Cold Coffee is Booming in the U.S.
In 2023, Americans spent about $17.7 billion on out-of-home cold coffee, including iced coffee, cold brew, and frozen coffee drinks. This is more than double the $8.5 billion consumers spent in 2016, according to food service research firm Technomic.
The Rise of Cold Coffee
Cold drinks accounted for about 75% of Starbucks’ beverage sales in its fiscal 2024 third quarter, up from 37% in 2013. Younger coffee drinkers are fueling the growth, with 45% of coffee drinkers ages 18 to 24 saying they had a cold coffee in the past day, according to a survey conducted in July 2024 by the National Coffee Association.
Cold Coffee’s Appeal
“There is less craving for variety with those older generations… I think it’s kind of hard to break that mindset with a generation that, for so much of their lifetime, it has just been that hot beverage,” said Kelsey Olsen, Mintel’s U.S. food and drink analyst.
Olsen said that iced coffee and cold brew are accessible entry points for young consumers. These drinks are highly customizable, with syrups, toppings, and cold foam incorporated into many of the popular offerings at major coffeehouse chains.
The Blurring of Coffee Lines
Ready-to-drink coffee, which is almost always drank cold in the U.S., has also become more popular. Consumption rose 43% between 2019 and 2023, according to Euromonitor International. “If you look at something like, the Starbucks Double Shot or Java Monster, is that an energy drink? Is that ready to drink coffee? I don’t know, the consumer doesn’t really seem to care,” said Matthew Barry, insight manager for food and beverages at Euromonitor International.
A Sustainable Trend
“One of the reasons we’re so bullish on cold coffee and cold brew and all of these things is that’s now becoming ingrained in the consumer and in what they expect and what they look for. And as these cohorts continue to grow and age and come into middle age, et cetera, that a lot of that preference is going to stick similar to how we saw that with the older consumers,” said David Henkes, senior principal at Technomic.
Conclusion
Cold coffee has taken off in the United States, with younger consumers driving the growth. The trend is expected to continue, with cold coffee becoming an ingrained part of consumer expectations and preferences.
FAQs
Q: What is the most popular type of cold coffee?
A: Iced coffee, cold brew, and frozen coffee drinks are the most popular types of cold coffee.
Q: Why are younger consumers driving the growth of cold coffee?
A: Younger consumers are more open to trying new flavors and are driving the growth of cold coffee.
Q: What are the most popular coffee chains for cold coffee?
A: Starbucks, Dunkin’, and Dutch Bros are among the most popular coffee chains for cold coffee.
Q: Is cold coffee here to stay?
A: Yes, cold coffee is expected to continue to grow in popularity as younger consumers continue to drive the trend.
