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Insight of the Day: The RTD coffee market is changing: What roasters need to know

Key takeaways:

  • The RTD coffee market is experiencing significant growth, driven by consumer demand for convenience, quality, and diverse flavors.

  • Consumer preferences are evolving, with a focus on affordability, health consciousness, and sustainability.

  • Roasters can capitalize on this trend by offering high-quality, innovative RTD products that cater to these changing preferences.

  • The use of new technologies, such as cold brew and concentrate systems, can help roasters improve efficiency and create unique flavor profiles.

  • Collaboration with co-packing partners can help roasters manage costs and meet health and safety standards.

Trend:

  • The RTD coffee market is rapidly expanding, with a growing emphasis on quality, affordability, and health-conscious options.

Consumer Motivation:

  • Convenience: Consumers seek quick and easy access to coffee on the go.

  • Quality: Consumers demand high-quality coffee with diverse flavor profiles.

  • Price: Consumers are increasingly price-conscious due to inflation and rising costs.

  • Health: Consumers are looking for healthier options, such as dairy-free and sugar-free RTD coffee.

  • Sustainability: Consumers are increasingly interested in environmentally friendly products.

Driving Trend:

  • Changing lifestyles: Busy lifestyles and the desire for convenience are driving the demand for RTD coffee.

  • Evolving consumer preferences: Consumers are seeking higher quality, healthier, and more sustainable options.

  • Technological advancements: New technologies are enabling roasters to create innovative and diverse RTD products.

Target Demographic:

  • Primarily Gen Z consumers, who have high spending power and prioritize convenience and health.

Product/Service:

  • Ready-to-drink (RTD) coffee, including flavored drinks, plant-based milk options, and functional ingredients.

Conclusions:

  • The RTD coffee market presents a significant opportunity for roasters and coffee shops.

  • To succeed in this market, businesses need to stay ahead of the curve by offering high-quality, innovative, and affordable RTD products that cater to evolving consumer preferences.

  • Embracing new technologies and collaborating with co-packing partners can help businesses streamline operations and meet consumer demands.

Implications for Brands:

  • Brands need to focus on innovation, quality, and affordability to remain competitive in the RTD coffee market.

  • They should cater to the evolving preferences of consumers, offering diverse flavors, plant-based milk options, and functional ingredients.

  • Brands should leverage new technologies to improve efficiency and create unique flavor profiles.

  • Collaboration with co-packing partners can help brands manage costs and ensure product safety.

Implications for Society:

  • The growth of the RTD coffee market could lead to increased convenience and accessibility to high-quality coffee.

  • The focus on health and sustainability could promote healthier consumption habits and environmentally friendly practices.

Big Trend Implied:

  • The shift towards convenience, health consciousness, and sustainability in the food and beverage industry.

  • The increasing importance of innovation and technology in meeting evolving consumer demands.

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