KANSAS CITY — Demanding schedules, fast-paced routines and surging made-to-order coffee beverage prices are fueling consumer interest in ready-to-drink (RTD) coffee products. 

The RTD coffee market was valued at $33 billion in 2022, and is estimated to reach $53.5 billion by 2032, according to Allied Market Research, Wilmington, Del. Sold in single-serve bottles or cans, RTD coffees are typically formulations of brewed coffee with milk, sweetener, flavoring and, increasingly, health-focused ingredients or value-added propositions. 

Laurel’s Coffee, Los Angeles, for example, uses A2 milk in its organic lattes and promotes its contribution to a healthy gut. Conventional milk contains A1 and A2 beta casein proteins. A2 milk does not have any A1 proteins, which are associated with causing adverse gastrointestinal symptoms; as a result, A2 milk is considered easier to digest than conventional cows’ milk. 

“Beverage brands are leveraging innovative ingredients, research partnerships and creative flavor reinterpretations to stand out with RTD coffee offerings and meet evolving consumer demands in a competitive market,” said Micah Greenhill, senior marketing director — non- alcoholic beverages for ADM, Chicago. “Coffee continues to fit the ‘little treat’ mentality, with an emphasis on indulgence and dessert-style flavors.” 

Consumers are shifting toward healthier formulations, even when seeking indulgence. The RTD coffee beverage category addresses the preferences and offers convenience at a lower price point than may be found at companies like Starbucks, Dutch Bros. and other made-to-order coffee shops. 

“RTD coffees with added protein, fiber, biotics and botanicals may entice consumers who desire functional ingredients in foods and beverages,” Greenhill said. “For example, a pre-pandemic trend that might soon rebound is high-protein coffee. Protein powders…can transform an indulgent coffee shake into an on-the-go breakfast option that helps consumers feel fuller longer.” 

Quest Nutrition, a Simply Good Foods Co. brand, has added RTD iced coffee to its portfolio. All of the company’s products are formulated with dairy proteins. A new 10-oz shelf-stable, plastic-bottled beverage comes in mocha latte and vanilla latte flavors. Coffee is the first ingredient, followed by cream, milk protein isolate and milk protein concentrate. 

Stamford, Conn.-based Throne Sport Coffee is the brainchild of star NFL quarterback Patrick Mahomes and beverage industry veteran Michael Fedele. The beverage is formulated for health-conscious consumers seeking a better-for-you option to fuel their active lifestyles. Each 11-oz can features the company’s proprietary Coffee PLUS+ formula that contains 150 milligrams of natural caffeine, 100% of the Daily Value for B vitamins, electrolytes and branched-chain amino acids.  

“Unlike sugary coffee shop drinks or artificial energy beverages filled with unrecognizable ingredients, Throne Sport Coffee is designed for performance-driven individuals seeking a clean, functional boost,” Fedele said.  

Healthee USA, Rancho Cucamonga, Calif., is introducing RTD Protein Cold Brew Latte in three formulations: bone sea salt caramel; joint chocolate; and skin, hair and nails French vanilla. Each variety includes micellular casein isolate and bioactive collagen peptides and targets a specific wellness issue. An 8-oz can contains 70 calories and 15 grams of protein. The drinks have no added sugars and are sweetened with stevia.  

The cold brew coffee segment dominated the global RTD coffee beverage market in 2022 and is anticipated to maintain its dominance, according to Allied Market Research. The brewing process involves steeping ground coffee in cold water for an extended period. The process results in a less bitter and concentrated beverage and appeals to consumers seeking refreshing and less acidic options. The flavor profile also lends itself to the need for less sweetener, which is often used to mask acidity.   

“Cold brew is making a comeback as a healthy alternative to other beverages in this space,” said Bayyana Davis, senior category marketing manager for beverage at IFF, South Brunswick, NJ. “Cold brew is often perceived as a healthier option compared to hot coffee, due to its lower acidity. This makes cold brew perfect for many gut health-conscious consumers. Coffee brands have taken note of the growing trend and are offering a large variety of RTD cold brew beverages to consumers, both in retail and online.”  

Equator Coffees, San Rafael, Calif., a roaster and coffee chain, is entering the RTD sector with organic cold brews in 8.5-oz glass bottles. The beverages undergo an 18-hour cold brew to “deliver a café experience on the go for those who demand unparalleled quality,” according to the company.  

Another new cold brew brand that recently entered the marketplace has a celebrity connection. New York-based Happy was founded by actor Robert Downey Jr. and Craig Dubitsky, an entrepreneur who helped launch brands such as Hello, EOS and Method.  

Seattle Strong Coffee, Seattle, steeps its coffee grounds in cold water for 12 to 24 hours. The company takes its canned beverage an extra step by infusing it with nitrogen for a frothy finish. The cans are meant to be shaken to activate the nitrogen.  

“Texture is an important aspect of beverage enjoyment, and it’s being incorporated in different ways in RTD coffee,” Greenhill said. “Many are foamy and frothy, providing a rich mouthfeel. Vanilla flavors can provide a perception of creaminess in these offerings.” 

ADM’s vanilla offerings include organic, Fair Trade, non-GMO and alcohol-free extracts and flavors, along with multiple-origin sources that lend nuanced taste profiles to RTD coffees. Madagascan vanilla, for example, delivers the classic bourbon and raisin notes that consumers widely recognize, while Ugandan vanilla adds creamy and balsamic tones.  

“Indonesian beans offer a smoky, woody profile that pairs well with chocolate, and Papua New Guinea vanilla provides floral, fruity and marshmallow-like characteristics,” Greenhill said. “Vanilla is the perfect companion for dairy flavors in RTD coffee beverages, using either traditional dairy or milk alternatives. In plant-forward formulations, vegan flavors that emulate true-dairy taste like fresh milk or sweet cream are critical for consumer acceptance. 

“Flavor modulation technology helps deliver a truly indulgent experience. Our natural flavor modulation technology helps build the creamy mouthfeel and rich flavor profiles that may be lost in dairy-reduced or dairy-free beverages, as well as in low-fat and reduced-sugar formats. Plus, our flavor masking technology mitigates potential off-notes from certain plant-based ingredients used in dairy alternatives for RTD coffee drinks.” 

Category innovation 

Beverages, including RTD coffee, are ripe for sugar reduction and the incorporation of alternative sweetening solutions. Fifty-seven percent of US consumers say they review sweetening ingredients on beverage product labels, according to ADM Outside Voice research. 

“It’s crucial for formulators to start with quality sweeteners and find synergies within a sweetening system, considering factors like taste, texture, functionality, stability and solubility,” Greenhill said. “We use a holistic formulation method, which replaces sweetness, rebalances flavor and rebuilds functionality, alongside our high-quality, low- and no-calorie sweeteners, to build systems addressing both performance and value.”  

Meghan Sutton, category marketing lead for Tastepoint by IFF, Philadelphia, said, “While cold brew has certainly hit mainstream status in the retail market, there’s still a ton of room for innovation in the RTD arena. The top trends we’re spotting include creative flavors, novel formats and hybrids, added functional ingredients, premiumization, and sustainable and ethical sourcing. The key is to balance taste and benefits as consumers continue to welcome innovation, expecting their beverages to satisfy multiple needs.” 

Vanilla remains the most popular flavor in new launches of RTD coffee products, with other sweet brown flavors like caramel, chocolate, hazelnut and maple claiming the other tops spots, according to Mintel International, Chicago.  

“Seasonal flavors such as peppermint and pumpkin spice are also prevalent, and fruit-forward flavors like citrus and coconut are breaking through into mainstream,” Sutton said. “Beyond the top flavors, we’re seeing more brands getting creative and premium with their new flavor launches, from elevated versions of classic sweet brown flavors (e.g. brown sugar cinnamon, salted vanilla, etc.), to seasonals beyond pumpkin spice (e.g. strawberry mocha, gingerbread, etc.), cross-category indulgent profiles (e.g. speculoos, blueberry cobbler, etc.), botanicals (e.g. hibiscus, lavender, etc.) and fruity combinations.”  

Philip Caputo, marketing and consumer insights manager at Virginia Dare, Carteret, NJ, said, “Today’s formulators are developing fine-tuned, multi-sensory experiences that go beyond just taste. Texture, foam, froth and inclusions like boba, floating particulates or even shimmering effects all play a role in how consumers perceive and enjoy a beverage. By balancing these elements with flavor and aroma, we help brands create cohesive, engaging drinking experiences that stand out in the RTD market.”