Cold Brew Coffee Market By Product Type (Concentrated Cold Brew, Coffee Beans or Grounds for Cold Brew), Flavor Varieties (Original/Classic, Flavored), Distribution Channel (Retail Stores, Online Retailers, Foodservice Outlets), & Region for 2024-2031

Cold Brew Coffee Market Valuation – 2024-2031

Demand for cold brew coffee has grown dramatically in recent years owing to shifting consumer preferences and increased knowledge of the beverage’s distinct qualities. Unlike regular iced coffee, cold brew is brewed for a longer amount of time at a lower temperature resulting in a smoother, less acidic flavor by enabling the market to surpass a revenue of USD 1.24 Billion valued in 2024 and reach a valuation of around USD 6.49 Billion by 2031.

The health-conscious trend is driving up demand for cold brew coffee. Consumers are increasingly looking for beverages with lower sugar and calorie content, and cold brew fits this trend because of its naturally smooth flavor which often requires less sugar or milk than hot coffee. Furthermore, the cold brew procedure removes more caffeine making it desirable to people seeking a more intense energy boost without the bitterness by enabling the market to grow at a CAGR of 25.40 % from 2024 to 2031. 

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Cold Brew Coffee Market: Definition/ Overview

Cold brew coffee is brewed by steeping coarsely ground coffee beans in cold water for an extended period, usually 12 to 24 hours. Unlike standard brewing methods which utilize hot water to extract flavors fast, cold brew uses time to gradually extract the coffee’s natural oils, sugars, and flavors, resulting in a smoother, less acidic taste. Cold water reduces the production of bitter chemicals, which is why cold brew is popular among individuals who find hot coffee too harsh or acidic.

They have grown in popularity due to their unique brewing procedure and smoother flavor profile resulting in a wide range of uses across the beverage sector. One of the most common applications is in ready-to-drink (RTD) beverages in which cold brew coffee is packed for convenience and enjoyed on the move. Its lower acidity and naturally sweeter taste appeal to a wide range of consumers including coffee purists and casual users.

The cold brew coffee market is predicted to expand rapidly driven by rising consumer demand for healthier and more convenient alternatives to regular coffee. With the trend toward health-conscious consumption, cold brew’s lower acidity, and perceived health benefits are projected to attract more customers, particularly millennials and Gen Z who value both flavor and well-being.

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Will the Increasing Awareness of Coffee Drive the Cold Brew Coffee Market?

The growing popularity of coffee is a primary driver for the cold brew coffee business. As consumers learn more about coffee varietals, brewing methods, and health benefits, they are drawn to cold brew for its distinct flavor profile and perceived advantages. According to the National Coffee Association’s 2022 National Coffee Data Trends report, 66% of Americans now consume coffee every day, more than any other beverage including tap water. This greater knowledge has led to increased consumption, with 20% of coffee drinkers reporting having had cold brew in the last week, up from 7% in 2016.

Market research further supports the growing popularity of cold brew. Factors contributing to this expansion include an increase in the number of coffee shops and cafes, increased disposable incomes and shifting customer preferences toward premium and specialty coffee products. Furthermore, the US Department of Agriculture forecasts that coffee consumption in the United States has climbed by 5% since 2015 reaching 3.3 cups per person per day in 2022. With cold brew being seen as a premium, less acidic alternative to typical hot coffee, it is well-positioned to benefit from the overall increase in coffee consumption and awareness.

Will the Stringent Regulations Hamper the Cold Brew Coffee Market?

Stringent laws, particularly those governing food safety, labeling, and manufacturing requirements may provide hurdles to the cold brew coffee sector. Cold brew coffee requires a longer brewing time at lower temperatures, increasing the danger of microbiological contamination from germs like Listeria and Salmonella. Regulatory authorities like the United States Food and Drug Administration (FDA) and the European Food Safety Authority (EFSA) have established tight rules to ensure the safety of cold brew products.

Labeling and marketing laws can also be challenging for cold brew coffee manufacturers. Regulatory agencies require label openness including clear information on caffeine content, ingredients, and health warnings. Some countries have implemented restrictions restricting caffeine levels in beverages which may limit the manufacture of highly caffeinated cold brews. For example, the European Union enforces caffeine labeling requirements requiring warning labels on items having more than 150 mg of caffeine per liter.

Category-Wise Acumens

Will Increasing Demand for Healthier and Clean-Label Beverages Drive Growth in the Product Type Segment?

Ready-to-drink (RTD) cold brew in bottles or cans is the most popular product type. Convenience is driving its appeal as customers seek on-the-go beverage options that fit their fast-paced lifestyles. RTD cold brew provides a quick, hassle-free coffee experience with no need for preparation making it a popular choice among busy professionals, travelers, and commuters. As major coffee brands and independent labels extend their RTD cold brew product lines, the segment has gained widespread distribution in supermarkets, cafes, and convenience stores contributing to its domination.

The growing desire for healthy, clean-label beverages fuels the expansion of the RTD cold brew category. Consumers are shifting away from sugary sodas and adrenaline drinks and toward more natural, low-calorie options such as cold brew coffee. RTD cold brew frequently contains no added sugars or artificial additives which aligns with health-conscious preferences. The market also benefits from the advent of e-commerce platforms which make it easy for customers to buy cold brew items online.

Will the Accessibility and Convenience Drive the Distribution Channel Segment?

The retail outlets sector is the dominant distribution channel in the cold brew coffee market owing to the accessibility and convenience it provides to a wide range of consumers. Cold brew coffee is widely available in supermarkets, convenience stores, and specialty coffee shops making it accessible to both regular and impulse purchasers.  Furthermore, large retail chains and supermarkets frequently provide a diverse selection of cold brew brands and flavors catering to a wide range of tastes.

While internet shops and food service outlets are gaining popularity, retail stores continue to dominate because of their ability to provide rapid access to products without the need for delivery wait times. Furthermore, the in-store shopping experience allows customers to discover new cold brew companies through product displays and promotions which leads to spontaneous purchases. Retailers frequently cooperate with cold brew brands for exclusive deals offering discounts and promotions that appeal to budget-conscious shoppers.

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Country/Region-wise Acumens

Will the Increasing Focus of Customers on Healthy Diet Options Drive the Market in the Asia Pacific Region?

The Asia Pacific cold brew coffee market is dominant due to growing consumer preference for healthier beverage options and a thriving cafe culture in the area. This trend is especially prevalent in cities and among younger groups who are looking for alternatives to typical sugary and high-calorie beverages. According to a World Health Organization report from 2023, 73% of adults in the Asia Pacific region were concerned about their daily sugar intake, with 62% actively seeking low-sugar or sugar-free beverages.

The Asia Pacific Food Industry Association stated that cold brew coffee has around 67% less acidity than ordinary hot brewed coffee making it appealing to health-conscious consumers. Furthermore, the café culture development in China, Japan, and South Korea has had a substantial impact on market expansion. This expansion has introduced a larger audience to premium coffee experiences such as cold brew. According to an Asian Beverage Alliance poll, 41% of urban millennials in the region prefer cold brew coffee to standard iced coffee claiming better taste and perceived health benefits as the key reasons.

Will the Growing Spending Power of Millennials & their Coffee Preferences Drive the Market in the North American Region?

The North American cold brew coffee market is experiencing rapid growth primarily driven by the increasing spending power and evolving coffee preferences of millennials. This demographic is the fastest-growing consumer segment for cold brew coffee largely due to their attraction to innovative, premium, and convenient beverage options that align with their lifestyle and taste preferences. According to the U.S. Bureau of Labor Statistics, millennials now make up the largest segment of the workforce, accounting for 35% of all workers in 2022. 2016.

According to the United States Census Bureau, millennial households’ median income has climbed by 13% in the last five years outperforming other age groups and giving them more discretionary cash to spend on luxury coffee products. Furthermore, the Food Marketing Institute discovered that 65% of millennials value health and well-being in their food and beverage choices which is consistent with cold brew coffee’s perceived health advantages.

Competitive Landscape

The Cold Brew Coffee Market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support. The organizations focus on innovating their product line to serve the vast population in diverse regions.

Some of the prominent players operating in the cold brew coffee market include:

• Starbucks Coffee Company
• Nestlé
• Califia Farms, LLC
• JAB Holding Company
• HighBrewCoffee
• Kohana Coffee
• La Colombe Coffee Roasters.
• RISE Brewing Co.
• Heartland Food Products Group.
• Sleepy Owl Coffee

Latest Developments

• In May 2024, Starbucks Coffee Company will launch NEW Starbucks Iced Coffee blends as well as NEW Starbucks Cold Brew Concentrates – Dark Chocolate Hazelnut and Sweetened Black, the first at-home mix that allows customers to enjoy Starbucks café-quality iced coffee at home.
• In May 2024, Nescafé released Nescafé Espresso Concentrate with flavors including sweet vanilla and Espresso Black. It can be served with milk, water, or juice.

Report Scope

Cold Brew Coffee Market, By Category

Product Type:

• All set to drink (RTD) Cold Brew Coffee in Bottles or Cans
• Concentrated Cold Brew
• Coffee Beans or Grounds for Cold Brew

Flavor Varieties:

• Original/Classic
• Flavored
• Single-Origin

Distribution Channel:

• Retail Stores
• Online Retailers
• Foodservice Outlets

Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

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