RTD coffee: Convenience and energy boosting – but what comes next?
A Market on the Rise
According to GlobalData, global RTD coffee sales reached 7.732 million litres in volume and USD 37.775 million in value in 2023. While volume is expected to grow modestly at a CAGR of 1.52% through 2028, market value is forecasted to increase at a significantly higher CAGR of 3.67%. This divergence signals an important shift toward premiumisation—consumers are willing to pay more for value-added coffee beverages.
Europe, in particular, has emerged as a high-growth region. Hungary, Portugal, and Austria reported the fastest year-on-year volume growth in 2023, with a combined CAGR of around 10%. While their total consumption remains small compared to global leaders like Japan, the US, and China, the rapid growth indicates strong potential in emerging markets.
Coffee: A Global Flavour Icon
Coffee’s global appeal is undeniable. "Coffee is one of the top three most consumed beverages worldwide—alongside water and tea," says Susanne Winter, Head of Marketing at esarom. Recognising its universal allure, esarom has named coffee the "Flavour of the Year" for 2025.
Its deep, roasted aroma and complex sensory profile—featuring nutty, chocolatey, and sometimes fruity undertones—make coffee more than just a beverage. It's an experience. Winter notes, "These roasted and nutty tones make coffee more than a flavour—they create a sensory moment. Coffee is incredibly versatile across categories, from beverages to confectionery."
Innovation in Flavour: Beyond the Classics
Cappuccino and café latte continue to dominate the RTD coffee landscape, alongside espresso, macchiato, and iced coffee. These five styles account for 70% of global product launches over the past three years. Flavour enhancements such as chocolate, vanilla, and caramel are the most frequently used additions, appealing to consumers seeking indulgence.
In China, 45% of RTD coffee consumers cite added flavours as a key purchase factor.⁴ Chocolate and caramel top the list, offering comfort and indulgence during consumption. Yet, innovation doesn’t stop there. Forward-thinking manufacturers are exploring unconventional pairings such as:
Ginger
Salted caramel
Strawberry
Cherry
Orange
Tonka bean
These combinations offer exciting new sensory experiences for consumers looking to break away from traditional profiles.
Energy – and So Much More
Globally, the primary reason people drink coffee remains the same: energy. Nearly 60% of French, Italian, and Polish consumers report they would struggle to get through the day without it. However, consumer desires are broadening. In a recent GlobalData survey, over 40% of respondents said they wanted to feel “energized” after drinking coffee, while nearly 20% sought a feeling of calm and relaxation. About 14% were looking for refreshment.
This variation highlights an opportunity to tailor RTD coffee products to different mood states—energising for mornings, relaxing for evenings, and refreshing for midday.
Personalisation and Functional Benefits
In line with the global trend toward individualisation, coffee brands must consider diverse consumer needs. In a global study, more than 50% of consumers reported that personalised food and beverage products “always” or “often” influence their purchasing decisions.³ RTD coffee is ideally positioned to meet this demand through functional add-ins and mood-based formulations.
As a healthier alternative to traditional energy drinks, RTD coffee appeals to consumers seeking reduced sugar and clean energy sources. There is also growing interest in “better-for-you” coffee drinks enriched with:
Protein
Vitamins
Calcium
Fibre
In the UK, 48% of coffee drinkers expressed interest in health-enhancing supplements added to their coffee. These additions allow RTD coffee to evolve into a hybrid product that addresses both energy and wellness.
Coffee as Comfort and Calm
While coffee is often seen as an energiser, it also plays a soothing role. Around 18% of global consumers express interest in coffee products that offer calming effects. This dual nature—stimulating and comforting—makes coffee uniquely adaptable to varied consumption contexts.
Post-pandemic, the desire for comfort has surged. In 2023, 63% of German consumers said that moments of pleasure and happiness had become essential for coping with everyday stress. Flavoured coffee, particularly variants with chocolate, emerged as a favourite indulgence across most regions. As a result, coffee is increasingly seen not just as fuel, but as a treat—a moment of calm in a hectic day.
This trend has also opened the door for coffee drinks infused with calming ingredients like CBD or adaptogens, offering a more holistic sensory and functional experience while reducing the risk of caffeine-induced anxiety or fatigue.
Cross-Category Innovation and Regulatory Challenges
The intersection of health, indulgence, and functionality is blurring category lines. RTD coffee is evolving into hybrid formats, such as pre-workout drinks, post-lunch pick-me-ups, or relaxing evening beverages. This innovation, while exciting, introduces regulatory complexities, particularly around health claims and functional ingredients.
Still, the opportunity is vast. Premium, multifunctional RTD coffees can cater to evolving consumer expectations for natural ingredients, reduced sugar, and clear functional benefits. Market dynamics support this trend, as value growth continues to outpace volume—indicating that consumers are willing to invest in products that deliver more than just caffeine.
The Final Word: Taste Still Reigns
Despite rising interest in health, personalisation, and innovation, one element remains constant: taste. Across all demographics and categories, flavour is still the number one driver behind food and beverage purchases. As Susanne Winter of esarom notes, "It is crucial to develop flavour profiles that are unique and create incomparable taste experiences.”
To succeed in the next chapter of RTD coffee, brands must balance innovation with authenticity, delivering a sensory journey that’s energising, comforting, and above all—delicious.
References
GlobalData Market Analyzers. Accessed June 3, 2024.
Esarom. Flavour of the Year 2025: Coffee.
GlobalData 2024 Q1 Global Consumer Survey.
KuRunData/Mintel (2023). Survey of 1,689 Chinese internet users aged 18-59.
Mintel UK Consumer Survey (2023).
GlobalData 2024 Q1 Hot Topics Consumer Survey.
Source: BeverageDaily