At 25GRAMS, we are passionate about coffee and strive to deliver the highest quality bottled cold brew. We specialize in crafting high-quality, ready-to-drink (RTD) cold brew beverages that not only meet the demands of modern consumers but also celebrate the artistry of specialty coffee. The rise of RTD coffee, especially cold brew, is one of the most significant transformations we've seen in the coffee industry in recent years. It’s not just a trend—it’s a paradigm shift in how people experience coffee. But what’s fueling this explosion in popularity, and where is the RTD coffee market headed? Let’s dive deeper and explore the key factors at play.

The global surge of RTD coffee

The ready-to-drink (RTD) coffee market has become a global phenomenon, reflecting the ever-growing desire for convenient, high-quality beverages. In 2022, the RTD coffee market was valued at approximately $33.0 billion, with experts predicting it will soar to $53.5 billion by 2032. This represents a compound annual growth rate (CAGR) of around 5%, signaling the market's robust expansion. The RTD coffee sector has evolved beyond just a niche offering—it has become a mainstream category that spans all regions and demographics.

But why the sudden shift? The answer lies in the intersection of three major factors: convenience, quality, and health consciousness. Consumers are increasingly prioritizing convenience without compromising the flavor and experience they’ve come to expect from specialty coffee. Whether it's a cold brew on-the-go during a busy workday or a quick pick-me-up on a weekend adventure, RTD coffee is filling a vital need in people’s increasingly fast-paced lives.

Moreover, this boom in the global market isn’t restricted to just one or two regions—it’s spreading worldwide, with RTD coffee gaining major traction in emerging markets like Asia and Africa. This diversification highlights how ready-to-drink coffee is no longer limited to traditional coffee-drinking countries, but has found a place in the hearts and hands of coffee drinkers around the world.

Regional Growth: Europe and Beyond

The RTD coffee market is experiencing rapid growth beyond its traditional strongholds like the U.S. and Japan. Europe, in particular, is set for explosive expansion, with the market projected to reach €6 billion by 2025. What’s driving this growth?

In part, it's a result of increased consumer awareness and an expanding variety of available products. Europeans are increasingly recognizing the appeal of RTD coffee, and this growing awareness is being coupled with improved availability across retail and e-commerce channels. The rise of specialty coffee shops and third-wave coffee culture has also played a major role in shifting coffee drinkers' expectations. As coffee culture continues to evolve, consumers are more discerning about their choices, leading to a spike in demand for premium RTD coffee options like cold brew.

Additionally, European consumers have embraced convenience without sacrificing the high-quality, artisanal flavors they love. With the help of innovative brands and the increasing popularity of cold brew, Europe is quickly catching up to other regions in terms of RTD coffee consumption.

The Economic Forces driving Change

As we all know, economic trends have a profound influence on consumer behavior, and the RTD coffee market is no exception. In some regions, economic slowdowns and rising costs of living have led to shifts in how people approach their daily coffee rituals. Consumers facing economic uncertainty are becoming more budget-conscious and looking for alternatives to expensive café coffee. Instead, many are turning to cost-effective solutions like pre-packaged cups of ice and instant iced coffee kits that allow them to create their own DIY iced coffee at home.

While some might assume that economic downturns spell doom for premium products, the RTD coffee market is showing that there’s room for affordable, high-quality options that meet the needs of both cost-conscious and quality-driven consumers.

Moreover, the rise of e-commerce has made it easier than ever for consumers to access a wide variety of RTD coffee products, from traditional cold brews to innovative coffee drinks like nitro lattes or sparkling coffee beverages. Online shopping provides the added convenience of home delivery, further fueling the demand for RTD coffee options. In this sense, the growing global trend isn’t just a result of consumer demand for convenience—it’s also a reflection of how shopping habits have shifted in the digital age.

Health-conscious choices fuel the popularity of cold brew

One of the most compelling reasons for cold brew coffee's meteoric rise is its health benefits. Cold brew coffee has lower acidity than traditional hot brew coffee, making it a gentler alternative for people who are sensitive to acid. This makes cold brew coffee the ideal choice for people who are sensitive to their stomach or suffer from reflux but still want to enjoy their daily cup of joe.

In addition to its smooth, mellow flavor, cold brew is also considered a healthier alternative to the sugary, high-calorie coffee drinks often found in coffee chains. Many RTD cold brew brands also focus on clean labels, offering products that are free of artificial flavors, preservatives, or added sugar. As more consumers become more conscious of what they consume, demand for healthier, natural coffee beverages has skyrocketed.

Cold brew coffee, with its higher caffeine content and naturally sweet taste, fits perfectly into this trend as it offers a rich and energizing coffee experience that is not only delicious but also has health benefits. Health-conscious consumers are looking for natural and functional beverages, and cold brew ticks both boxes.

Innovations and Market Diversification

As the RTD coffee sector continues to evolve, we're seeing an incredible wave of innovation. We are finding out the best ways to produce specialty coffee cold brew, finding out how to roast coffee for cold brew production, fine-tuning rest times and recipes, and offering a wider range of coffees available for cold brew that cater to different flavour profile preferences. 

In addition to production innovation, the packaging of RTD coffee is evolving too. Eco-conscious consumers are now more aware of the environmental impact of single-use plastic, leading brands to explore more sustainable packaging options like recyclable cans, biodegradable cartons, and reusable glass bottles.

A Look into the Future

The RTD coffee market is poised for continued growth and innovation. What was once a niche product is now a global, multi-billion-dollar industry with no signs of slowing down. As consumer preferences shift toward more convenient, high-quality, and health-conscious options, the market will continue to expand, with new flavors, ingredients, and innovations entering the scene regularly.

At 25GRAMS, we are excited to be part of this growing movement. Our commitment to excellence in crafting ready-to-drink cold brew is grounded in our belief that high-quality coffee should be accessible to everyone, anywhere, anytime. Whether you’re grabbing a bottle to fuel your morning or sipping on a refreshing cold brew in your break during a football game, we’re proud to offer an experience that elevates your coffee ritual.