This article briefly covers private label ready-to-drink coffee (RTD). It helps you understand the private label ready-to-drink coffee beverage, then be ready to enter the market successfully. Let’s get into it now!
Ready-to-drink coffee and its market potential
Nowadays, coffee has become a popular drink among people. It’s ubiquitous, so it’s not hard for you to buy a cup of coffee on any corner of the street.
The benefits of coffee are certainly a miracle. First, a cup of coffee will immediately bring energy and alertness to you to start a new day. This effect is due to the main ingredient in coffee – caffeine, essential B vitamins, and minerals. Besides, aesthetic value is indispensable when it comes to coffee drinks in today’s modern context. You can easily understand this when an office worker holding a cup of coffee appears on a sunny street corner. Immediately, you will understand that coffee acts as a fashion accessory that embellishes the main subject in the center. Also, the feeling of emptiness that one may feel when there is nothing to hold is something to discuss. But you also can dispel that uncomfortable feeling with just a cup of coffee in hand.
However, we can easily realize that the form of experience and type of coffee is gradually diversifying. Starting from just pure roasted coffee to instant coffee, and then ready-to-drink coffee has been becoming the new trend.
You’re probably wondering why ready-to-drink coffee is so trending.
Modern context – yes, that’s the logical answer to this booming phenomenon. More specifically, consider some of the following aspects:
Convenience – Definitely the first thing to mention because you can buy RTD coffee anywhere and anytime. All this ease is due to the existence of convenience stores, supermarkets, hypermarkets, retail outlets, or vending machines. What’s more, the purchase process is quick and just pops the lid for instant use. Therefore, RTD coffee is extremely convenient for today’s busy modern life.
Price – The cost to buy a coffee drink is also something to consider. The cost of buying an RTD coffee is approximately half that of a cup of coffee at a standard store.
Diversity – Thanks to the creativity in researching unique RTD coffee recipes, you can enjoy a variety of new coffee flavors (matcha, cappuccino, espresso, caramel, …) instead of merely traditional flavors. Furthermore, there is no default limit for the capacity size (250, 400, 500ml,..). And packaging material of RTD coffee is also not an exception (cans, pet bottles, paper, cardboard-based,…). Besides, the product can be used both cold or warm, so RTD coffee is suitable in any weather condition.
Market potential of ready-to-drink coffee
Modern trends make people’s mobile lifestyles even more hustling and busier. As a result, the two factors of time-saving and convenience will be given top priorities. Therefore, RTD coffee is becoming more and more widely accepted by Millennials and Gen Z, especially the 18-39 age group.
In addition, customers are gradually showing avoidance of carbonated drinks, and energy drinks and switching to healthier options. This will directly affect RTD coffee products soon.
According to Fortune Business Insight’s (2020) RTD coffee market research report, the global market size was valued at USD 22.44 billion in 2019 and is projected to reach USD 42.36 billion by 2027. This positive data, therefore, shows the sales potential of this type of beverage in the future.
Asia Pacific RTD Coffee Market Size, 2016-2027 (USD Billion)
Although the forecast numbers for RTD coffee are attractive, in the end, its development still depends heavily on key factors. These mentioned by the report include coffee quality, accessibility, speed of service, sustainability, transparency, traceability, variety of flavors, and choice.
What is private label ready-to-drink coffee?
The RTD coffee market is getting more and more exciting with the appearance of big players in the beverage industry, such as Pepsico, The Coca-Cola Company, Nestle, Suntory Beverage & Food, and Ahashi Group Holdings Ltd,… And perhaps it is not difficult to accidentally come across RTD coffee products from these brands on convenience store shelves.
So, for SMEs before trying to put their finished RTD coffee products on the shelf next to the products of the big guys, they need to solve some of the following issues in the production step:
- No idea about the RTD coffee product concept
- Troubles with regulatory problems and required food safety certification
- No economies of scale, leading to high costs
- Lack of experience, raw material supply, and human resources
- Limit capital for investment in factories and equipment and facilities
That is why the process of providing private label solutions has formed this definition. More specifically, a private label RTD coffee product is:
- An RTD coffee product is selected from the list of coffee drinks available from these manufacturers. Then all you need to do is put your brand name on it.
- Or an RTD coffee product that you already have a brief idea or a preliminary concept of the desired coffee product in terms of recipe, taste, or color, … and give it to these manufacturers. Then they will turn your ideas into reality.
How to choose a private label ready-to-drink coffee manufacturer
Finding a good RTD coffee manufacturer means that your final product will almost perfectly meet all of your expectations. After that, all you need to do is focus on developing your sales and marketing strategy. As a result, you can confidently enter this profitable market.
Here are a few criteria you need to keep in mind when looking for an RTD coffee manufacturer:
Operation experience and testimony
Operating experience is one of the most important criteria to evaluate the quality of private label beverage manufacturers. The longer the experience, the higher the level of perfection in providing a comprehensive service. Because the procedures are streamlined to the maximum, the production process and logistics are carried out quickly and smoothly. Moreover, the accumulated long-term experience will help these manufacturers to expand their cooperative customer base. Besides, this also builds good relationships with many raw material suppliers as well as competent authorities.
As a prerequisite, however, long-term production experience is only a necessary condition. The good testimonial from old customers is the remaining sufficient condition. It will serve as a solid basis to determine the credibility of the manufacturer.
Facilities and equipment
A complex of large-capacity factories and modern production lines is a good signal. It will ensure that your products are processed under the best technical conditions. This will greatly affect the quality of your final product. Furthermore, you can also benefit from the economic advantages of mass production. Lower production cost leads to lower product cost. The price of the launching product will be at a level that fits the consumer’s budget. This will also provide a competitive advantage in using a low-price strategy to capture market share in the beverage industry.
License and certificates
HACCP, ISO 22000, FSC, FDA, and BRC, … are the prestigious certifications evaluated and issued by leading international organizations in the world for qualified individuals and companies. It is related to meeting the standards of food safety and hygiene or ensuring excellent production management quality,… Moreover, strict export conditions help to bring products into specific markets such as the US, Europe, or Muslim countries. So you can put your trust in these private label manufacturers.
Top private label ready-to-drink coffee manufacturers
Even if you have a thorough grasp of the essential criteria listed above. It will cost you a lot of valuable time and resources to research and confirm a question. Who are the right manufacturers to cooperate with and entrust your brainchild?
Then there is a highly recommended list of reputable RTD coffee private label manufacturers for your reference:
Tan Do Beverage (Vietnam)
Tan Do Beverage is a global beverage manufacturer with 3 own brands including Tan Do, Tropi, and Denavis. Especially, as a leading private label beverage producer, Tan Do offers a one-stop-care beverage solution with ODM/OEM service for partners.
Tan Do has many outstanding advantages to become the top ideal manufacturer of private label RTD drinks. For your information, Tan Do Beverage operates a large-capacity production factory and state-of-the-art facilities and possesses an abundant source of raw materials. Hence, customers are offered a competitive production cost. In addition, Tan Do also gained international standard certifications with FDA, FSSC, ISO, HACCP, Halal Jakim,…
Tan Do has exported thousands of its products to 6 continents with more than 50 countries. Thanks to that, have earned the trust of partners around the globe for more than the last 25 years.
The private label product portfolio is extremely diverse from fruit-based drinks, milk drinks, energy drinks, and aloe vera drinks,… to RTD coffee drinks – one of the prominent products with many flavors available such as black, cappuccino, espresso, caramel, matcha, latte, vanilla, and mocha.
Source: Tan Do Beverage
Berner Food & Beverage (U.S)
With over 70 years of operating experience, modern facilities, and a world-class team of in-house R&D experts, Berner has over 500 private label vendor partners and 1,100 private label SKUs created in only the last 5 years. As a result, Berner is today one of the industry leaders in the ready-to-drink (RTD) beverage sector.
Berner offers a broad range of RTD coffee and tea beverages, flavor profiles, and customizable solutions. Specifically, It includes coffee, energy drink, tea, functional beverage, and innovation.
Source: Berner Food & Beverage
Lassonde Pappas (U.S)
Lassonde Pappas is the second largest private label beverage manufacturer in the U.S., according to a study by a xometry company – Thomas as North America’s number one industrial sourcing platform and marketing powerhouse.
This manufacturer owns state-of-the-art facilities, quality customer service, a dedicated R&D team, and many prestigious awards such as StoreBrands Editors’ Pick for Best RTD Beverages (2017).
Lassonde Pappas offers organic, natural, conventional shelf stable juices, enhanced waters, and isotonic, cranberry sauces,… in the private label portfolio. Notably, ready-to-drink (RTD) teas or coffee is a new product segment.
Source: Lassonde Pappas
Javo Beverage (U.S)
Javo has over 20 years of experience along with proprietary technology and product development process. This sets Javo apart from the rest of the beverage industry.
As an extraction company, Javo provides private-label product solutions for global customers. Its products are fresh, organic, clean-labeled coffee and tea as well as botanical extracts. They are all certified by Rainforest Alliance, Fair Trade, and Kosher.
How about Javo’s extracts as coffee? It ranges from cold brew, cold coffee, hot coffee, and hand mix coffee, to private label (bag-in-a-box, hand mix, ready-to-drink).
Source: Javo Beverage
So we have come to the end of the article Private Label Ready-to-Drink Coffee – All You Should Know. Hope that it will help you have a comprehensive overview of private label ready-to-drink coffee. And then, be ready to enter the market with this potential beverage.
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