Cold Brew Coffee Market Trends, Opportunities, and Forecast by 2031

The cold brew coffee market is expected to register a CAGR of 23% during 2023–2031. Consumption of innovative coffee flavors is likely to remain a key trend in the market.

Cold Brew Coffee Market Analysis

The cold brew coffee market is experiencing significant growth, driven by several trends, such as the young generation being willing to explore new coffee varieties and flavors, which drive the growth of the market. As the lifestyle is getting busier, it is leading to the rise in demand for ready-to-drink products, and cold brew coffee fits the criteria. In addition, the rise in consumer knowledge of coffee beans, rising consumer expenditure on more expensive coffee beverages, quickly growing health concerns among people, and the rising popularity of cold brew coffee are factors boosting the market growth. Moreover, the major players offer creative and new coffee products that highly focus on premium packaging and unique flavors.

Cold Brew Coffee Market Overview

Cold brew coffee is a beverage that is made by blending cool water and ground coffee and then steeping it in a refrigerator. The cold brew extraction process extracts a series of compounds with different characteristic flavors. Compared to hot brew, such as the Americano or filter coffee, cold brew coffee is mild and sweeter with less acid. Moreover, the process of cold brewing coffee does not require heat.

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Cold Brew Coffee Market Drivers and Opportunities

Increasing Popularity of RTD Cold Brew Coffee

The surge in popularity of Ready-to-Drink (RTD) cold brew coffee is emerging as a significant catalyst propelling the expansion of the global cold brew coffee market. The appeal of RTD cold brew lies in its unique combination of convenience, premium taste, and its association with healthier beverage choices, which together are driving robust consumer demand. In today’s fast-paced environment, consumers increasingly seek beverages that offer both quality and instant accessibility. RTD cold brew coffee effectively addresses this need by delivering a smooth, rich coffee experience in a convenient, ready-to-consume format. This convenience is particularly attractive to busy professionals, commuters, and millennials who require a quick yet satisfying caffeine boost without compromising on flavor or quality. Leading coffee brands and beverage manufacturers have recognized the growth potential of this segment and are actively expanding their product offerings. Innovations in packaging—including recyclable materials and nontraditional container formats—are enhancing the appeal of RTD cold brew products. Additionally, product differentiation through the introduction of new flavors, specialty coffee blends, and limited-edition varieties is broadening consumer choice and stimulating repeat purchases. Distribution channels are also evolving rapidly to support this demand, with RTD cold brew increasingly available across convenience stores, supermarkets, cafes, and online platforms. This enhanced accessibility is facilitating penetration into new markets and consumer segments. Furthermore, the health-conscious consumer trend plays a pivotal role in RTD cold brew’s rise. Its perceived lower acidity and smoother taste compared to traditional hot coffee attract consumers focused on wellness and digestive comfort. This perception, coupled with the trend toward premiumization, is encouraging consumers to shift from traditional coffee formats to RTD cold brew products. As a result, the RTD cold brew coffee market is not only experiencing accelerated sales growth but is also expanding its consumer base by attracting coffee enthusiasts and casual drinkers alike. This dynamic growth is expected to continue over the forecast period, reinforcing RTD cold brew coffee as a vital and fast-growing segment within the broader global beverage industry.

Growing Preference for Cold Brew Over Iced Coffee

The increasing popularity of cold brew over traditional iced coffee is the main driver for the cold brew coffee market. Cold brew appeals as an alternative to traditional coffee due to its smoother and less acidic taste relative to conventionally brewed hot coffee. Coffee consumers are turning away from conventional iced coffee in favor of cold brew products. Coffee shops, retailers, and manufacturers are responding to the trend by expanding the range of cold brew segments, creating hybrid or all-natural cold brew variations, and introducing new flavors and ready-to-drink cold brew options such as MistoBox, Starbucks, Panera Bread’s cold brew served with ice, and the Coffee Bean’s Ice Blended and Ice Pressed both served cold, to name a few. Healthy consumers, including millennials, are more likely to choose cold brew for its perceived health benefits and craft appeal. As the cold brew trend continues and the market expands, those businesses that invest in equipment and marketing efforts will gain by adding a share of the growing market for coffee that is edging its way towards a more acquired taste.

Cold Brew Coffee Market Segmentation

The scope of the global cold brew coffee market is segmented based on type, category, and distribution channel.

• Based on type, the cold brew coffee market is segmented into arabica, robusta, and others.
• By category, the market is bifurcated into traditional and decaf.
• In terms of distribution channel, the market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others.

Cold Brew Coffee Market Share Analysis by Geography

The Cold Brew Coffee Market Report comprises a detailed analysis of five major geographic regions, which includes current and historical market size and forecasts for 2021 to 2031, covering North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and South & Central America. Each region is further sub-segmented into respective countries. This report provides analysis and forecasts of 18+ countries, covering cold brew coffee market dynamics such as drivers, trends, and opportunities that are impacting the markets at the regional level. Also, the report covers Porter’s Five Forces analysis, which involves the study of major factors that influence the cold brew coffee market in these regions.

Cold Brew Coffee Market Regional Insights

The regional trends and factors influencing the Cold Brew Coffee Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Cold Brew Coffee Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Cold Brew Coffee Market Report Scope

Cold Brew Coffee Market Players Density: Understanding Its Impact on Business Dynamics

The Cold Brew Coffee Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Cold Brew Coffee Market News and Recent Developments:

The cold brew coffee market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few developments in the market for innovations, business expansion, and strategies are:

• Bones Coffee Co. has introduced its ready-to-drink (RTD) cold brew lattes in five flavors, including Sinn-O-Bun, French Toast, Holy Cannoli, S'morey Time, and Electric Unicorn, available in Walmart stores. The lattes are made with 100% cold brewed coffee, whole milk, and a touch of sweetness, using Arabica beans ethically sourced from Brazil. (Source: Bones Coffee Co, Newsletter, July 2023)

Cold Brew Coffee Market Report Coverage and Deliverables

The “Cold Brew Coffee Market Size and Forecast (2021–2031)” provides a detailed analysis of the market covering below areas:

• Cold brew coffee market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Cold brew coffee market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Cold brew coffee market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments in the cold brew coffee market
• Detailed company profiles