Cold Brew Coffee Market Size

Cold Brew Coffee Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

Cold brew coffee is the latest coffee trend. The cold brew coffee market is estimated to be worth $1.33 billion in 2024, which is expected to reach $3.25 billion by 2032. The CAGR (compound annual growth rate) is 11.74%. The rising popularity of cold brew coffee, which has a more delicate taste and lower acidity than traditional coffee, is the main reason for the increase in market size. The rising popularity of ready-to-drink beverages and the growing health consciousness of consumers are also driving the demand for cold brew coffee, which is often seen as a healthier alternative to energy drinks and sweetened drinks. The market is expected to continue to grow. There are a number of large cold brew coffee companies that are constantly expanding their product lines to compete in this market. In addition to the cold brew coffee that has been around for a long time, such as the Blue Bottle Coffee Company, there are various new products such as ready-to-drink coffee that has been launched in cans and bottles to meet the needs of consumers. These companies are also strengthening their market share by forming strategic alliances with beverage distributors and investing in sustainable brewing methods. These factors will play a key role in the future growth of the cold brew coffee market.

Regional Market Size

Regional Deep Dive

The Cold Brew Coffee Market is experiencing a significant growth in various regions, mainly driven by the changing trends in consumer preferences for ready-to-drink beverages and the growing popularity of coffee culture. In North America, especially in the United States, cold brew has moved from a niche to a mass-market product. In Europe, the market is characterized by a growing trend towards premiumization and sustainability, while the Asia-Pacific region is experiencing a surge in demand due to the increasing coffee consumption and the launch of new products. The Middle East and Africa are gradually adopting cold brew coffee, influenced by the region's evolving coffee culture. In Latin America, cold brew coffee is being developed in a variety of ways, taking advantage of the rich coffee heritage of the region.

North America

• The cold-brew coffee market is a thriving one, driven by the success of brands like Dunkin’ and Starbucks.
• In the United States, cold brew has been a favorite drink for many years. With the advent of nitrogen-infused cans, the beverage has been further enhanced.
• The cold brew market has been pushed by the growing interest in health and well-being. As a result, many brands have introduced organic and low-calorie cold brew options to cater to health-conscious consumers.

Europe

• The cold brew is the latest trend in Europe, where the artisanal method is being followed by the likes of Cold Brew Coffee Co. and Brewed by Hand.
• A new way of thinking, a new way of living, a new way of looking at the world. It is the world of sustainable fashion, with sustainable packaging and sustainable sourcing, as we see with the Minor Figures brand, which focuses on plant-based ingredients.
• A change in the rules for the labelling of foods and for the declaration of nutritional values has led to a greater transparency in the declaration of ingredients and a change in the way consumers trust the products they buy.

Asia-Pacific

• The cold-brew coffee market is booming in South Korea and Japan, with the growth of specialty coffee shops.
• E-commerce is becoming increasingly important for the distribution of cold brews, with companies relying on this platform to reach a wider audience, especially during the pandemic.
• Among the younger people, the habits of coffee drinking are changing.

MEA

• The cold brew market in the Middle East is gradually expanding. Brands such as Coffee Lab have introduced cold brews that cater to local tastes.
• The increasing popularity of coffee culture in urban areas has brought about the appearance of speciality coffee shops, where cold coffee is part of the menu, thereby raising the level of public awareness.
• Governmental initiatives to encourage coffee production and export in countries such as Ethiopia are expected to spur the development of local production and innovation in cold brews.

Latin America

• In the United States, where the cold brew has been the favorite of the majority, a number of the more progressive cafés have begun to introduce varieties of their own, such as the 'Kolombo' and the 'La Colombe'.
• In the midst of this burgeoning coffee tourism, local producers are experimenting with cold brews, creating special blends to highlight the diversity of the region's coffee profiles.
• The economics of the coffee business, with its fluctuating prices, is causing producers to diversify. Cold coffee is proving popular on both the local and export markets.

Did You Know?

“Cold brew coffee is generally less acidic than hot brew, so it is popular with people who have stomach troubles.” — National Coffee Association

Segmental Market Size

The cold coffee market is growing rapidly, mainly because of the growing demand for convenient, ready-to-drink coffee. The popularity of cold beverages, especially among young people, is a major factor driving this growth. Besides, the preference for less acidic coffee is growing. Also, the trend towards premiumization in the beverage sector is driving the demand for high-quality cold brews.

Cold brew coffee is in a state of advanced adoption. The most prominent brands are Starbucks and Dunkin’ Donuts, which are leading the way in the retail and on-the-go formats. The main applications are in the form of ready-to-drink beverages available in grocery stores and coffee shops, and specialty cold brew offerings in coffee shops. The macro-developments of health-conscious consumption and sustainable development, including eco-friendly packaging, are accelerating growth. Nitrogen infusion and new brewing methods are also shaping the evolution of the category, improving taste profiles and shelf life.

Future Outlook

The market for cold-brewed coffee is expected to grow at a robust CAGR of 11.74% from 2024 to 2032, with a projected value increase from $1.33 billion to $3.25 billion. This growth is driven by the increasing preference for cold beverages among consumers, particularly among younger consumers who prefer the smoother, less acidic taste of cold-brewed coffee. Also, as health-conscious consumers continue to seek alternatives to traditional coffee, the demand for cold-brewed coffee is expected to penetrate deeper into the mass coffee market, with penetration rates of cold-brewed coffee among coffee drinkers projected to reach more than 30% by 2032, up from about 15% in 2024.

The key technological advancements in brewing methods and packaging are anticipated to further boost the market growth. Cold brew coffee pods and ready-to-drink cold brew are expected to make the product more accessible and convenient for consumers. Meanwhile, the trend towards sustainable production is also affecting the production practices. Cold brew coffee producers are increasingly adopting eco-friendly packaging and sourcing methods. Also, the government initiatives to promote healthier beverages and limit sugar content in drinks are likely to support the growth of cold brew coffee as a naturally low-calorie beverage. These factors will continue to drive the cold brew coffee market growth. As the cold brew coffee becomes a staple of the beverage industry, it is gaining traction among a widening consumer base seeking quality and convenience.