For roasters and other brands, RTD coffee has proven to be a lucrative segment in recent years, and it remains fast-growing – but that’s not to say it’s easy to enter the market.
This is because consumer trends are constantly evolving. People want more from the beverages they drink, rather than just RTD coffee in a can or a bottle – and quality has become a major differentiator.
However, the RTD coffee market is evolving. Due to a rising C price, drinks businesses need to keep costs down without sacrificing quality. Product diversification is a major trend, with nutrient-fortified, probiotic, and herbal drinks dominating the non-alcoholic beverage market in 2024. Equally, consumer trends towards functional drinks will change the range of beverages businesses should offer alongside traditional RTD coffee.
The demand for RTD coffee is already established and strong, so there is room for evolution in the industry. We’ll take a look at some of the emerging trends in the RTD beverage industry over the next year.
The impact of rising coffee prices on RTD products
In the RTD coffee sector, new products are emerging at a staggering rate. In 2023 alone, more than 200 new RTD coffee products were introduced. Companies like Starbucks and Costa now have their own RTD coffee products on shelves, competing with specialty coffee businesses for sales.
Due to the breadth of options on the market, the ready-to-drink coffee sector is expected to reach a value of $64 billion by 2032. It is predicted to grow at a CAGR (Compound Annual Growth Rate) of 8.54% – but current instabilities within the global coffee industry could impact this.
In February 2025, the C price – the global benchmark for arabica coffee – reached a record high of $4.30/lb. This means it is more expensive than ever to purchase coffee for canned RTD beverages, significantly reducing profit margins.
Fluctuations in the C price are expected to continue with no end in sight, making coffee a less stable commodity for guaranteeing profits. Not only will businesses struggle to predict how much coffee will cost, but coffee producers may also charge more than initially agreed due to the higher value.
For these reasons, it may be better to wait until later to release new RTD coffee products. Instead, there is plenty of opportunity in other RTD products, which are alternatives that keep operational costs down and preserve your margins.
Are there more affordable options on the market?
Due to the industrial instability around coffee, drinks businesses should look to emerging RTD alternatives to grow in 2025. This means you can leverage your existing private label partnerships and branding but use more affordable raw materials to prepare the drinks.
Ready-to-drink tea is currently the most viable option. This sector is expected to reach a value of $12 billion by 2034, growing at a CAGR of 6%. In the United States, 30% of consumers drink iced tea at least four times a week. Compare that to iced coffee, which 26% of consumers drink as many times a week, and there’s clearly a market for RTD tea products.
One of the benefits of serving RTD tea drinks is the lower associated production costs. Compared to historically high coffee prices, green tea, black tea, oolong, and other fruit teas are relatively inexpensive.
In 2025 so far, the $/lb cost for black tea has averaged between $2.14 and $3.05, which is notably lower than coffee’s price. With less volatile pricing fluctuations, you can reliably forecast the cost of buying tea to prepare RTD drinks and plan your products accordingly.
However, there are plenty of other RTD options to consider outside of tea. Tonics containing botanical ingredients, vitamin-infused sparkling water, and antioxidant formulations are also growing in popularity, for example. 47% of consumers prefer beverages with added nutrients, so fortified premium beverages are equally enticing market options.
The same can be said for sugar-free, healthy energy drinks derived from natural ingredients. Sources such as yerba mate, stevia, and L-theanine provide sweetness and energy that appeals to consumers wanting low-calorie, “clean” energy. RTD sports and energy drinks are expected to grow at an annual rate of 5.82% until 2032, making it a long-tail option for the shifting RTD market.
Functional products & other market categories
Alongside RTD coffee and tea products, RTD wellness drinks are a vastly emerging sector that is likely to outpace the growth of private label cold brew in 2025. As such, it is a worthwhile opportunity for businesses to grow their RTD market operations in 2025.
Functional RTD products span a range of characteristics and effects. Popular beverages include lion’s mane infusions, a functional mushroom that promotes cognitive function and the development of nerve cells. You can also consider antioxidant-rich matcha RTD drinks, which contain L-theanine. This is an amino acid that increases alertness without the side-effect of drowsiness occasionally caused by caffeine.
Similarly, nootropic and adaptogenic blends contain ingredients such as ashwagandha, an evergreen shrub commonly used to relieve stress. Combined with reishi mushrooms, which support the immune system and promote healthy sleep, you can appeal to a range of wellness concerns.
To promote recovery for active lifestyles, you can also consider collagen-infused coffees and matcha drinks that support joint, muscle, and skin health. The RTD wellness sector is growing at an annual rate of 8%, outpacing both RTD coffee and tea products.
The demand for RTD functional beverages is particularly resonant with younger consumers aged 18 to 34. Not only do they prefer low-sugar drinks containing no artificial colours and sweeteners, but they also value energy and flavour as top concerns. By combining broader wellness demands with natural ingredients and formulations, you can grow significantly in the RTD market.
Going to market with private label RTD
We spoke to Calum Hill, Head of Brand Development at Leiho, for his insight into the changing RTD landscape in 2025. “There is growing demand for premium, convenient, and sustainable RTD drinks,” he says. “The industry is always crying out for new, innovative, and efficient technology.”
At Hardtank, we offer a range of specialty-grade private label RTD products to position yourself alongside 2025’s emerging trends. “Cutting-edge private label RTD technology aligns with key trends – offering high-quality, eco-conscious, and on-the-go RTD drinks that resonate with today’s consumers,” Calum adds.
Our private label RTD products include traditional RTD coffee as well as RTD iced tea, wellness drinks with probiotic, nootropic, or adaptogenic properties, and tonics. Our manufacturing process is collaborative and customisable, spanning from custom formulations to digital printing and labelling.
Looking to expand your RTD line with wellness, tea, or coffee innovations? Partner with Hardtank for custom, on-trend private label RTD solutions – visit our website or get in touch with us directly.
