Cold-Brew Coffee Market Trends and Forecast
The future of the global cold-brew coffee market looks promising with opportunities in the company-owned outlet, supermarket & hypermarket, convenience store, and online markets. The global cold-brew coffee market is expected to grow with a CAGR of 9.2% from 2025 to 2031. The major drivers for this market are the rising preference for convenient & ready-to-drink beverages, the growing popularity of healthier coffee alternatives, and the increasing coffee culture.
• Lucintel forecasts that, within the preparation category, cold brewing is expected to witness the highest growth over the forecast period.
• Within the distribution category, supermarket & hypermarket is expected to witness the highest growth.
• In terms of region, North America is expected to witness the highest growth over the forecast period.
Emerging Trends in the Cold-Brew Coffee Market
The market for cold-brew coffee is seeing various emerging trends propelled by changing tastes among consumers, technological advancements, and convenience seeking. As customers keep looking towards healthier, convenient, and customized beverage choice, cold-brew coffee has been adapting in response to suit these demands. Trends such as the launch of new and innovative flavors, the growth of sustainability in packaging, and the increasing demand for plant-based alternatives are driving the future of this market. Following are five of the most important trends that are likely to characterize the cold-brew coffee market in the years to come.
• Flavor Innovation: The cold-brew coffee market is witnessing a flavor innovation boom, with companies testing out exotic and unusual flavors. From fruit infusions to cinnamon and cardamom, cold-brew flavors are on the rise. The innovative blends address changing consumer tastes for new and personalized coffee experiences. Flavor innovation is also a source of competitive advantage for brands, as it enables them to stand out in a saturated market. This trend also responds to growing demand for unique and premium beverage options, appealing to flavor-seeking coffee consumers.
• Health-Focused Choices: Consumers are more health-focused now, looking for drinks that can support their well-being objectives. To address these needs, cold-brew coffee manufacturers are making low-calorie, low-sugar, and dairy-free variants. The shift toward plant-based alternatives like almond milk and oat milk in cold-brewed coffee is symptomatic of the larger trend away from less healthy, less environmentally friendly options. As demand for functional drinks increases, some cold-brew companies are adding benefits like vitamins, electrolytes, and adaptogens, offering consumers more than a simple caffeine pick-me-up.
• Eco-Friendly Packaging: In light of concerns about the environment, sustainable packaging is gaining increased importance in cold-brew coffee. Most companies are moving toward green packaging materials, including glass bottles, recyclable cans, and biodegradable cartons. This is fueled by both consumer preference for sustainable goods and the regulatory push on brands to decrease their environmental footprint. Sustainable brands are not only enticing green consumers but are also becoming leaders in a market where green practices are key.
• Ready-to-Drink (RTD) Convenience: Ready-to-drink cold-brew coffee is a dominant category, with increasingly busy consumers demanding convenient, on-the-go beverages. The RTD cold-brew market is expanding at a fast pace, fueled by the need for convenient coffee experience without any compromise on quality. Companies are increasing their distribution channels to convenience stores, supermarkets, and e-commerce websites, making it convenient for consumers to get their preferred cold-brew beverages. This trend is likely to continue as convenience becomes the top priority in the busy, contemporary lifestyle.
• Premiumization and Specialty Offerings: With the growing popularity of cold-brew coffee, demand for premium products has also been on the rise. Customers are paying a premium for quality cold-brew coffee that is produced using ethically sourced beans, organic materials, and artisanal processes. Specialty coffee houses and boutique brands are pioneering the provision of specialty cold-brew offerings, including single-origin and small-batch cold brew. This trend is part of a larger movement within the coffee market toward high-end, artisanal products, where customers are looking for superior taste experiences and exclusivity.
These new trends are transforming the cold-brew coffee market by making consumer choice, sustainability, and personalization greater. The market is also more dynamic, as there is a move towards newer flavors, healthy options, and premium products. As consumer desires change, the brands will need to change as well in response to these trends to remain competitive and keep pace with increasing demands for varied and sustainable cold-brew coffee choices.
Recent Development in the Cold-Brew Coffee Market
Cold-brew coffee is seeing dramatic advancements with consumers driving demand for convenience, healthy choices, and different coffee experiences. These trends are changing the competitive landscape and altering consumer tastes. New flavor releases, product developments, and broadening distribution networks are among the top drivers behind the cold-brew segment growth. Five primary developments in this section are analyzed that are reshaping the cold-brew coffee market across geographies.
• Product Format Innovation: Product format innovation is one of the major trends in the cold-brew coffee industry. Companies are introducing cold-brew coffee in convenient formats such as cans, bottles, and concentrates. These formats suit various consumer requirements, ranging from single-serve cans for convenience to bigger bottles for brewing at home. Cold-brew concentrates are also catching on as people look for personalized choices to get their perfect cup of coffee. This format diversification is widening the market and attracting more and more consumers.
• Greater Plant-Based Cold Brew Availability: Due to the increase in demand for plant-based solutions, most cold-brew coffee companies are launching dairy-free and vegan-friendly options. These include the consumption of plant-based milks such as almond milk, oat milk, and coconut milk in cold-brews. The move to plant-based products is in line with increasing consumer demand for sustainable, cruelty-free, and health-oriented options. By having plant-based cold brews, companies are cashing in on a booming market of lactose-intolerant, vegan, or simply a more nuanced drinker consumer base.
• Premiumization Trend: The cold-brew coffee industry is moving towards premiumization, with more consumers being willing to pay extra for high-quality, artisanal products. Brands are emphasizing sourcing premium, single-origin coffee beans, organic products, and distinctive brewing methods to produce higher-quality cold-brew drinks. This trend is a part of a larger consumer aspiration for gourmet coffee experiences and a willingness to spend on premium, high-quality products. As the market continues to mature, brands are differentiating themselves by introducing unique, premium cold-brew products appealing to coffee aficionados and sophisticated consumers.
• Widening Distribution Channels: Another important trend is widening distribution channels for cold-brew coffee. Cold-brew drinks are becoming more widely available in supermarkets, convenience stores, and online channels, making them more convenient to access. Further, specialty stores and coffee shops are introducing cold-brew coffee as a regular menu option, boosting its availability in restaurants and cafes. Online shopping channels are on the rise with consumers increasingly buying cold-brew coffee online. This increase in distribution aids market penetration and extending into new consumer bases.
• Sustainability and Ethical Sourcing: Sustainability is becoming a key focus in the cold-brew coffee market, with brands adopting more ethical sourcing practices and environmentally friendly production methods. Consumers are increasingly demanding transparency in how their coffee is sourced and produced. Cold-brew brands are responding by prioritizing fair trade and organic certifications, as well as reducing their environmental impact through sustainable packaging. This focus on sustainability not only attracts eco-conscious consumers but also helps brands align with growing global trends toward ethical consumption.
The innovations in the cold-brew coffee market are leading to its fast growth and transformation. These changes and advancements are increasing cold-brew coffee's accessibility, variety, and sustainability. With the growing market, these innovations are increasing consumer choice, stimulating brand differentiation, and shaping the overall direction of the cold-brew coffee market.
Strategic Growth Opportunities in the Cold-Brew Coffee Market
The cold-brew coffee market provides various strategic growth opportunities across various applications, driven by shifting consumer preferences and increasing demand for more diversified coffee products. The versatility of cold-brew coffee allows it to be applied to various uses, ranging from ready-to-drink (RTD) drinks to coffee concentrates for home brewing. Here, we will discuss five important growth opportunities in the cold-brew coffee industry with their potential to chart the future of the sector and open up new consumer categories.
• Ready-to-Drink (RTD) Cold Brew Beverages: The RTD cold-brew segment is a major growth opportunity, led by growing consumer demand for convenience. RTD cold-brew drinks appeal to time-starved consumers looking for top-notch coffee without the requirement of brewing. As the market expands, increased brands are entering the RTD market, providing an array of flavors and formulations, including low-calorie, dairy-free, and organic offerings. RTD cold-brew drinks expanding in new retail outlets, including supermarkets, convenience stores, and the internet, further underlines this opportunity for growth.
• Home Brewing Cold Brew Concentrates: Cold-brew concentrates are finding favor with consumers seeking affordable and controllable alternatives for cold brewing coffee at home. With cold-brew concentrates, consumers can control the strength of their coffee and try new flavor options. This is a high-growth opportunity, especially in regions where home brewing is common. By providing cold-brew concentrates, companies can serve a new and expanding demographic of coffee consumers who want a more customized coffee experience.
• Plant-Based Cold Brew Options: With plant-based diets and lifestyles on the rise, cold-brew coffee companies have the potential to capitalize on this expanding market by providing dairy-free and vegan-friendly cold-brew products. Employing plant-based milks such as oat milk, almond milk, and coconut milk in cold-brew products attracts a broader segment of consumers, such as those with lactose intolerance, vegans, or consumers seeking healthier options. This increased demand for plant-based drinks is a primary growth opportunity in the cold-brew coffee market.
• Cold Brew as a Cocktail Base: Cold-brew coffee is being utilized more and more as a base for spirits, including coffee cocktails and spirits infused with cold brew. This movement is on the rise in the hospitality sector, especially among craft bars and restaurants, where bartenders are playing around with cold-brew coffee as a cocktail ingredient. The convenience of cold-brew coffee provides opportunities for the development of distinctive, flavored beverages that will attract consumers who want new and premium coffee experiences. This use provides expanding opportunities for both cold-brew manufacturers and the overall beverage market.
• Cold Brew Coffee Subscription Services: Subscription services are a new opportunity for expansion in the cold-brew coffee industry, providing consumers with the benefit of delivery of their preferred cold-brew drinks on a regular basis. Not only does this model satisfy the rising demand for convenience but also the possibility for brands to establish loyal consumers. Subscription products can offer cold-brew items ranging from ready-to-consume drinks and concentrates, fitting diverse consumer desires. As more commerce moves to online channels, subscription models should be a very significant sales opportunity.
The cold-brew coffee market has numerous strategic opportunities for growth through different applications ranging from ready-to-drink and subscription models. These opportunities provide brands with avenues to expand their product offerings and address changing consumers' needs. As the industry grows, the applications will determine the future direction of the cold-brew coffee market and influence its expansion to new markets.
Cold-Brew Coffee Market Driver and Challenges
The cold-brew coffee industry is driven by a number of drivers and challenges, from technological advancements to economic drivers. Technologically, advancements in brewing processes and production techniques are helping companies respond to consumer demand for quality, convenient cold-brew drinks. However, the industry has a number of challenges, such as the requirement for sustainable practices and competition from other coffee drinks. Recognizing these drivers and challenges is vital for companies to steer through the dynamic scenario of the cold-brew coffee market.
The factors responsible for driving the cold-brew coffee market include:
1. Health Consciousness: One of the key drivers of the cold-brew coffee market is increased consumer demand for health-conscious drinks. Cold brew coffee is not only viewed as a healthier alternative to standard hot coffee because it has lower acidity but is also less likely to cause stomach discomfort. Moreover, the growth of cold-brew cold-brew with low calories, no sugar, and no dairy is in tandem with the demand for wellness products. With health-conscious consumers becoming more prevalent, cold-brew coffee is expected to gain more market share of the coffee market.
2. Convenience and On-the-Go Consumption: With lifestyles getting busier, convenience plays a significant role in the cold-brew coffee market. Ready-to-consume cold-brew drinks are a fast, convenient, and portable alternative to coffee consumers, especially in metropolitan areas. Customers are looking more and more for drinks that suit their busy, go-anywhere lifestyles, and cold-brew coffee, presented in easy packages such as cans and bottles, is the solution. The convenience aspect is poised to keep pushing the growth of the cold-brew market.
3. Premiumization of Coffee Products: The premiumization trend in the coffee market is a major driver for the cold-brew coffee market. People are willing to spend extra money for high-quality, artisanal coffee, and cold brew is not an exception. Companies are prioritizing premium products with specialty beans, organic material, and specialty brewing methods. This demand for premium coffee experiences is driving the development of the cold-brew segment as consumers demand better flavor and quality in their coffee.
4. Sustainability Focus: Sustainability is a key driver in the cold-brew coffee market, with consumers increasingly looking for environmentally friendly products. Brands emphasizing sustainable sourcing, ethical trade practices, and green packaging are gaining eco-friendly consumers. With increasing environmental awareness, companies that incorporate sustainability into their business will have a competitive advantage, fueling growth in the cold-brew coffee market.
5. Innovation and Technology in Brewing Processes: Technological innovation in coffee brewing is propelling the cold-brew coffee market by enhancing product quality and consistency in cold-brew products. New processes are allowing businesses to manufacture cold brew more economically while delivering an upgraded taste profile. Furthermore, technological advancements in packaging, including resealable cans and sustainable materials, are allowing brands to address consumer needs for convenience and sustainability. This technological advancement is necessary in addressing the demand of an expanding market.
Challenges in the cold-brew coffee market are:
1. High Production Cost: The major challenge in the cold-brew coffee industry is the high production cost. Cold-brew coffee involves a long extraction process, which is labor-intensive and time-consuming. Furthermore, high-quality ingredients and packaging add to the increased cost of production. This can increase cold-brew coffee at a higher cost than usual coffee drinks, which restricts its availability to specific consumer segments. Firms must look for methods to decrease the cost of production while sustaining quality in order to stay competitive.
2. Competition from Other Segments of Coffee: The cold-brew coffee segment competes fiercely with other segments of coffee, including hot coffee, iced coffee, and RTD coffee drinks. Some consumers can have a penchant for traditional coffee beverages or are not ready to pay extra for cold-brew variants. In order to survive in such a competitive scenario, cold-brew brands will need to differentiate themselves on the basis of product quality, innovation, and successful marketing campaigns.
3. Sustainability Issues in Sourcing and Packaging: Although sustainability is a motivating factor in the cold-brewed coffee industry, it is also challenging. Ethically and sustainably sourcing high-quality beans is costly, and not all coffee-growing countries offer strong fair trade certifications. Furthermore, making packaging eco-friendly without affecting the quality of the product is a huge challenge. Finding a balance between sustainability and cost and product quality is an enduring obstacle for cold-brew brands.
The cold-brew coffee market is influenced by a number of drivers, including premiumization, convenience, health consciousness, and sustainability. Nevertheless, the issues of high cost of production, competition from other segments of coffee, and sustainability need to be managed in order for the growth to continue. Businesses within the market have to innovate and adjust to these aspects in order to remain competitive and benefit from the opportunities created by changing consumer trends.
List of Cold-Brew Coffee Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies cold-brew coffee companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the cold-brew coffee companies profiled in this report include-
• Starbucks Coffee Company
• Nestlé
• Califia Farms
• JAB Holding Company
• HighBrewCoffee
• Kohana Coffee
• La Colombe Coffee Roasters
• RISE Brewing
• Heartland Food Products Group
• Sleepy Owl Coffee
Cold-Brew Coffee Market by Segment
The study includes a forecast for the global cold-brew coffee market by preparation, distribution, and region.
Cold-Brew Coffee Market by Preparation [Value from 2019 to 2031]:
• Drip Coffee Makers
• Single Cup Brewers
• Cold Brewing
• Espresso
• Others
Cold-Brew Coffee Market by Distribution [Value from 2019 to 2031]:
• Company-owned Outlets
• Supermarkets & Hypermarkets
• Convenience Stores
• Online
Cold-Brew Coffee Market by Region [Value from 2019 to 2031]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Cold-Brew Coffee Market
The cold-brew coffee market has seen exponential growth over the past few years, fueled by growing consumer interest in high-quality, ready-to-consume coffee drinks. The trend is especially noticeable in the United States, where cold-brew coffee has become popular for being less acidic and smoother in taste than regular coffee. China, Germany, India, and Japan are also seeing heightened interest with coffee culture on the rise internationally. Production process innovations, packaging, and new flavor lines are driving the market growth, offering opportunities for growth in several regions and segments.
• United States: The United States is still the biggest market for cold-brew coffee, with increasing demand from consumers for ready-to-drink (RTD) coffee drinks. Cold-brew coffee sales have skyrocketed as consumers prefer drinks that are convenient yet do not lack quality or taste. Large coffee chains like Starbucks and Dunkin' have broadened their cold-brew lines, and smaller specialty producers have sprung up to address the demand for high-end versions. The demand for health-oriented, low-acid beverages contributes to the growth of the cold-brew market, and new trends in flavor profiles and packaging appeal to younger, more urban coffee consumers.
• China: Cold-brew coffee in China is becoming increasingly popular as part of the general trend towards coffee culture acceptance. The increasing trend for western-style drinks among young consumers, particularly tier-1 cities such as Beijing and Shanghai, is fueling demand for cold-brew coffee. With more consumers seeking new alternatives to traditional tea, coffeehouses and cafes are adding cold-brew to appeal to the millennial and Gen Z crowds. Moreover, global coffee chains are helping popularize cold-brew coffee in the mainstream, as well as localized offerings that are aligned with Chinese taste buds.
• Germany: Germany's cold-brew coffee market is increasing steadily as the nation adopts the trend for premium, convenient drinks. Although coffee drinking is still robust in Germany, the cold-brew market is in its nascent stages compared to the U.S. But demand is rising, led by younger coffee consumers who want smoother, less bitter coffee beverages. Cold-brewed coffee is increasingly popular in cafes and supermarkets, and the growth of small, local roasters is fueling the move to more artisan and premium offerings. Germans' heightened interest in healthier and low-acid drinks also helps to drive the trend.
• India: Cold-brew coffee, while still a relatively niche product in India, is gaining traction among urban coffee consumers. The developing coffee culture in cities such as Bangalore, Mumbai, and Delhi is opening up new avenues for cold-brew coffee, particularly in the high-end beverage market. Young consumers, especially those looking for alternative, healthier options to traditional caffeinated beverages, are attracted to cold brew's smoother, less acidic taste profile. With more and more coffee shops introducing cold-brew options and global coffee chains expanding into the market, the potential for growth of cold-brew coffee in India is huge.
• Japan: Japan, with its established coffee culture, is experiencing growing demand for cold-brew coffee as part of the trend toward ready-to-drink. Japanese consumers are famous for their love of high-quality products, and cold-brew coffee is a good fit for this trend. Large coffee chains and convenience stores are both introducing cold-brew coffee in ready-to-drink formats, especially in cities. The market for convenience and high-end drinks, along with Japan's increasing passion for coffee innovation, makes cold brew a suitable substitute for traditional coffee beverages.
Features of the Global Cold-Brew Coffee Market
Market Size Estimates: Cold-brew coffee market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
Segmentation Analysis: Cold-brew coffee market size by preparation, distribution, and region in terms of value ($B).
Regional Analysis: Cold-brew coffee market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different preparation, distribution, and regions for the cold-brew coffee market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the cold-brew coffee market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
FAQ
Q1. What is the growth forecast for cold-brew coffee market?
Answer: The global cold-brew coffee market is expected to grow with a CAGR of 9.2% from 2025 to 2031.
Q2. What are the major drivers influencing the growth of the cold-brew coffee market?
Answer: The major drivers for this market are the rising preference for convenient & ready-to-drink beverages, the growing popularity of healthier coffee alternatives, and the increasing coffee culture.
Q3. What are the major segments for cold-brew coffee market?
Answer: The future of the cold-brew coffee market looks promising with opportunities in the company-owned outlet, supermarket & hypermarket, convenience store, and online markets.
Q4. Who are the key cold-brew coffee market companies?
Answer: Some of the key cold-brew coffee companies are as follows:
• Starbucks Coffee Company
• Nestlé
• Califia Farms
• JAB Holding Company
• HighBrewCoffee
• Kohana Coffee
• La Colombe Coffee Roasters
• RISE Brewing
• Heartland Food Products Group
• Sleepy Owl Coffee
Q5. Which cold-brew coffee market segment will be the largest in future?
Answer: Lucintel forecasts that, within the preparation category, cold brewing is expected to witness the highest growth over the forecast period.
Q6. In cold-brew coffee market, which region is expected to be the largest in next 5 years?
Answer: In terms of region, North America is expected to witness the highest growth over the forecast period.
Q7. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the cold-brew coffee market by preparation (drip coffee makers, single cup brewers, cold brewing, espresso, and others), distribution (company-owned outlets, supermarkets & hypermarkets, convenience stores, and online), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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