Cold Brew Coffee Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Arabica, Robusta, Others), By Distribution Channel (Hypermarkets/ Supermarkets, Convenience Stores, Online, Others), By Region, By Competition 2019-2029

Market Overview

Global Cold Brew Coffee Market was valued at USD 1.45 Billion in 2023 and is anticipated to grow during the forecast period with a CAGR of 11.2% through 2029. Cold brew coffee was initially introduced as an exclusive beverage in the foodservice industry. However, the popularity of handcrafted and premium product opened up lucrative growth opportunities for the global market. Furthermore, the global market is expanding due to rising penetration in the RTD beverage category. Major corporations such as Starbucks have been compelled to broaden their range of products to include cold brew due to the increasing demand for iced coffee. For example, Starbucks started selling cold brew coffee pitcher packs so that customers could prepare coffee at home.

The producers are searching for an increasing number of significant players in the industry due to the rising demand for and popularity of cold brew coffee. A new flavour that can help draw in customers is being developed by manufacturers in response to the growing number of coffee enthusiasts. The cold brew coffee market revenue is influenced by a plethora of different factors. Increasing sales, a changing lifestyle, population expansion, rapid urbanisation, emerging economies, and the success of certain brands are some of the drivers propelling the industry. In an effort to reach a specific global audience, Cold Brew Coffee Market Trends manufacturers are currently growing their online presence. The taste and flavour of coffee beverages, the humid atmosphere, and consumer awareness are some of the minor aspects that contribute to the daily gain in market share. Because consumers are becoming more aware of the advantages and health benefits of coffee beans, the industry has grown recently. The market will increase more quickly due to the increasing population and their increasing awareness of the various varieties and qualities of coffee.

In coming years, there will likely be an increase in the market for cold brew coffee. Over the projection period, a notable increase is anticipated. The market has seen an increase in customers in recent years due to growing knowledge of its advantages and growing popularity. For that reason alone, everyone loves the market because it has a low acidity and high caffeine content. The product for ready-to-drink beverages also increases the market and helps to significantly increase the market share. As a result, in recent years, the global Cold Brew Coffee market CAGR has increased due to many reasons associated to Cold Brew Coffee.

Key Market Drivers

Consumer Preference and Trend towards Specialty Coffee

The global cold brew coffee market has experienced substantial growth due to changing consumer preferences and a rising trend toward specialty coffee. Consumers are increasingly seeking unique and high-quality coffee experiences, driving the demand for cold brew, known for its smooth and less acidic flavor profile. This shift is not only evident in traditional coffee-drinking regions but is also expanding in emerging markets as awareness of cold brew's distinct attributes grows.

The rise in specialty coffee culture, characterized by an emphasis on premium quality, ethically sourced beans, and artisanal brewing methods, has contributed to the popularity of cold brew. As consumers become more discerning about their coffee choices, companies in the cold brew market are responding by offering diverse flavor profiles, innovative brewing techniques, and convenient packaging to meet evolving preferences.

In-depth market research indicates that the surge in demand for specialty coffee is likely to sustain the growth of the cold brew market, prompting companies to invest in sourcing high-quality beans, refining production processes, and differentiating their products to cater to this discerning consumer base.

Rising Health Consciousness and Perceived Benefits

The global trend toward healthier lifestyles has significantly impacted the cold brew coffee market. Cold brew is often perceived as a healthier alternative to traditional hot coffee due to its lower acidity and smoother taste. As consumers become more health-conscious, there is a growing preference for beverages that offer both refreshment and a perceived health benefit.

Cold brew's unique brewing process, which involves steeping coffee grounds in cold water for an extended period, results in a beverage with reduced acidity levels compared to hot-brewed coffee. This characteristic is particularly appealing to individuals with sensitive stomachs or those looking to minimize acid intake. Additionally, the smoother taste of cold brew makes it an attractive option for those who want to enjoy coffee without the bitterness associated with traditional brewing methods.

Health-related marketing strategies, such as promoting antioxidants and potential energy-boosting properties in cold brew, have further fueled its popularity. Companies in the market are capitalizing on these perceived health benefits by incorporating them into their branding and communication strategies, appealing to a broad consumer base that values both taste and wellness.

Convenience and Ready-to-Drink (RTD) Formats

The demand for convenience in the food and beverage industry has translated into a significant driver for the cold brew coffee market. Ready-to-drink (RTD) cold brew products, available in cans, bottles, or cartons, have gained widespread acceptance due to their accessibility and on-the-go convenience. Busy lifestyles and the desire for instant refreshment have led consumers to opt for pre-packaged cold brew options that eliminate the need for brewing or additional preparation.

The convenience factor extends beyond the RTD format to cold brew concentrates and pre-packaged cold brew coffee bags. Concentrates allow consumers to customize the strength and flavor of their cold brew at home, while coffee bags simplify the brewing process, making it more accessible to a broader audience.

Market players are investing in packaging innovations and distribution strategies to make cold brew products readily available in various retail outlets, including convenience stores, supermarkets, and online platforms. The convenience-driven approach is a key driver propelling the global cold brew coffee market into new demographics and market segments.

Innovations in Flavors, Blends, and Brewing Techniques

Innovation is a driving force in the global cold brew coffee market, with companies continually exploring new flavors, blends, and brewing techniques to differentiate their products. The diverse preferences of consumers have led to a proliferation of flavored cold brew options, ranging from classic vanilla and mocha to more exotic choices like lavender or cinnamon-infused cold brew.

Additionally, the introduction of nitro cold brew, a nitrogen-infused version that imparts a creamy texture and unique mouthfeel, has been a notable innovation. Nitro cold brew's popularity has expanded beyond specialty coffee shops to mainstream markets, illustrating the industry's adaptability to evolving consumer tastes.

Furthermore, collaborations between cold brew coffee companies and other beverage producers or flavor specialists have resulted in limited-edition releases, adding an element of exclusivity and excitement to the market. The continuous pursuit of new and unique flavors, blends, and brewing methods is expected to remain a major driver propelling the growth of the global cold brew coffee market.

Global Expansion and Market Penetration

The global cold brew coffee market is experiencing expansion not only in terms of product diversity but also geographically. Major players are increasingly focusing on entering new markets and regions, leveraging the growing awareness and acceptance of cold brew as a mainstream beverage.

Emerging markets, in particular, present significant opportunities for market penetration. As consumer preferences shift and the coffee culture evolves in these regions, there is a growing demand for innovative and premium coffee products, including cold brew. Market players are strategically establishing partnerships, distribution networks, and marketing campaigns to position cold brew as a desirable and accessible option for a diverse range of consumers.

The global expansion of the cold brew coffee market is not only driven by the search for new consumer bases but also by the desire to tap into the unique characteristics of different coffee beans from various regions. This strategy aligns with the industry's commitment to providing a diverse and enriching cold brew experience for consumers worldwide.

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Key Market Challenges

Supply Chain Disruptions and Seasonal Variability

The global cold brew coffee market faces significant challenges related to supply chain disruptions and seasonal variability in coffee bean production. Cold brew's reliance on high-quality coffee beans makes it susceptible to fluctuations in supply caused by weather conditions, pest outbreaks, and geopolitical factors affecting coffee-producing regions. Seasonal variability can lead to price volatility and potential shortages, impacting production costs for cold brew manufacturers.

Supply chain disruptions, exacerbated by global events such as the COVID-19 pandemic, transportation issues, or trade disputes, can affect the timely sourcing of coffee beans and the distribution of cold brew products. Managing these challenges requires robust supply chain strategies, diversified sourcing options, and close monitoring of global coffee market dynamics.

Moreover, companies in the cold brew coffee market need to build resilient supply chains, exploring sustainable practices and supporting local coffee producers to ensure a consistent and high-quality supply of beans. Strategies that address these challenges contribute to the long-term stability and success of cold brew businesses on a global scale.

Environmental Sustainability and Ethical Sourcing

As consumer awareness of environmental and ethical issues grows, the cold brew coffee market faces challenges related to sustainability and responsible sourcing. The environmental impact of coffee cultivation, processing, and packaging is a concern for consumers who prioritize eco-friendly practices. Cold brew companies need to navigate challenges associated with waste reduction, energy consumption, and the overall carbon footprint of their operations.

Ethical sourcing is another critical aspect, as consumers increasingly demand transparency in the supply chain, fair trade practices, and support for local coffee-growing communities. The challenge lies in ensuring that the beans used in cold brew production are sourced responsibly, with fair compensation provided to farmers and adherence to ethical labor practices.

Overcoming these challenges requires a commitment to sustainability throughout the entire value chain. Cold brew companies can implement eco-friendly packaging, invest in renewable energy sources, and establish partnerships with coffee producers that prioritize environmental conservation and social responsibility. Addressing these challenges not only meets consumer expectations but also aligns with the broader industry trend towards ethical and sustainable business practices.

Competition and Market Saturation

The cold brew coffee market has witnessed rapid growth, leading to increased competition and potential market saturation. As more companies enter the market, differentiating products becomes challenging, and maintaining a competitive edge requires continuous innovation. The risk of market saturation poses challenges for both established players and new entrants, as consumers are presented with a plethora of options.

Standing out in a crowded market requires a nuanced understanding of consumer preferences, strategic branding, and a commitment to product quality. Cold brew companies must continually innovate in terms of flavors, brewing techniques, and packaging to capture and retain market share. Differentiation can also come from targeted marketing campaigns, collaborations, and a focus on unique selling propositions that resonate with specific consumer segments.

Additionally, market saturation can lead to price wars, impacting profit margins and sustainability. Companies need to navigate these challenges by fostering brand loyalty, expanding product lines, and exploring untapped market segments to ensure sustained growth in a competitive landscape.

Key Market Trends

Rising Demand for Ready-to-Drink (RTD) Cold Brew

The ready-to-drink (RTD) format continues to dominate trends in the global cold brew coffee market. As consumer lifestyles become increasingly fast-paced, the demand for convenient and on-the-go beverages has surged. RTD cold brew products, available in cans, bottles, or cartons, offer consumers a hassle-free way to enjoy their favorite cold brew without the need for brewing or additional preparation.

This trend aligns with the broader consumer preference for convenience, and companies in the cold brew market are responding by expanding their RTD product lines. Creative packaging designs, smaller serving sizes, and innovative flavors contribute to the popularity of RTD cold brew, making it a staple in the refrigerators of consumers worldwide. Additionally, the accessibility of RTD cold brew in various retail outlets, including convenience stores and online platforms, further drives its market dominance.

Flavor Innovations and Unique Blends

Flavor innovation remains a significant trend in the global cold brew coffee market. As consumers seek diverse and unique taste experiences, cold brew manufacturers are experimenting with a wide range of flavor profiles and blends. From classic vanilla and mocha to more unconventional options like lavender, cardamom, or even exotic fruit infusions, the market is witnessing an explosion of creativity in flavor development.

Nitro cold brew, infused with nitrogen for a creamy texture and enhanced mouthfeel, continues to be a trendsetter. This innovation not only adds a layer of sophistication to the product but also caters to consumers looking for a premium and indulgent cold brew experience. The exploration of innovative flavors and brewing techniques reflects the industry's commitment to keeping consumers engaged and excited about the evolving world of cold brew.

Sustainability and Eco-Friendly Practices

Sustainability has become a cornerstone trend in the global cold brew coffee market as consumers increasingly prioritize environmentally friendly products. Companies are responding by adopting eco-friendly practices throughout the entire value chain, from sourcing coffee beans to packaging and distribution. Sustainable sourcing, fair trade practices, and support for local coffee-growing communities are integral aspects of this trend.

Eco-friendly packaging, including recyclable materials and reduced plastic usage, is gaining prominence. Cold brew companies are proactively addressing concerns about the environmental impact of single-use packaging by exploring alternatives that align with consumer expectations for responsible and sustainable business practices. This trend is not only a response to consumer demands but also a strategic move to future-proof the industry against evolving environmental regulations.

Health and Wellness Focus

The health and wellness trend continues to influence consumer choices in the cold brew coffee market. Cold brew is positioned as a healthier alternative to traditional hot-brewed coffee due to its lower acidity and smoother taste. This positioning has resonated with health-conscious consumers who are seeking beverages that not only provide refreshment but also align with their lifestyle choices.

Cold brew companies are capitalizing on this trend by incorporating health-focused marketing strategies, emphasizing antioxidants, and promoting potential energy-boosting properties. Additionally, the versatility of cold brew allows for the creation of functional beverages, such as cold brew infused with adaptogens, collagen, or other wellness ingredients. The intersection of taste and health benefits positions cold brew as a beverage of choice for consumers seeking a balance between indulgence and well-being.

Segmental Insights

Type Insights

The Cold Brew Coffee market segmentation, based on type, includes Arabica, Robusta and others. The Arabica segment held the majority share in 2023 of the Cold Brew Coffee market revenue. Arabica contains a variety of health benefits, including antibacterial characteristics that keep the mouth healthy, stress reduction, improved metabolism, and skin hydration. These elements are estimated to boost the segment's growth.

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Regional Insights

In 2023, North America dominated the market, accounting for largest market share of overall revenue due to the increasing spending power of millennials and their preference for coffee over other beverages. Moreover, a number of key companies are focusing on introducing new variants of the product through various distribution channels, which is also likely to have a positive impact on the cold brew coffee market.

Asia Pacific is expected to register the highest CAGR due to growing product demand, especially in India, China, and Japan. The success of gourmet coffee brands in India has resulted in a rising preference for specialty products over regular ones, thereby offering lucrative growth opportunities to the market.

Recent Developments

In 2024,  Starbucks launched three new beverages: Iced Hazelnut Oatmilk Shaken Espresso, Pistachio Cream Cold Brew, and Pistachio Latte.The expansion of their product range provided a greater variety of choices for adding flavor to cold brew coffee market.

In 2023, Nestlé extended its popular Coffee mate creamer brand to include iced coffee, offering it in two flavors: French vanilla and caramel. This broadening of their product selection offered more options for flavoring chilled coffee beverages.

Key Market Players

• Califia Farms, LLC
• JAB Holding Company
• High Brew Coffee
• Kohana Coffee 
• Nestlé S.A.
• La Colombe Coffee Roasters
• Starbucks Corporation
• RISE Brewing Co.
• Sleepy Owl Coffee Private Limited
• Heartland Food Products Group, LLC

Report Scope:

In this report, the Global Cold Brew Coffee Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Cold Brew Coffee Market, By Type:

o   Arabica

o   Robusta

o   Others

• Cold Brew Coffee Market, By Distribution Channel:

o   Hypermarkets/ Supermarkets

o   Convenience Stores

o   Online

o   Others

• Cold Brew Coffee Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

§  Egypt

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Cold Brew Coffee Market.

Available Customizations:

Cold Brew Coffee market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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