In this article, you’ll learn:
- How popular RTD cold brew coffee is and what’s driving its growth
- What consumers – particularly Gen Z – look for in RTD cold brew
- Why working with a private label partner can be an effective route to market
Cold brew coffee might have started life as a niche menu item, but its exceptionally smooth mouthfeel and rich flavour meant it quickly built a loyal following. As more consumers prioritise healthier beverage choices, it has gained traction as a functional drink that delivers on both taste and wellness.
To better understand the extent of its reach, I spoke to Ramzi Marji, founder and Managing Director of Andrew’s Cold Brew Coffee. Read on for his insights.
Is RTD cold brew becoming more popular?
Yes. Historical data shows RTD coffee has been growing by around 8% year-on-year since 2020, with North America leading the category at around 57% of global growth, followed by Europe and the Asia Pacific. Industry forecasts estimate an average annual growth rate of 8.4% over the next five years.
The growth of RTD cold brew coffee is a response to evolving consumer interests, especially those of the younger generation. Up to 58% of younger consumers, particularly Gen Z, are willing to pay a premium for beverages that offer health benefits.
“RTD is becoming more popular as an efficient, convenient option,” explains Ramzi. “This is especially the case for Gen Z who are leading consumer demand.”
Its natural sweetness and smoothness minimises the need for sweeteners or additives – making it a healthier choice overall. Meanwhile, its naturally high caffeine content also appeals to those seeking clean energy, with benefits including improved metabolism, digestion, and heart health.
Cold brew coffee itself is also highly customisable, serving as a base that can be paired with personalised flavours, milk alternatives, or toppings. More businesses are introducing variants such as nitro cold brew to keep up with evolving consumer preferences.
For those looking to enter this space, there has never been a better time to capitalise on a beverage category that continues to grow in popularity and demand.
What do consumers look for in RTD cold brew coffee?
Research shows that 75% of younger coffee drinkers are choosing to personalise their beverages with add-ons such as plant-based milks, flavoured syrups, and functional ingredients.
Cold foam is a particularly popular add-on for cold brew coffee, and can be enhanced with flavours such as matcha, salted caramel, or lavender. Cafés are also pushing cold brew coffee customisation further, with add-ons such as salted cheese foams, cereal-infused milks, fruit-forward coffee drinks, and even tea and coffee combinations.
There’s a growing appetite for new flavours, and brands are responding with bold, globally inspired tastes. For example, more than 30% of consumers in the US attribute their newfound love for iced coffee to a desire for variety and novelty. This is reflected across the industry, with coffee shops, both small and large, recording increased sales from customised cold beverages.
The overall cold brew market has grown 300% since 2016. As more millennials and Gen Z consumers move away from alcohol and sugary carbonated drinks in favour of functional beverages, both cold brew and nitro cold brew have emerged as compelling alternatives.
“We can sense the strong movement towards RTD in the Gulf Cooperation Council (GCC),” Ramzi explains. “This is why we are expanding our product range beyond cold brew coffee.”
Cold brew beverages can be served fresh or offered as a takeaway, with aluminium cans being the format of choice for most RTD brands, as it is more durable and sustainable.
Hardtank stays ahead of these trends with a versatile portfolio spanning classic cold brew, vegan milky coffees, and new flavours such as tonic cold brew, craft ice tea, and oat matcha latte.
What is the most effective way to launch RTD cold brew coffee?
For businesses looking to enter this space, success comes down to two things: producing cold brew in formats that meet evolving consumer expectations, and the capacity to scale and keep up with growing demand.
“Coffee businesses, brewers, and beverage manufacturers should be able to adapt to the trends and provide more options and varieties to the consumers,” Ramzi explains.
For those producing in-house, traditional preparation methods tend to be time-consuming and are more likely to produce inconsistent results. Private label solutions – such as Hardtank’s ready-to-market recipes as well as custom formulas – offer a fast and reliable path to entering the RTD coffee market.
Ramzi says that there has never been a better time to capitalise on the RTD cold brew category: “Nitro cold brew coffee RTD is taking a fair share in the coffee scene, so it’s the perfect time to scale up.”
When it comes to flavour innovation, Ramzi urges caution: “As for functional coffee, it is a bit early to scale up, especially when the studies are still ongoing with functional raw material elements, so consumers are still hesitant to give it a try, but we see a big potential in that space for the upcoming years.”
For brands ready to move from interest to action, Hardtank’s private label RTD services offer a straightforward route to market. Visit our website or contact our team directly to get started.
RTD cold brew coffee: Key Takeaways
Flavour customisation and format innovation – from nitro cold brew to plant-based options – are the key drivers for brands looking to stand out in a crowded and fast-moving market.
RTD cold brew coffee has grown consistently at around 8% year-on-year since 2020, and forecasts point to continued expansion through 2030.
Gen Z is driving demand, with 58% willing to pay a premium for functional beverages, making RTD cold brew one of the most strategically relevant categories for beverage brands right now.
RTD cold brew coffee FAQ
How popular is RTD cold brew coffee?
RTD cold brew has moved well beyond niche status. The category has grown 300% since 2016 and continues to expand globally, with younger generations at the wheel – driving demand for coffee that’s functional, flavourful, and supporting healthier lifestyle trends.
What do younger consumers want from RTD cold brew?
Personalisation is key. Younger consumers gravitate towards plant-based milk alternatives, flavoured syrups, and functional add-ons, and 58% are willing to pay a premium for beverages that deliver health benefits.
What is the best way to launch an RTD cold brew product?
For most brands, working with a private label partner is the most cost-effective route to market – it removes the need for significant equipment investment while still allowing for flexibility in flavour and format. From there, success comes down to staying close to evolving consumer trends.
Want to learn more about our private label RTD services?
- Choose your flavours: Explore our shop-to-go recipes here.
- Discover the process: Read up on how our private label RTD services work.
- Speak to an expert: Contact the Hardtank team.
