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
Giants like Starbucks have played a major role in iced drinks taking share from more traditional hot 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 Fuel Growth
Younger coffee drinkers are fueling the growth. 45% of coffee drinkers ages 18 to 24 said they had a cold coffee in the past day, according to a survey conducted in July 2024 by the National Coffee Association.
Customization and Add-Ins
Cold coffee drinks are highly customizable, with syrups, toppings, and cold foam incorporated into many of the popular offerings at major coffeehouse chains. These add-ins can largely alter the natural, bitter taste of coffee. A large frozen mocha coffee from Dunkin’ and Dutch Bros, for example, both have more than 100 grams of sugar.
Ready-to-Drink Coffee
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.
Conclusion
Cold coffee has taken off in the United States, with younger coffee drinkers driving the growth. The rise of cold coffee is attributed to its customization options, accessibility, and the blurring of lines between what constitutes a coffee. As younger consumers continue to grow and age, their preference for cold coffee is expected to stick.
FAQs
Q: Why is cold coffee so popular among younger consumers?
A: Younger coffee drinkers are fueling the growth of cold coffee due to its customization options, accessibility, and the blurring of lines between what constitutes a coffee.
Q: What is driving the growth of cold coffee?
A: The growth of cold coffee is driven by younger coffee drinkers, customization options, and the blurring of lines between what constitutes a coffee.
Q: What is the future of cold coffee?
A: As younger consumers continue to grow and age, their preference for cold coffee is expected to stick, making it a sustainable trend in the coffee industry.
