Cold Brew Coffee Global Market Report 2024

The cold brew coffee market size has grown exponentially in recent years. It will grow from $1.14 billion in 2023 to $1.38 billion in 2024 at a compound annual growth rate (CAGR) of 21.8%. The growth observed in the historical period can be attributed to several factors. These include shifts in consumer preferences towards diverse coffee options, the emergence and expansion of coffee culture, particularly the proliferation of specialty coffee shops, effective marketing and branding strategies employed by coffee companies, alignment with health and wellness trends influencing beverage choices, and the increasing popularity of convenient ready-to-drink coffee formats.

The cold brew coffee market size is expected to see rapid growth in the next few years. It will grow to $2.87 billion in 2028 at a compound annual growth rate (CAGR) of 20.0%. Anticipated growth in the forecast period can be linked to several key factors. These encompass the introduction of innovative flavor variations in cold brew coffee, the expansion of retail and e-commerce platforms offering these products, collaborative partnerships between different entities within the industry, a growing demand for non-dairy options among consumers, and the integration of cold brew coffee into culinary applications, enhancing its versatility and appeal. Key trends expected in this period include the development of innovative packaging solutions to enhance product presentation and convenience, the incorporation of functional ingredients into cold brew beverages for added health benefits, collaborations between celebrities and artisans to create unique offerings and experiences, and the increasing influence of cold brew coffee in culinary creations, further expanding its usage beyond traditional consumption.

The anticipated growth of the cold brew coffee market is influenced by the increasing focus on government initiatives aimed at promoting coffee production. Government initiatives involve collaborative efforts between roasters, dealers, and coffee-growing communities. An example of such initiatives is the establishment of the Saudi Coffee Company by Saudi Arabia's Public Investment Fund (PIF) in May 2022. This government-backed organization is dedicated to enhancing the Kingdom's coffee production, addressing the growing demand for coffee in Saudi Arabia. The initiative, supported by a SAR 1.2 billion ($320 million) investment, aims to boost the country's coffee sector, increasing production from 300 to 2,500 metric tons annually. The rise in such government-led endeavors contributes to the growth of the cold brew coffee market, aligning with the increasing consumption trends and investments in the coffee industry.

The cold brew coffee market is poised for growth due to the expansion of the food service industry, also known as the food and beverage industry. This sector encompasses businesses involved in the preparation, service, and delivery of food and drinks to consumers. The adoption of cold brew coffee in the food service industry reflects a response to consumer preferences for premium and refreshing beverages. Cold brew coffee, known for its smoother flavors and lower acidity, serves as a versatile base for creating innovative and customizable cold coffee-based beverages. In August 2023, the U.S. restaurant industry reported $898 billion in sales, a significant increase of $166.5 billion compared to 2021, as highlighted in a USA Today article. This substantial growth in the food service industry contributes to the expanding market for cold-brew coffee, driven by consumer demand for unique and high-quality coffee experiences.

A prominent trend in the cold-brew coffee market is the focus on product innovation, with major companies actively developing new offerings to enhance their market positions. A notable example of this trend is STōK Cold Brew, a U.S.-based cold brew coffee company that introduced a new product in January 2023 – an espresso blend cold brew. This leisurely brewed concoction boasts delightful nuances of chocolate, brown sugar, caramel, dried fruit, and nuts, catering to consumers who prioritize flavor and seek a unique coffee experience even in below-freezing temperatures.

Major players in the cold-brew coffee market are strategically engaging in partnerships to expand their businesses. Strategic partnerships involve collaborative efforts where companies leverage each other's strengths and resources for mutual benefits. An instance of such collaboration occurred in January 2021 when Farmer Bros. Co., a U.S.-based foodservice company, entered into a partnership with High Brew Coffee Inc., a U.S.-based food and beverage company. This strategic alliance aimed to enhance the distribution of High Brew's premium Ready-to-Drink (RTD) cold brew coffee products through Farmer Brothers' Direct-Store-Delivery (DSD) routes. The partnership strategically tapped into the growing popularity of RTD cold brew coffee, particularly among the younger consumer demographic, showcasing a collaborative approach to business expansion in the dynamic cold-brew coffee market.

In November 2022, Nestle SA, a Swiss-based conglomerate in food and beverage processing, successfully acquired Starbucks Corp. for an undisclosed sum. This strategic move is set to bolster Nestle's market standing and expand its global coffee alliance by integrating Seattle's Best Coffee into its portfolio. Starbucks Corp., a U.S.-based entity renowned for offering a range of coffee products, including cold-brew coffee, became part of Nestle's strategic vision through this acquisition.

Major companies operating in the cold brew coffee market report are Nestle S.A., The Coca-Cola Company, Starbucks Corporation, Heartland Food Products Group, Red Thread Coffee Co., Califia Farms LLC, La Colombe Coffee Roasters, Stumptown Coffee Roasters, Verve Coffee Roasters, UCC Ueshima Coffee Co. Ltd., Stone Creek Coffee Roasters, The New Orleans Coffee Co., Kohana Coffee LLC, High Brew Coffee, The J.M. Smucker Company, Chameleon Cold-Brew, Toddy LLC, Venice Cold Brew LLC, Slingshot Coffee Co., Cove Coffee Co., Dope Coffee Roasters, Gambino Coffee, Lucky Jack LLC, RISE Brewing Co., Seaworth Coffee Co, Station Cold Brew Coffee Co., Sunup Green Coffee LLC, ZoZozial Coffee Roasters ApS., Grady's Cold Brew, Wandering Bear Coffee.

North America was the largest region in the cold brew coffee market in 2023. The regions covered in the cold brew coffee market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the cold brew coffee market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary product types of cold brew coffee include those made from arabica, robusta, and liberica beans. Arabica coffee, derived from the Coffea Arabica plant, is esteemed for its lighter body, rich flavor, and nuanced aroma, making it a preferred choice for specialty coffees. Arabica beans contribute to a creamy, more complex taste profile with notes of fruit, chocolate, almonds, and caramel. These beans are available in both traditional and decaffeinated variants and are distributed through various channels such as company-owned outlets, convenience stores, online platforms, supermarkets, and hypermarkets.

The cold brew coffee market research report is one of a series of new reports that provides cold brew coffee market statistics, including the cold brew coffee industry global market size, regional shares, competitors with a cold brew coffee market share, detailed cold brew coffee market segments, cold brew coffee market trends, and cold brew coffee market opportunities, and any further data you may need to thrive in the cold brew coffee industry. This cold brew coffee market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The cold brew coffee market consists of sales of ready-to-drink beverages and new orleans-style cold-brew coffee. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.