The ready-to-drink coffee boom - A revolution that speaks to Gen Z

In the world of coffee, a new trend is capturing the attention of younger consumers: ready-to-drink coffee, or RTD (Ready-To-Drink).

This segment includes a variety of cold-brew coffee drinks, such as iced coffee, cold brew and even nitro coffee. While the traditional version of hot coffee remains a timeless classic, it is clear that Gen Z increasingly prefers the convenience and freshness of RTD options. This evolution in coffee consumption has not gone unnoticed by the big players in the industry, who have invested heavily in this growing market.

Gen z and RTD coffee - A lifestyle choice

Gen Z, known to be the most digitally connected and trend-conscious generation, has shown a strong predilection for RTD coffee. This consumer group is looking for beverages that fit their fast and dynamic lifestyle, where convenience is key. Ready-to-drink coffee offers the possibility to enjoy good coffee anywhere, anytime, without sacrificing quality. Furthermore, cold coffee, with its innovative variants such as Cold Brew and nitro, represents a taste experience that perfectly meets the needs of a generation that is always looking for something new.

Cold brew and nitro - Innovation in the glass

Among the RTD coffee variants, Cold Brew and Nitro coffee are rapidly gaining popularity.

Cold Brew, obtained through the cold brewing of ground coffee, is characterised by its smooth and less acidic flavour compared to hot coffee. This characteristic makes it particularly popular within young consumers looking for a lighter and more refreshing alternative.

Nitro coffee, on the other hand, introduces a touch of innovation with the addition of nitrogen, which creates a creamy texture and a unique drinking experience, similar to that of a craft beer. These variants not only satisfy the Gen Z palate, but also offer an opportunity for brands to differentiate themselves in the competitive coffee market.

Beverage giants bet on RTD

Large beverage companies have not wasted time in capitalising on the growing popularity of RTD coffee. PepsiCo, for instance, entered into a strategic partnership with Starbucks to distribute the coffee giant's ready-to-drink coffee in the US. This collaboration has enabled Starbucks to reach an even wider audience by leveraging PepsiCo's extensive distribution network. Similarly, Nestlé and Starbucks joined forces to expand RTD coffee's presence in Asia, Oceania and Latin America, markets with huge growth potential.

Another significant example is Coca-Cola, which acquired Costa Coffee, the world's second largest coffee chain. Coca-Cola recognised the RTD segment as one of the keys to the growth of the Costa brand, aiming to meet the demand for ready-to-drink coffee through a diversified range of products. These strategic moves demonstrate how the beverage giant is investing significant resources to dominate the RTD coffee market, anticipating the needs of younger, more dynamic consumers.

The future of RTD coffee - Innovation and sustainability

Looking to the future, ready-to-drink coffee will not only continue to evolve in terms of flavours and variations, but will also have to face the challenge of sustainability. Gen Z is not only attentive to new trends, but is also particularly sensitive to environmental issues. Consequently, brands that can combine innovation and sustainability will have a significant competitive advantage. From eco-friendly packaging to the use of organic and fair-trade ingredients, the RTD coffee industry will have to adapt to these new demands in order to remain relevant in the market.

In addition, technology will play a crucial role in shaping the future of RTD coffee. Innovations in production and distribution, combined with increasingly targeted marketing strategies based on data analysis, will enable brands to respond precisely to consumer needs. The use of advanced technologies, such as artificial intelligence to personalise the consumption experience, could represent the next big revolution in the ready-to-drink coffee sector.

Ready-to-drink coffee is not just a passing fad, but a deep transformation in the way consumers, particularly Gen Z, relate to this iconic beverage. Convenience, variety of flavours and continuous innovation make RTD coffee an irresistible choice for those who are always on the go.

While traditional coffee retains its place of honour, RTD coffee is fast becoming an essential element in the global beverage landscape. With a focus on innovation and sustainability, the future of ready-to-drink coffee is bright, promising new taste and convenience experiences for a generation that never stops looking for the best.