Why Nespresso Has Just Launched Ready-to-Drink Coffee in the U.S.

Nespresso is entering the ready-to-drink (RTD) market in the US. Their Master Origins Colombia range is a limited-edition coffee sweetened with honey sourced from the same Colombian farms that grow its beans.

This launch aligns with growing consumer demand for on-the-go coffee, which has driven the RTD sector’s rapid expansion. According to Statista, ‘The Ready-to-Drink (RTD) Coffee market in the world is projected to grow by 3.33% (2024-2029) resulting in a market volume of US$42.61bn in 2029.’

However, Nespresso’s late entry into the RTD market aims to position the brand alongside premium alternatives, especially as companies like Starbucks and Dunkin’ dominate the space. PepsiCo has maintained a longstanding collaboration with Starbucks to distribute the brand’s ready-to-drink (RTD) coffee products across the US.

In recent years, Nestlé has also partnered with Starbucks to expand the distribution of RTD coffee into new markets, including Southeast Asia, Oceania, and Latin America, broadening the global reach of Starbucks’ popular beverages. Whilst in the UK, the Coca-Cola owned, Costa Coffee brand is also enjoying rapid growth.

Back in January 2024, Coca-Cola (backed up with stats from Nielsen) reported that Costa Coffee is the fastest growing major brand within RTD chilled Coffee in independent convenience. The growth suggests figures are up 46% in value vs 12.5% for the total segment. This brand growth is contributing more incremental value sales than any other major brand within independent convenience. The Costa Coffee RTD range is now worth £24m across total GB.

So, it seems like a no-brainer for Nespresso; Start the day with a Nespresso pod, grab a RTD coffee at lunch. Alfonso Gonzalez Loeschen, CEO of Nespresso North America, stated, “As on-the-go coffee demand continues to grow in the U.S., we saw the opportunity to reimagine how Nespresso can elevate coffee moments for today’s consumer.”

THE GOODS' brand and beauty editor, Kelcie wrote about A2 milk and the premium RTD coffee boom last month. It's as if Nespresso are following the challenger here.

Specialty Coffee and RTD Coffee

As highlighted by Perfect Daily Grind, specialty roasters have increasingly embraced the RTD coffee market, innovating with unique flavours and experiences. Brands like Rocket Bean Roastery and Nomad Coffee have shown how critical it is to balance convenience, quality, and price. Who’d have thought you’d one day be able to get Geisha bean coffee in a can.

These players focus on differentiation by leveraging new cold brew technologies, like the Hardtank, that improve flavour profiles and extraction efficiency.

Nespresso’s RTD launch enters a space where specialty roasters have set the standard for innovation, focusing on flavour, functionality, and consumer experience. The challenge for Nespresso lies in maintaining its premium positioning while competing in a market driven by both convenience and authenticity.

Nespresso and Sustainability

Nespresso’s sustainability practices have long been debated. While the brand has introduced recycling programs and sources coffee beans through the AAA Sustainable Quality Program, critics have pointed out that the use of aluminium pods often requires significant consumer participation for recycling to be effective. The company has made strides in regenerative agriculture, sourcing honey for this RTD from Colombian coffee farms that practise sustainable farming techniques.

Despite these efforts, challenges remain in encouraging higher consumer engagement with recycling programs. The aluminium cans used for the Master Origins Colombia RTD are a step toward more sustainable packaging, though the brand’s environmental track record remains complex.

Positioning for the Future

Nespresso’s foray into RTD coffee is part of a broader effort to diversify its offerings and stay relevant in a post-pandemic market. As consumer habits shift—fueled by demand for premium on-the-go products—the Master Origins Colombia RTD beverage serves as a bridge between Nespresso’s in-home staples and the evolving landscape of out-of-home coffee consumption.

The product will be available in select U.S. Nespresso Boutiques and online starting in early October. As the RTD sector continues to grow, with specialty coffee roasters making notable strides, Nespresso’s ability to balance its ‘premium’ image with sustainability will be critical in capturing a larger share of this rapidly evolving market.