The ready-to-drink (RTD) market is growing rapidly and is becoming one of the main drivers of innovation in the dairy industry. According to Dairy Reporter, it is ready-to-drink beverages that are helping brands expand into new categories — from cold brew coffee to high-protein shakes and functional health products.
Analysts predict that by the mid-2030s, the global RTD drinks market could approach the $1.5 trillion mark, which is approximately 67% higher than in 2026. Growth in the category is being driven by trends towards healthy eating, demand for convenient formats and consumer interest in functional products.
In the dairy sector, RTD is becoming a platform for the development of high-protein shakes, drinks designed to support gut health, and the cold coffee segment. Protein remains one of the market’s key drivers. Danone, for example, has made it a central part of its strategy, actively expanding its range of functional ready-to-drink products.
“RTD shakes allow the brand to show up in on-the-go occasions throughout the day, in moments where refrigerated yogurt doesn’t naturally play,” said Rafael Acevedo, Danone North America’s president of the Yogurt Business Unit. “As a result, we’re increasingly reaching consumers who may not be frequent yogurt buyers but are active participants in the broader protein category.”
Danone is also strengthening its presence in the meal replacement segment by expanding the Alpro Meal To Go brand in Europe and investing in Huel — one of the largest players in the ready-to-eat food market.
Demand for protein is also driving the growth of ultra-filtered milk. According to Circana, sales in this category in the US rose by almost 15% in value terms and by 5.5% in volume terms. The RTD format was a key driver of this growth, particularly the high-protein Core Power shakes from the fairlife brand.
RTD has also helped to scale up the drinkable yoghurt and kefir categories. In recent years, kefir has evolved from a niche ethnic product into a popular functional drink for health-conscious consumers. The rapid growth in sales of the Biotiful and Lifeway Foods brands only confirms this trend. Significantly, Biotiful was subsequently acquired by dairy giant Muller, whilst Lifeway Foods rejected two takeover bids from Danone.
Cold coffee has emerged as a key driver of growth in the RTD category. The American company Chobani has acquired the coffee roaster La Colombe to strengthen its position in the RTD coffee segment and expand its presence in related beverage categories.
Cold brew coffee is also a key part of the Swiss Emmi Group’s strategy. Its Emmi Caffè Latte brand is expanding rapidly in the Swiss, Western European, and North American markets.
“Across markets, RTD coffee continues to benefit from strong demand for convenience, on-the-go energy, and premium coffee experiences, although the category is evolving at different speeds depending on market maturity,” said Georgia Lightbody, Senior Brand Manager at Emmi Caffé Latte.
At the same time, the role of dairy ingredients in ready-to-drink (RTD) product development is growing. Manufacturers are paying particular attention to whey proteins and clear whey, a clear whey product that is widely used in high-protein drinks. Demand for WPC80 and WPI continues to rise, encouraging processors to increase cheese production, where whey is a by-product.
The Dairy Reporter notes that RTD is no longer merely a convenient format for consumption. For dairy brands, it is becoming a key tool for entering new categories, creating added value, and identifying new areas for growth.
Source: Dairy Reporter
