What's Standing Out In The Crowded RTD Coffee Category – CoffeeTalk

The ready-to-drink (RTD) coffee market, valued at $33 billion in 2022, is expected to reach $53.5 billion by 2032. RTD coffees are typically formulations of brewed coffee with milk, sweetener, flavoring, and health-focused ingredients or value-added propositions. Brands like Laurel’s Coffee, Los Angeles, use A2 milk in their organic lattes to promote a healthy gut, as conventional milk contains A1 and A2 beta casein proteins.

Beverage brands are leveraging innovative ingredients, research partnerships, and creative flavor reinterpretations to stand out in the crowded RTD coffee category. Consumers are shifting toward healthier formulations, even when seeking indulgence. The RTD coffee beverage category addresses 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. High-protein coffee, for example, 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 which are formulated with dairy proteins. Throne Sport Coffee, a beverage designed for health-conscious consumers seeking a better-for-you option to fuel their active lifestyles, 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. Healthee USA is introducing RTD Protein Cold Brew Latte in three formulations: bone sea salt caramel, joint chocolate, and skin, hair and nails French vanilla.

Cold brew coffee has become a dominant market in the global RTD coffee beverage market, with its lower acidity making it an appealing option for consumers seeking refreshing and less acidic beverages. Coffee brands are offering a wide variety of RTD cold brew beverages to consumers, both in retail and online.

Equator Coffees, a roaster and coffee chain, is entering the RTD sector with organic cold brews in 8.5-oz glass bottles, delivering a café experience on the go. Happy, founded by actor Robert Downey Jr. and entrepreneur Craig Dubitsky, is another new cold brew brand that has a celebrity connection. Seattle Strong Coffee steeps its coffee grounds in cold water for 12 to 24 hours, infusing it with nitrogen for a frothy finish.

Texture is an important aspect of beverage enjoyment, and 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 delivers classic bourbon and raisin notes, 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.

Flavor modulation technology helps deliver a truly indulgent experience by building 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. Flavor masking technology mitigates potential off-notes from certain plant-based ingredients used in dairy alternatives for RTD coffee drinks.

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. It is crucial for formulators to start with quality sweeteners and find synergies within a sweetening system, considering factors like taste, texture, functionality, stability, and solubility.

Meghan Sutton, category marketing lead for Tastepoint by IFF, says that while cold brew has hit mainstream status in the retail market, there is still a ton of room for innovation in the RTD arena. The top trends include creative flavors, novel formats and hybrids, added functional ingredients, premiumization, and sustainable and ethical sourcing. By balancing taste and benefits as consumers continue to welcome innovation, brands can create cohesive, engaging drinking experiences that stand out in the RTD market.

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