As we mentioned in our April “Outlook Report,” the global ready-to-drink (RTD) beverage market is expected to surpass $800 billion this year, reaching $1.2 trillion in 2032, according to Fortune Business Insights.

This month, we will explore the latest trends, areas for growth, and look at flavor trends.

First, let’s define the RTD market. The RTD non-alcoholic beverage market includes several categories: coffee, tea, dairy drinks, nutrition drinks, juices, enhanced waters, and sports nutrition drinks. According to Glanbia Nutritionals, RTD beverage users want to buy these beverages with a purpose. Popular ingredients include vitamins, minerals, probiotics, prebiotic fibers, omega-3 fatty acids, antioxidants, natural energy boosters and botanicals.

“The RTD beverage space is booming, and at IFPC, we’re seeing strong demand for functional ingredients that offer more than hydration. Consumers want protein fortification, sugar reduction, and digestive support,” says Jennifer Adams, director of ingredient technology and applications at St. Louis-based IFPC. “Brands are looking for ways to stand out, and that’s where we come in.”

RTD dairy beverages are growing across multiple consumer needs, from post-workout recovery to on-the-go breakfast solutions, adds Allison Leibovich, marketing manager for dairy and dairy alternatives, Wayzata, Minn.-based Cargill.

“Protein and low sugar remain foundational, but we’re now seeing the layering of additional benefits, whether that’s fiber for GLP-1 support or ashwaganda for mood support,” Leibovich says.

“RTD coffee and tea brands are responding to needs for cold brew processing, sourcing transparency, energy, sugar reduction, cleaner labels, flavor blends, and formats/flavors that fit with generations and dayparts,” notes Lisa Jackson, director of marketing, Kalamazoo, Mich.-based FlavorSum.

“In social discussions, RTD coffee drinkers highlight the beverages’ convenience, mood-boosting, and premium taste. RTD tea gets kudos for delivering a refreshing, premium, and relaxing experience,” Jackson states. “Nutritional drink innovation increased by almost 60% in the last year as a solution for quick, easy, lower- calorie energy. People noted the segments’ rich, indulgent, satisfying taste with support for muscle function, hydration and metabolism.”

Enhanced RTD water innovation increased 22% in the last year, continues Blake Lyon, FlavorSum’s applications manager. “Brands are adding ingredients like vitamins, electrolytes, ashwagandha, l-theanine, biotin, and zinc to support shopper’s health and wellness goals (and transform flavored water into a functional beverage),” Lyon reveals.

Other RTD trends, such as plant-based protein beverages, low-sugar lattes, electrolyte-boosted waters, and herb/botanical features are gaining traction, Adams reveals. “We’re also seeing a rise in mood and energy drinks that use ingredients like magnesium, adaptogens, or green tea extract. The category is growing consistently, and IFPC is helping formulators respond to that demand with clean-label, shelf-stable ingredient systems that meet both sensory and processing needs.”

Functional infusions are gaining ground, Leibovich adds. “We’ve seen launches featuring ashwagandha for stress, turmeric for inflammation and even RTD milk-based mocktails. Through it all, brands are balancing decadent flavors and added benefits, while keeping sugar levels in check.”

Jackson does stress that not every RTD category is exhibiting strong growth. “Slower trends in RTD juice drinks reflect concerns about price, calories and sugar content. [But] despite less shopper consumption, brands continue to innovate, with new product launches up 30% in the 52 weeks ending March 2025,” Jackson notes, adding this reflects its analysis of data for North America from Mintel’s global new products database.

“Functional benefits like vitamins, hydration, immune support and digestive support are frequent callouts as juice drinks expand to new bases like coconut water, watermelon, cactus, and aloe vera. Some new products also highlight reduced or no added sugar,” Lyon suggests.

Flavors galore

Depending on the type of RTD beverage, it stands to reason that flavors are a main component that drives consumer buying behavior. Pistachio — thanks to the Dubai Chocolate social media craze — and brown butter are two of today’s major flavor trends. Yet, the RTD category reaches deeper for flavor inspiration.

“Because the RTD market involves diverse formats (e.g., dairy-based, refreshing), flavor trends vary significantly,” Jackson suggests. “Pistachio and brown butter flavors currently trending in dairy-based segments like ice cream, creamers and whipped toppings are emerging in the dairy-based nutritional drink category. Although both are trending in discussions about traditional coffee, we haven’t seen the leap to RTD coffees yet.”

Of course, chocolate, vanilla and strawberry remain flavor staples, but brands are “leaning into indulgence with dessert-inspired limited-time offers, seasonal varieties and collaborations with nostalgic brands,” Leibovich adds. “Dairy’s mild base provides a flexible canvas for innovation. With the right base and formulation know-how, manufacturers can easily top-note seasonal flavors to keep consumers coming back.”

One of the main trends IFPC is seeing is a rise in botanical flavors. “Our IT&A (Ingredient Technology and Applications) team recently developed Roseberry and Elderberry flavor systems for dairy beverages to meet this demand,” Adams relays. “We stay ahead of these flavor trends by launching new milk flavors quarterly and offering samples to help our customers innovate faster.”

Now that pistachio and brown butter have entered the lexicon as “trendy flavors,” Dairy Foods asked FlavorSum’s Jackson to sum up what the next hot flavors could be.

“Buzzy flavors in traditional coffee lean into indulgence — like tiramisu and caramel apple — and could cross over into a RTD format. Coffee styles beyond espresso and cold brew are also opportunities for RTDs, like Vietnamese or New Orleans coffee,” Jackson concludes. “In RTD tea, people are increasingly discussing grapefruit, apple and chocolate flavors. Trending flavors and formats in juices include ginger or turmeric shots, refreshers that add functional ingredients, and global flavors like lychee or yuzu.” DF