The Cold Brew Coffee Market size was estimated at USD 1.2 billion in 2023 and is projected to reach USD 5 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 20.00% during the forecast period (2024-2030).

Cold Brew Coffee Market

Market Summary

The cold brew coffee market represents a rapidly expanding segment within the broader consumer goods industry, specifically in the beverage sector. This market is characterized by the sale of coffee that is brewed with cold water over an extended period, typically 12 to 24 hours, resulting in a smoother, less acidic beverage compared to traditional hot-brewed coffee. The primary appeal lies in its unique flavor profile and convenience, catering to a modern consumer base that values premium, ready-to-drink options. The market encompasses a diverse range of products, including concentrates, ready-to-drink bottles and cans, and even DIY kits for home preparation. Distribution channels are vast, spanning supermarkets, convenience stores, specialty coffee shops, and online e-commerce platforms. The evolution of this market is heavily influenced by shifting consumer preferences towards healthier, artisanal, and ethically sourced products. Major corporations and small boutique brands alike are competing for market share, driving innovation in flavors, packaging, and marketing strategies. The product's versatility allows it to be consumed black, with milk, or as a base for other coffee beverages, further broadening its appeal. This market is not just a trend but is establishing itself as a permanent fixture in the global coffee culture.

Key Highlights

The cold brew coffee market is distinguished by several key factors that underscore its significant growth and potential. A paramount highlight is the product's strong association with health and wellness trends, as its cold brewing process naturally reduces acidity, making it a preferable choice for consumers with sensitive stomachs and those seeking a smoother coffee experience. The market has successfully attracted a younger demographic, particularly millennials and Gen Z, who are drawn to its premium positioning, artisanal qualities, and Instagram-worthy packaging. Another critical highlight is the extensive product innovation occurring within the space, with companies introducing nitro cold brew for a creamy texture, and infusing flavors like vanilla, chocolate, and seasonal specialties to diversify offerings. The strategic expansion of distribution into non-traditional channels such as gyms, offices, and subscription services has been instrumental in increasing product accessibility and trial. Furthermore, the market benefits from the powerful brand-building efforts of key players like Starbucks, PepsiCo, and Nestl?, whose extensive marketing budgets and established distribution networks have been pivotal in mainstreaming cold brew coffee and educating a wider audience about its benefits and consumption occasions.

Drivers, Opportunities & Restraints

The growth of the cold brew coffee market is propelled by a confluence of powerful drivers. A primary driver is the escalating consumer demand for convenient, on-the-go beverage options that do not compromise on quality or taste. The health and wellness movement is another significant driver, with consumers actively seeking out low-acidity, natural, and often organic coffee alternatives. The premiumization trend within the food and beverage industry allows companies to command higher price points for cold brew due to its perceived artisanal value and superior flavor profile. Opportunities for market expansion are abundant, particularly in emerging economies where coffee culture is still developing and there is immense potential to introduce cold brew as a novel, premium product. The development of new packaging solutions, such as sustainable and portable formats, presents a substantial opportunity for brands to differentiate themselves. However, the market also faces notable restraints. The higher price point of cold brew compared to regular iced coffee or hot coffee can be a barrier to mass adoption for some consumer segments. The requirement for specialized equipment and a longer brewing time for production can increase operational costs and complicate supply chain logistics for manufacturers, potentially limiting scalability and profitability for smaller players.

Concentration Insights

The competitive landscape of the cold brew coffee market exhibits a mix of high concentration among a few global giants and a fragmented base of numerous small-scale, artisanal producers. The market is led by multinational beverage corporations such as Starbucks Corporation, Nestl? S.A., and PepsiCo, Inc., which have leveraged their vast financial resources, extensive distribution networks, and strong brand equity to capture significant market share. These companies often acquire successful smaller brands to quickly gain a foothold and innovate within the segment. Alongside these titans, there exists a vibrant ecosystem of independent and specialty coffee roasters, including brands like La Colombe Coffee Roasters, Stumptown Coffee Roasters, and Wandering Bear Coffee. These smaller players compete on factors such as hyper-local sourcing, unique flavor profiles, organic certifications, and a direct-to-consumer business model that fosters a strong community connection. This dual structure creates a dynamic environment where large companies drive mass-market penetration and awareness, while smaller innovators push the boundaries of product quality and sustainability, continually influencing trends that the entire market eventually adopts.

Type Insights

The cold brew coffee market is segmented by type, primarily into concentrates and ready-to-drink (RTD) products, each catering to distinct consumer needs and occasions. Concentrates are a popular format where the coffee is brewed to a highly potent form and is designed to be diluted with water or milk before consumption. This type appeals particularly to at-home consumers and businesses like cafes and restaurants seeking an efficient, cost-effective base for crafting various coffee beverages. It offers customization and a longer shelf life, making it a practical choice for bulk purchasing. On the other hand, the ready-to-drink segment has experienced explosive growth. This includes bottled and canned cold brew coffee that is pre-mixed and ready for immediate consumption. The RTD format is the epitome of convenience, perfectly aligned with busy urban lifestyles and the demand for grab-and-go refreshment. It is the dominant type in retail channels like supermarkets and convenience stores. Within RTD, further innovation is seen with the introduction of nitro cold brew, which is infused with nitrogen gas to create a smooth, creamy texture akin to a stout beer, and a variety of flavored and milk-added options that cater to a wider palate.

Application Insights

In terms of application, cold brew coffee permeates various consumption environments, primarily segmented into at-home and out-of-home channels. The at-home application has gained tremendous traction, especially with the rise of e-commerce and subscription-based models. Consumers are purchasing concentrates, whole beans for grinding, and even DIY cold brew kits to prepare the beverage in their own kitchens. This trend was significantly accelerated by global lockdowns, which shifted consumption from cafes to homes and fostered a culture of coffee experimentation. Brands catering to this segment focus on providing easy-to-use products, educational content, and sustainable packaging. Conversely, the out-of-home application remains a critical and high-volume channel. This includes sales through coffee shops, restaurants, fast-casual chains, workplaces, universities, and convenience stores. Establishments like Starbucks and independent cafes use cold brew as a high-margin, signature menu item. The out-of-home segment is crucial for consumer trial and brand discovery, as many individuals are introduced to cold brew for the first time at a cafe or retail outlet. The growth in both applications indicates the product's versatility and its successful integration into diverse daily routines.

Regional Insights

The adoption and growth of the cold brew coffee market vary significantly across different global regions, influenced by local coffee culture, consumer preferences, and economic factors. North America, particularly the United States, is the undisputed leader and the most mature market for cold brew coffee. It is considered the birthplace of the modern cold brew trend, with a well-established infrastructure for production, distribution, and marketing. The region boasts high consumer awareness and a strong culture of coffee consumption, making it the largest and most competitive market. Europe represents another significant market, with countries like the United Kingdom, Germany, and the Nordic nations showing robust growth. European consumers, known for their appreciation of high-quality coffee, have readily embraced cold brew, especially in its artisanal and sustainable forms. The Asia-Pacific region is identified as the fastest-growing market, driven by rising disposable incomes, urbanization, and the rapid expansion of western-style caf? chains in countries like China, Japan, and South Korea. While other regions like Latin America and the Middle East and Africa have smaller market shares, they present substantial future growth opportunities as global brands begin to target these emerging markets.

Company Insights

The cold brew coffee market features a diverse array of companies, from global beverage conglomerates to nimble specialty startups. Leading the market are industry behemoths such as Starbucks Corporation, which has successfully integrated cold brew into its permanent menu and markets it aggressively worldwide. Nestl? S.A., through its strategic acquisition of brands like Chameleon Cold-Brew, has fortified its position in the premium ready-to-drink segment. PepsiCo, Inc. has also made a significant impact through its partnership with Starbucks for bottled beverages and its ownership of brands like Naked Juice, which has ventured into cold brew offerings. Beyond these giants, a host of influential specialty companies drive innovation and cater to niche audiences. La Colombe Coffee Roasters is renowned for its draft lattes and premium canned products. Stumptown Coffee Roasters, owned by Peet's Coffee, is often credited with helping to popularize nitro cold brew. Other notable players include Califia Farms, known for its plant-based beverage additions, and High Brew Coffee, which focuses on double-streight canned cold brew. These companies compete on factors including bean sourcing, organic certification, flavor innovation, unique packaging, and brand storytelling.

Recent Developments

The cold brew coffee market is dynamic, with recent developments highlighting a focus on sustainability, product diversification, and strategic corporate movements. A prominent trend is the industry-wide push towards environmentally friendly packaging. Numerous brands are transitioning from plastic to recyclable aluminum cans, using post-consumer recycled materials, and developing compostable packaging solutions to appeal to eco-conscious consumers. In terms of product innovation, there has been a surge in the development of functional cold brews, which are infused with added vitamins, minerals, adaptogens, and nootropics like L-Theanine to enhance focus and energy without jitters. The landscape of mergers and acquisitions remains active, with large companies continuing to scout for and acquire successful independent cold brew brands to rapidly gain market share and product expertise. Furthermore, flavor exploration continues to be a key area of focus, with limited-edition seasonal flavors and collaborations with other food and beverage brands creating buzz and driving trial. The expansion of distribution into non-traditional venues such as fitness centers, hotels, and airline menus also marks a significant recent development, broadening the occasions for cold brew consumption.

Report Segmentation

This comprehensive market research report on the cold brew coffee market provides a detailed analysis segmented across multiple dimensions to offer a granular view of the industry landscape. The report is systematically divided to analyze the market by type, distinguishing between the key product forms such as concentrates and ready-to-drink variants, including further breakdowns for nitro and flavored options. The application segmentation delves into the primary consumption channels, namely at-home and out-of-home, examining the distinct drivers, consumer behaviors, and growth patterns within each. A crucial component of the report is the regional analysis, which offers an in-depth assessment of market performance and potential across key geographies including North America, Europe, Asia-Pacific, and the rest of the world. Furthermore, the report includes a dedicated company profiling section, which provides strategic insights into the market share, product portfolios, business strategies, and recent developments of the leading players as well as emerging innovative brands. This multi-faceted segmentation allows stakeholders to identify specific growth pockets, understand competitive dynamics, and make informed strategic decisions based on a thorough analysis of each market sub-segment.

FAQs

What is driving the growth of the cold brew coffee market?

The growth is primarily driven by increasing consumer demand for convenient, ready-to-drink beverages, a growing preference for less acidic coffee options, and the strong association of cold brew with premium and artisanal coffee culture.

Who are the key players in the cold brew coffee market?

The market features a mix of large corporations and specialty brands. Key players include Starbucks Corporation, Nestl? S.A., PepsiCo, Inc., as well as specialty roasters like La Colombe Coffee Roasters and Stumptown Coffee Roasters.

What are the different types of cold brew coffee available?

The main types are concentrates, which require dilution, and ready-to-drink (RTD) products, which are pre-mixed and packaged for immediate consumption. RTD includes straight black, nitro-infused, and flavored varieties with milk or sweeteners.

How is cold brew coffee different from iced coffee?

The fundamental difference lies in the brewing method. Cold brew is steeped in cold water for many hours, resulting in a smoother, less acidic taste. Iced coffee is typically hot-brewed coffee that has been cooled down and poured over ice, which can preserve more acidity.

Which regions show the most promise for cold brew coffee growth?

North America is the largest and most established market. However, the Asia-Pacific region is expected to exhibit the fastest growth due to rising disposable incomes, urbanization, and the growing influence of Western coffee culture.

What are the recent trends in the cold brew coffee market?

Recent trends include a strong focus on sustainable packaging, the introduction of functional cold brews with added health benefits, extensive flavor innovation, and expansion of distribution into non-traditional channels like gyms and offices.

Citius Research has developed a research report titled “Cold Brew Coffee Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” delivering key insights regarding business intelligence and providing concrete business strategies to clients in the form of a detailed syndicated report. The report details out the factors such as business environment, industry trend, growth opportunities, competition, pricing, global and regional market analysis, and other market related factors.

Details included in the report for the years 2024 through 2030

• Cold Brew Coffee Market Potential
• Segment-wise breakup
• Compounded annual growth rate (CAGR) for the next 6 years
• Key customers and their preferences
• Market share of major players and their competitive strength
• Existing competition in the market
• Price trend analysis
• Key trend analysis
• Market entry strategies
• Market opportunity insights

The report focuses on the drivers, restraints, opportunities, and challenges in the market based on various factors geographically. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report. The Cold Brew Coffee Market report is segmented on the basis of various market segments and their analysis, both in terms of value and volume, for each region for the period under consideration.

Cold Brew Coffee Market Segmentation

Regions Covered

• North America
• Latin America
• Europe
• MENA
• Asia Pacific
• Sub-Saharan Africa and
• Australasia

Cold Brew Coffee Market Analysis

The report covers below mentioned analysis, but is not limited to:

• Overview of Cold Brew Coffee Market
• Research Methodology
• Executive Summary
• Market Dynamics of Cold Brew Coffee Market
  • Driving Factors
  • Restraints
  • Opportunities
• Global Market Status and Forecast by Segment A
• Global Market Status and Forecast by Segment B
• Global Market Status and Forecast by Segment C
• Global Market Status and Forecast by Regions
• Upstream and Downstream Market Analysis of Cold Brew Coffee Market
• Cost and Gross Margin Analysis of Cold Brew Coffee Market
• Cold Brew Coffee Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030
  • Competition Landscape
  • Market Share of Major Players
• Key Recommendations

The “Cold Brew Coffee Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” report helps the clients to take business decisions and to understand strategies of major players in the industry. The report delivers the market driven results supported by a mix of primary and secondary research. The report provides the results triangulated through authentic sources and upon conducting thorough primary interviews with the industry experts. The report includes the results on the areas where the client can focus and create point of parity and develop a competitive edge, based on real-time data results.

Cold Brew Coffee Market Key Stakeholders

Below are the key stakeholders for the Cold Brew Coffee Market:

• Manufacturers
• Distributors/Traders/Wholesalers
• Material/Component Manufacturers
• Industry Associations
• Downstream vendors

Cold Brew Coffee Market Report Scope

COVID-19 Impact Analysis

Like most other markets, the outbreak of COVID-19 had an unfavorable impact on the Cold Brew Coffee Market worldwide. This report discusses in detail the disruptions experienced by the market, the impact on flow of raw materials, manufacturing operations, production trends, consumer demand and the projected future of this market post pandemic.

The report has helped our clients:

• To describe and forecast the Cold Brew Coffee Market size, on the basis of various segmentations and geography, in terms of value and volume
• To measure the changing needs of customers/industries
• To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
• To gain competitive intelligence and uncover new opportunities
• To analyse opportunities in the market for stakeholders by identifying high-growth segments in Cold Brew Coffee Market
• To strategically profile key players and provide details of the current competitive landscape
• To analyse strategic approaches adopted by players in the market, such as product launches and developments, acquisitions, collaborations, contracts, expansions, and partnerships

Report Customization

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