Functional benefits top attributes U.S. consumers look for in RTD cold coffee

As National Coffee Day (September 29) approaches, consumers are looking for options beyond their typical cup of joe in favor of ready-to-drink (RTD) varieties offering functional benefits. When asked what their ideal bottled/canned cold coffee drink would include, new research from Mintel reveals that U.S. RTD coffee consumers want options that include antioxidants (47%), promote brain health (40%), are anti-inflammatory (35%), or have added probiotics (30%).

Innovation in the RTD coffee segment has contributed to its strong growth. In fact, while roasted coffee is the largest segment of the coffee category (39.2% market share), RTD coffee continues to drive the category as the fastest growing segment, increasing 31% in the last two years. Overall, total coffee retail sales in the United States are estimated to grow 4% in 2018 to reach $14.4 billion, with steady growth expected to continue through 2023.

“Innovation is vibrant and diverse in the RTD coffee segment and includes new products that are carving out sometimes surprising territory and often taking inspiration from unconventional beverage categories. What’s more, our research shows that iGeneration [Mintel surveyed those aged 18–23] consumers are more likely to drink RTD coffee than brewed coffee, indicating this is how they are entering the market,” said Caleb Bryant, senior beverage analyst at Mintel. “Consumer interest in better-for-you beverages is also shaping the market as demand for organic and non-GMO coffee or functional formulations enhanced with all-natural flavors, protein, and vitamins grows. The broader trend of beverage blurring is also opening up opportunity for innovation and brand extension, especially in the RTD segment.”

Press release