Cold Brew Coffee Market Size & Growth Report to 2030

Key Findings:

• The global market size was valued at ~ USD$ 1 Bn and expected to register a higher CAGR of > 25% by 2030
• By beans type, the arabica beans segment held the largest revenue share in 2023
• Geographically, North America is estimated to dominated the market in the benchmark year

The global cold brew coffee market size was valued at around USD 1 billion in 2023 and anticipated to register a higher CAGR of over 25% during the forecast period from 2024 to 2030. The growing consumer preferences for smoother, less acidic coffee flavors have significantly boosted the demand for cold brew. The convenience of ready-to-drink (RTD) formats, coupled with innovative flavor profiles and premiumization strategies, appeals to a diverse demographic, including those seeking on-the-go options and those willing to pay a premium for a high-quality coffee experience. The global expansion of the cold brew trend, coupled with increasing awareness of health and wellness attributes, further contributes to market growth. Additionally, the accessibility of cold brew in retail channels, strategic partnerships and collaborations, and the rising popularity of at-home cold brew products are reinforcing the market’s upward trajectory. As sustainability becomes a more critical consumer concern, the industry’s responsiveness to eco-friendly packaging and production practices adds another dimension to the driving forces behind the market’s success.

Market Snapshot:

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Market Trends:

Increased Popularity and Mainstream Adoption: Cold brew coffee has experienced a noteworthy transition from being a niche, specialty beverage to a widely embraced and mainstream choice. Its unique brewing process and distinct flavor profile, characterized by smoothness and lower acidity, have resonated with a diverse consumer base, contributing to its broader acceptance and consumption across various demographic groups.

Innovative Flavors and Varieties: The cold brew coffee market is witnessing a surge in creativity and innovation, particularly in the realm of flavor development. Brands are continually pushing boundaries by introducing a spectrum of flavored cold brew options. These encompass not only traditional flavors but also inventive infusions and nitrogen-infused varieties, aiming to provide consumers with a diverse and premium coffee experience.

Ready-to-Drink (RTD) Convenience: Convenience remains a key driver in the cold brew coffee market’s evolution. The advent of ready-to-drink (RTD) formats, available in convenient packaging such as cans, bottles, and cartons, has met the demand for on-the-go beverage options. This level of accessibility aligns with the fast-paced lifestyles of consumers seeking a hassle-free and instantly gratifying coffee experience.

Sustainable Packaging Initiatives: With an increasing emphasis on environmental sustainability, the cold brew coffee industry is witnessing a notable shift towards eco-friendly packaging solutions. Brands are actively adopting recyclable materials, reducing single-use plastics, and exploring innovative packaging alternatives. This sustainability focus aligns with the environmentally conscious preferences of a growing consumer base.

Expansion of Cold Brew in Retail Channels: The availability of cold brew coffee has expanded beyond specialty coffee shops to mainstream retail channels. Supermarkets, convenience stores, and online platforms now feature a wide array of cold brew offerings, contributing to the beverage’s heightened visibility and accessibility in the market.

Market Challenges:

The cold brew coffee market faces notable challenges that impact its dynamics and future development. One significant challenge is the potential saturation of the market, given the increasing number of brands and products entering the space. This heightened competition poses difficulties for both established and emerging players in differentiating their offerings and maintaining market share. Moreover, the reliance on specialty coffee beans for cold brew production may expose the industry to fluctuations in coffee bean prices, impacting production costs.

Market Opportunities:

The cold brew coffee market presents significant opportunities for growth and innovation. As consumer preferences continue to gravitate towards premium and unique coffee experiences, there is room for brands to explore diverse flavor profiles, specialty blends, and limited-edition releases, thereby catering to the evolving taste preferences of a discerning consumer base. The expansion of distribution channels, both in physical retail stores and online platforms, opens up new avenues to reach a wider audience and enhance accessibility. Moreover, the trend towards sustainability offers opportunities for differentiation through eco-friendly packaging solutions and transparent sourcing practices, appealing to the growing segment of environmentally conscious consumers.

Market Insights:

The global cold brew coffee market is bifurcated into beans type, distribution channel, and geography. On the basis of bean type, the market is further segmented into robusta, arabica, and others. Arabica beans dominated the market in the benchmark year 2023. Arabica beans are known for their smooth, mild flavor profile, lower acidity, and aromatic qualities, making them highly favored among consumers seeking a refined and nuanced coffee experience. These beans are often associated with specialty and premium coffee offerings, aligning well with the elevated and sophisticated image that many cold brew coffee brands aim to project. The preference for Arabica beans in cold brew formulations caters to the growing demand for high-quality, specialty coffee beverages among discerning consumers.

Arabica Beans: Arabica beans are often favored in the cold brew coffee market due to their smooth and mild flavor profile, which complements the cold brewing process well. Arabica beans are known for their aromatic qualities, lower acidity, and nuanced flavors, making them a popular choice among specialty coffee enthusiasts. The demand for Arabica beans in cold brew coffee production reflects consumers’ preferences for high-quality and premium coffee experiences.

Robusta Beans: Robusta beans are another essential component in the cold brew coffee market, known for their bold flavor profile and higher caffeine content compared to Arabica beans. While Robusta beans are traditionally associated with espresso blends and instant coffee, they are increasingly used in cold brew coffee to add depth and intensity to the flavor profile. Robusta beans are valued for their robust body and earthy, chocolatey notes, contributing to the complexity of cold brew blends.

Others: Apart from Arabica and Robusta beans, the cold brew coffee market may also feature other bean varieties, including specialty and single-origin beans sourced from different regions worldwide. These bean varieties offer unique flavor profiles and characteristics that cater to diverse consumer preferences and contribute to the artisanal and gourmet aspects of cold brew coffee offerings. Additionally, blends incorporating other bean varieties aim to differentiate products and create distinctive taste experiences for consumers.

The cold brew coffee market research report presents the analysis of each segment from 2020 to 2030 considering 2023 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2024 to 2030.

Historical & Forecast Period

• 2020-22 – Historical Year
• 2023 – Base Year
• 2024-2030 – Forecast Period

Market Segmentation:

By Beans Type:

• Robusta
• Arabica
• Others

By Distribution Channel:

• Supermarket & Hypermarket
• Convenience Stores
• Company-Owned Outlets
• Online
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

Geographically, North America dominated the global cold brew coffee market in the benchmark year 2023. The dominance is driven by the widespread acceptance and mainstream adoption of cold brew beverages in the United States. The trend originated in artisanal coffee shops, gaining popularity among millennials and younger demographics seeking unique and refreshing alternatives to traditional hot coffee. The convenience and on-the-go appeal of ready-to-drink cold brew products further fueled its rapid integration into daily routines. North American consumers, particularly in the U.S., embraced the smoother and less acidic flavor profile of cold brew, turning it into a staple across various demographics and contributing to its dominance in the region.

The dominance of North America in the cold brew coffee market is also evident in the diverse range of cold brew products available, including innovative flavors, concentrated formats, and collaborations with other beverage categories. Additionally, the region’s dynamic coffee culture, coupled with the robust presence of established coffee chains and specialty cafes, has played a pivotal role in shaping and sustaining the cold brew trend. As the market continues to evolve, North America remains a key influencer in driving the global popularity of cold brew coffee.

Competitive Landscape:

Some of the prominent market players operating in the global cold brew coffee market are Califia Farms LP, High Brew Coffee, Starbucks Corporation, Nestle S.A., and Dunkin’ Brands Group, Inc. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Recent Developments:

• In 2022, Spinn, the hardware-enabled coffee marketplace revolutionizing the home coffee-drinking experience, unveiled a pioneering cold brew capability for its brewing equipment. This innovation introduces a novel feature to the Spinn app, allowing users to swiftly update and access the new functionality. Coffee enthusiasts can now enjoy the convenience of preparing a cold brew in under 60 seconds using Spinn’s cutting-edge brewing technology.
• In 2021, Blue Tokai, India’s foremost specialty coffee company, disrupted the market with the introduction of six distinctive cold brew varieties. The innovative product range includes Classic Light, Classic Bold, Cherry Coffee, Tender Coconut, Passion Fruit, and Single Origin from Ratnagiri Estate. This strategic move aimed to diversify Blue Tokai’s offerings and cater to a broader audience, showcasing the brand’s commitment to delivering unique and flavorful cold brew options in the rapidly evolving coffee market.

Key Companies:

• Califia Farms LP
• High Brew Coffee
• Starbucks Corporation
• Nestle S.A.
• Dunkin’ Brands Group, Inc.
• JAB Holding Company
• Coca-Cola Company
• PepsiCo, Inc.
• La Colombe Coffee Roasters, Inc.
• Caveman Coffee Co.
• Wandering Bear Coffee

Key Questions Answered by Cold Brew Coffee Market Report

• Global cold brew coffee market forecasts from 2024-2030
• Regional market forecasts from 2024-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2024-2030 covering 15 major countries from the regions as mentioned above
• Cold brew coffee submarket forecasts from 2024-2030 covering the market by beans type, distribution channel, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level cold brew coffee markets from 2024-2030
• Competitive Landscape and market positioning of top 10 players operating in the market