Ready for more?
In part six of Drinking Different, we explore the expanding world of ready-to-drink beverages. Which products are trending and what sets them apart?
Ready-to-drink (RTD) beverages are just what the name suggests. Ready to drink, in often single-serve packs, whenever and wherever. This broad but niche segment has been growing in leaps and bounds with an expanding repertoire of products. And as per projections, the upward swing is likely to continue as consumer demands grow.
So, what is driving this segment?
Though it would seem that convenience is the primary driver that makes consumers opt for ready-to-drink beverages, there is more to it. Other factors, like taste, new formulations, international flavours, functional benefits, and affordability, are playing their part too.
But what constitutes the most popular categories in ready-to-drink beverages?
Tea, coffee or RTD?
Traditional warm drinks that were either brewed at home or in coffee shops are common on the supermarket shelves today in a new persona. RTD coffee and tea are on the upswing as more consumers opt for these over carbonated drinks. Cold-brew RTD coffee is a top favourite with varied options on offer, including plant based. And RTD tea products are growing beyond the traditional to include botanicals and functional ingredients.
Better for you
That is the buzzword today. The role of functional benefits in consumer preferences cannot be downplayed, as we saw in our Functionality Rules series. And this is especially true for RTD products, which appeals to a consumer demographic that wants to prioritise their health but cannot spare the time and effort. No wonder RTD beverages that are good for you and contain natural ingredients are trending, be it kombucha, kefir, coconut water, or botanicals, among others. Interestingly, even RTD cocktails are being marketed with functional ingredients. Hard kombucha or vitamin seltzer, anyone?
Keeping spirits high
Once considered a budget drink, RTD alcohol has evolved to rule the market with a wide range of offerings, even in the premium segment. From malt-based and wine-based drinks to signature cocktails and spiked coffee – there is a drink for everyone. Reduced alcohol content and flavour innovations are among the reasons for its popularity. As major brands come in with new offerings, this segment is likely to go only upwards.
Ready to grow with the right packaging
As ready to drink is ready to grow, it is critical for brands to stand out in more ways than one. This is where packaging comes in. Today’s consumers want products that suit their lifestyles and value systems. And SIG can help differentiate your product with its wide range of sustainable packaging formats, suited for RTD tea and coffee and alcoholic beverages.
Our technology can also help elevate your RTD products. For example, you can add chewable pieces to your functional beverages using drinksplus or offer warm RTD beverages using Heat&Go.
In the next and final part of our Drinking Different journey, we will look back at the different categories and how they have evolved. To get the roundup and other interesting insights relating to the food and beverage industry across the world, subscribe to our exclusive bi-weekly newsletter, SIGnals Update.