In this article, you’ll learn:
- How ready to drink coffee manufacturing has evolved over the past five years
- What has made ready to drink coffee manufacturing more accessible for smaller brands to enter the market
- What separates the brands that grow from the ones that don’t
Five years ago, launching a ready to drink (RTD) coffee product as a small brand was a significant ask. The technology was limited, the ecosystem was thin, and the production reality often stopped brands before they even started.
That picture looks different today. The ready to drink sector is expected to reach a value of $64 billion by 2032, the category is no longer niche – and the window for independent brands to enter is more open than it has ever been.
To understand exactly what has changed – and what still matters – we spoke to Cristina Bularca, founder of Habitat Studio, a consultancy working with independent coffee brands on product development and market entry.
What made ready to drink coffee manufacturing so difficult – and what has changed?
The biggest barrier in ready to drink coffee manufacturing was the gap between vision and production reality.
“Five years ago the technology just wasn’t where it is today,” Cristina explains. “The equipment available for producing something like cold brew at a consistent, quality level was limited – filtration wasn’t efficient and the whole process was quite time-consuming and expensive.”
Brands would arrive with a strong concept and a clear product idea. Then they would sit down with the actual production numbers and walk away.
“You couldn’t blame them,” Cristina adds.
Beyond the equipment, the broader support infrastructure simply wasn’t there. Fewer co-packers were operating in the space. Packaging options were limited. Very few companies were building solutions specifically for smaller volumes.
Cold coffee traditionally required a lot of time and labour, and relied on equipment that produced a low extraction yield – making it particularly difficult for smaller operators to enter the category profitably. The result was that entry into RTD coffee manufacturing required significant capital and still delivered inconsistent results.
That picture has since shifted, and the most important change has been in production technology. “The equipment, without a doubt,” Cristina says.
“The production technology available now compared to five or six years ago is a different world – better filtration, more efficient extraction, less waste. What used to require significant investment and still delivered inconsistent results is now far more accessible and far more reliable,” she adds.
As the technology improved, the ecosystem around it grew too. More packaging suppliers entered the market. More companies started building solutions specifically for smaller volumes. The combination of better equipment and a more developed supply chain has meaningfully lowered the barrier to entry.
Where is the biggest opportunity in ready to drink coffee manufacturing for independent brands?
The opportunity is genuine – but so is the competition.
The consumer base is there and growing fast. Research found that 63% of consumers aged 18 to 34 purchased RTD coffee at least once per week – a 12 percentage-point increase since 2020.
Gen Z is driving demand, with 58% willing to pay a premium for functional beverages, making RTD cold coffee one of the most strategically relevant categories for beverage brands right now. Meanwhile, two out of three young people now regularly choose RTD and cold coffee, driven by the variety of flavours on offer.
The demand signal is clear. But Cristina is direct about what it means for brand strategy.
“Nowadays, quality alone isn’t enough to stand out anymore,” she points out. “What we see separating the brands that actually grow is clarity – knowing exactly who they’re for, why their product exists, and being consistent enough to deliver on that promise every single time.”
Consumer expectations in this space are high. People are more informed than ever, and they can sense the difference between a brand that has a clear reason to exist and one that is simply filling a gap. Cristina puts it plainly: “Consumers can feel the difference between a brand that means it and one that’s just filling a gap.”
Across the industry, an increasing number of smaller specialty coffee operators are entering the RTD market thanks to technological advancements and private label ready to drink coffee manufacturing.
The playing field has levelled – which also means the brands that stand out are the ones with the sharpest positioning, not simply the earliest movers.
For independent brands, this means that market entry is just the beginning. Clarity of positioning, consistency of the product, and a genuine understanding of the target customer drive long-term growth.
What production model works best for smaller brands entering the RTD space?
There is no single answer – and Cristina is clear about that.
“It genuinely depends on where the brand is and what market they’re operating in – there’s no one-size-fits-all answer here,” she explains. “But the things we always come back to are sustainability and quality preservation.”
Ready to drink coffee manufacturing and packaging decisions in particular, she argues, have a greater impact than most brands realise – not just on the environmental footprint but on the product itself. “The wrong format can compromise everything you’ve worked to build in the cup,” Cristina warns.
From a commercial standpoint, minimum order quantities and shelf life are among the central challenges for brands looking to enter the retail space with an RTD product. High minimum order quantities can prove unrealistic for brands in the early stages of development, while smaller manufacturers with lower thresholds may lack the ability to scale as demand grows.
Choosing a production partner that can move with the brand at each stage matters as much as the product itself. For brands at this decision point, Hardtank’s guide to white-label RTD is a useful starting point.
The principles Cristina returns to, regardless of scale or market, are consistent: protect the quality of what is in the cup first, reduce unnecessary waste where possible, and choose a format that makes sense for the culture and context in which the brand operates. Those fundamentals hold whether a brand is launching its first run or scaling into new territories.
For brands weighing up whether to invest in their own setup or partner with an external manufacturer, Hardtank’s private-label RTD overview outlines what that route looks like in practice.
Ready to drink coffee manufacturing: key takeaways
- Production technology has transformed the RTD coffee space – better filtration, more efficient extraction, and lower costs have made manufacturing far more accessible for smaller brands.
- The ecosystem supporting smaller RTD brands has grown alongside the technology, with more co-packers, packaging suppliers, and volume-appropriate production solutions now available.
- Quality gets a brand into the market – but clarity of positioning, product consistency, and a genuine understanding of the target customer are what drive long-term growth.
Looking to respond to changing RTD trends? Explore Hardtank’s solutions for RTD development and cold brew production, or contact the team to get started.
Ready to drink coffee manufacturing: FAQ
Why did so many small brands fail to launch RTD coffee products five years ago?
The combination of limited production technology, high costs, and a thin co-packing ecosystem made it very difficult for smaller brands to reach the market. When brands ran the numbers on actual production, many chose to walk away rather than take on the financial and operational risk.
What has made ready to drink coffee manufacturing more accessible for independent brands?
Improved filtration, more efficient extraction equipment, and lower production costs have been the most significant factors. As the technology matured, the supporting ecosystem – packaging suppliers, co-packers, and specialist production partners – grew alongside it, creating more viable routes to market for smaller brands.
What separates the RTD coffee brands that scale from those that don’t?
Cristina prioritises clarity above all else – knowing exactly who the product is for, why it exists, and delivering on that promise consistently. In a market where consumers are increasingly informed, the brands that grow are the ones that mean what they say, not simply the ones with the best product on paper
Want to learn more about ready to drink coffee manufacturing?
- Explore white-label RTD: Read our guide to launching your own RTD coffee product
- Discover your profits: With our ROI calculator
- Speak to the team: Contact Hardtank here
