, and ready to drink straight away – well suited to busy customers who want to drink their coffee on the move. 

For the retailer, instead of daily brewing and investing in a nitrogen tap and other equipment, RTD nitro cold brew can be stored ambiently until it is ready to be sold – Hardtank’s RTD nitro coffee has a shelf life of up to 12 months – and then placed on display in a refrigerator for immediate consumption.

For cafes, roasteries and coffee shops, selling RTD nitro cold brew can be advantageous because it mitigates the risk of waste, spoiling, or contamination inherent in traditional cold brew, which needs to be consumed quickly after brewing even under the best conditions. 

RTD nitro cold brew presents an ideal solution for coffee operators looking to expand their menu without increasing operational complexity and taking on more risk.

Consumer trends and demand for cold coffee variation

The market for cold coffee beverages has experienced a notable surge, whether consumed in-store, takeaway, or in a ready-to-drink format.

The cold brew market has grown by 300% since 2016, and the nitro coffee market is expected to grow at an impressive annual rate of 25% between 2024 and 2030. 

“In general, the market for cold coffee beverages has certainly increased over the last few years. I remember when I first started working in coffee back in 2013, and it was quite unusual to serve cold coffee – even in Australia,” Tom notes.

“Now it’s everywhere. I also think companies are able to brand RTD coffees and cold brew much easier today, so it’s quite a nice product to sell.” 

This trend is being driven by a few key factors. Firstly, the convenience and on-the-go nature of RTD beverages appeal to a broad spectrum of consumers. 

Secondly, branding has become increasingly crucial for coffee businesses in this digital age of social media marketing.

RTD nitro cold brew is a versatile product with strong branding potential that easily fits into any retail strategy. Aluminium cans are highly customisable, and the best private label partners will ensure your products seamlessly match your brand. 

Moreover, cold coffee is not limited to just cafes or coffee roasters. The product has expanded into broader retail markets, opening doors to grocery chains, convenience stores, and transport hubs. 

As RTD nitro cold brew continues to develop, there are a range of opportunities for it to make waves beyond the coffee sector, appealing to consumers in the broader soft drinks market.

Key benefits for coffee businesses offering RTD nitro cold brew

Numerous benefits exist for both established brands and smaller roasters offering RTD nitro cold brew, with one major advantage being the profit potential. 

“Higher profit margins alongside low labour costs make it an extremely attractive product in the coffee industry today,” says Tom. 

“With green coffee prices going through the roof and energy prices increasing, an RTD beverage that can also essentially be an order bump is a great business opportunity.” 

As a pre-packaged and ready-to-drink product, RTD nitro cold brew allows businesses to increase sales without putting additional strain on staff or resources, especially when they partner with a private label cold brew manufacturer. 

The branding opportunities are particularly appealing for coffee shops and roasters. The scalability of RTD nitro cold brew means it can reach a much wider audience than traditional coffee products, with the potential to sell to a wider range of vendors like supermarkets and hotels rather than just cafes or restaurants.

Additionally, RTD nitro cold brew is trendy among younger consumers, who are drawn to both its innovative nature and its perceived functional and health benefits. By catering to these preferences, coffee businesses can enhance their appeal and stay relevant in an increasingly competitive market. 

“Alongside its brandable nature, it’s also convenient and healthy,” says Tom. “I think both of these attributes are high on the list of Gen Z consumers.”

How to launch your own RTD nitro cold brew

Businesses that are starting out with RTD nitro cold brew or want to create their own branded product should consider working with a private label nitro cold brew partner to minimise the risks associated with production and scaling. 

By leveraging such a partnership, businesses can reduce lead times and operational headaches while still producing a high-quality product.

Private label solutions allow businesses to test the market with minimal upfront investment, making it easier to gauge demand before committing to larger production runs. This is especially beneficial for smaller operators, who may need more capital or resources to manage full-scale production from the outset.

At Hardtank, we offer starting MOQs (minimum order quantities) of just 3,000 units per SKU, preventing our partners from having to overextend to bring a new product to market. By starting small, we are well-equipped to scale alongside you, with the capacity to deliver larger and larger orders as your business grows. 

Plus, we offer faster turnaround times than commonly provided – less than six weeks – which helps our clients react to market changes and customer trends more quickly and deliver event-specific branding, seasonal flavours and any other time-critical product. 

Most businesses need help navigating the complex world of health and safety regulations and other regulatory compliance challenges. We have best-in-class BRC-certified manufacturing facilities and deep experience working with partners across multiple geographies and industries, and we are here to support you every step of the way. 

To create your own line of RTD nitro cold brew, look no further than Hardtank private label services. Visit our website or contact our team directly to get started. 

Plus, you can still catch a recording of our latest Cold Brew Masterclass to get a taste of what’s to come!

RTD nitro cold brew