Little more than a decade ago, cold coffee sales were limited to warmer climates, constrained by seasonal consumption trends, and generally second to classic, hot coffee staples.
Fast forward to 2024, and cold coffee is a truly global phenomenon. Many consumers prefer it regardless of weather or season; it is widely available on supermarket shelves in ready-to-drink (RTD) formats, and it outperforms hot coffee revenue in the largest multinational branded chains.
Erstwhile, cold brew growth has carved out a robust and dynamic share of the cold coffee space, exhibiting tremendous growth leveraged by modern consumer trends for healthy, functional and convenient beverage options.
The National Coffee Association’s (NCA) 2023 annual report indicated that the number of people who said they drink cold brew on occasion had increased by 73% since 2019, with a further 60% increase among those who reported drinking it regularly.
To gain a clearer understanding, we will examine global cold brew market growth statistics, key trends, and industry evidence, further supporting the segment’s potential.
For added insight, we spoke with Maciej Duszak, co-founder and head of sales at Hardtank.
The global cold brew coffee market landscape
First, some headline figures:
- $3.16bn: the estimated value of the global cold brew coffee market in 2024
- $16.2bn: the forecasted value of the global cold brew coffee market in 2032
- 22.67% – the expected CAGR of the cold brew coffee market over the coming eight years
According to a 2024 report from Fortune Business Insights, the global cold brew coffee market grew 22.1% year-on-year between 2023 and 2024, from $2.59bn to $3.16bn, exhibiting astonishing growth. For reference, the overall global coffee market grew by just 5.4%.
The cold brew segment is outstripping overall coffee industry growth by over 15% annually, albeit from a smaller base.
For a clearer picture, consider cold brew growth alongside other high-performing pockets of growth within the coffee market.
- The global plant-based milk market is growing at an estimated 9.1% CAGR and is expected to reach a value of $47.9bn by 2034.
- The global specialty coffee market is expected to more than triple between 2020 and 2030, from $21bn to $66bn, at 11.3% CAGR.
- Global RTD coffee should reach $64.78bn by 2032, growing at 8.54% CAGR over the next eight years.
Let’s break down the key trends behind cold brew growth.
What’s driving cold brew growth globally?
Key global drivers of cold brew growth include evolving consumer preferences for “premium” coffee experiences, health and wellness trends, and convenience. Cold brew coffee inherently appeals to all three.
Globally, younger generations – Gen Alpha, Gen Z and Millenials – make up 67% of the population and are responsible for 50.1% of global spending. Gen Z is likely to be the largest generation ever, and as a result, their spending power will only increase.
Let’s dive into these areas in more detail.
Premiumisation
Customers are willing to pay premium prices for coffee they consider to be of higher quality. Moreover, the explosion in the availability of high-quality coffee means the average consumer is spoiled for choice, and businesses have to be on top of their game to compete.
Consumers view cold brew as a premium product. It is novel, artisanal, nuanced in flavour, and healthy. When served without additives, cold brew ticks multiple consumer trend boxes, positioning it well for further growth as these trends strengthen.
Moreover, in markets where coffee purchasing is driven less by health and wellness or coffee provenance and more by indulgent-led decisions or refreshment, cold brew still aligns with key trends – it’s cold, customisable and convenient.
Health and wellness
According to the National Coffee Association’s 2024 report, 21% of coffee drinkers believe cold brew coffee to be a healthier option than other coffee types. Millennials and Gen Zers, in particular, are adopting a more holistic approach to health and wellness and seeking beverage options with healthy and functional credentials.
Cold brew’s naturally lower acidity and bitterness compared to espresso reduces the average consumer’s need to mask such flavour notes with neutralising dairy or plant-based dairy alternative products.
Functional cold brew, with a naturally higher caffeine content or added nootropics, conveniently packaged in RTD formats like cans or cartons, is well suited to modern consumer preferences for low- or no-calorie beverage options.
Convenience
Regardless of gains in quality, customisation or customer experience, besides price, convenience is the key purchasing driver for coffee consumption.
“Convenience always wins,” says Maciej. “It is the most important factor for the retail market, globally, whether a petrol station chain, supermarket, or branded coffee shop chain.”
“In the past, convenience has been a trade-off for quality. However, what we first saw in craft brewing is now more and more evident in the coffee industry: convenient products that are increasingly higher in quality.”
“The impact of the Third Wave on coffee shops and on-site consumption has extended to RTD and off-site consumption.”
Thanks to recent developments in technology, food safety, and private label production, cold brew is well-positioned to capitalise on this macro trend. Unlike a brand-new product, consumers are familiar with coffee and thus more easily converted to RTD coffee purchases. Moreover, general cold coffee popularity improves consumer perception of on-the-go coffee options.
Where are we seeing sustained cold brew growth?
“You can look almost anywhere in the world and recognise the potential cold brew growth,” says Maciej.
“The biggest market of all is the United States, no question. However, some of our biggest distributors are based in markets you wouldn’t necessarily consider to be prime cold brew markets.
“We have already seen positive development from our partners in China, Spain, Turkey, and the UK, as well as emerging markets like Eastern Europe. Also, the GCC and Southeast Asia check all the rights boxes for further cold brew development – warm year-round climates, already-established coffee cultures and generally high purchasing power and GCP.”
Beyond our own experiences, there is widespread market evidence of cold brew growth on a global scale. Let’s examine how that breaks down.
United States
The United States cold brew market was valued at $752.4 million at the beginning of 2024 and is expected to continue growing at a CAGR of over 22% to 2030. The strong outlook is buoyed by a cultural familiarity with convenient, on-the-go beverages and widespread cold coffee consumption.
Starbucks’ 2023 third-quarter financial report stated that cold drinks represented 75% of its overall beverage sales in the United States – three of every four coffees ordered across Starbucks’s 8,900 American outlets were served cold. In 2020, Starbucks stores prepared over 90 million Pumpkin Cream Cold Brews, outselling the legendary (and hot) pumpkin spice latte.
Furthermore, the multinational giant has invested heavily in a new cold brew manufacturing method that will slash traditional the 20-step, 20-hour cold brew-making process, which costs the business an estimated $50m per year on labour alone. By the end of 2024, it will service the company’s entire US operation.
Peet’s, a 200+ outlet west-coast chain, bet early on cold brew growth, launching a line of RTD cold brew products back in 2017. It recently added an Ultra Coffee Concentrate designed for at-home consumption.
In 2020, specialty coffee pioneer La Colombe signed a ten-year distribution agreement with canning giant Molson Coors, exclusively for its nitro cold brew draught lattes, and Anheuser Busch became a distributor and minority investor in Kitu Super Coffee, a functional cold brew manufacturer, in the same year.
Europe
In Europe, the cold brew coffee market generated $79.4 million in revenue in 2023, less compared to the United States but growing as quickly, expected to reach $282 million by 2030 at a CAGR of 19.9%.
Germany and the United Kingdom are the two largest markets here. In the UK alone, RTD cold brew has exhibited tremendous growth, increasing by 60% between 2021 and 2024.
Following the 2019 acquisition of Europe’s largest branded coffee shop chain, Costa Coffee, by Coca-Cola, Coke CEO James Quincey made clear that the first order of business was RTD cold coffee:
“We see a great opportunity to bring Costa ready-to-drink to the marketplace,” he said. Since then, Costa has developed and launched multiple lines of cold coffee RTDs.
“Coca-Cola recognised the shift towards RTD coffee and cold brew, and they spent over half a billion dollars for the Costa brand in order to capitalise on this segment,” says Maciej.
“Nestle did the same thing with Starbucks: Nestle bought the Starbucks retail brand and is now flooding the market with coffee and cold brew RTDs. This tells you what you need to know regarding cold brew growth potential.”
In 2021, Finlays, one of Europe’s leading coffee and tea manufacturers, announced plans to open a new facility in northern England in order to supply bulk cold brew concentrate, RTD cans and bags via ambient and cold chain networks throughout Europe.
Based in Opole, Poland, Hardtank has developed a patented recirculation cold brewing methodology that can produce commercial quantities of cold brew in under an hour. This technology is built into our Baby Hardtank and Hardtank 20 commercial cold brew coffee makers.
In 2024, Hardtank partnered with international branded coffee shop chain Caffè Nero in Poland and Turkey, installing Baby Hardtank machines in 150 outlets. In each outlet where Baby Hardtanks were installed, cold brew outperformed the previously best-selling cold coffee, an iced americano.
Asia-Pacific and Australia
The Asia Pacific cold brew market exceeded $114 million in revenue in 2023 and shows signs of even stronger growth than Europe and the USA – a CAGR of 24.8% is expected to grow revenue to $843.85 million in 2032.
Similar to the United States, Asian consumers are long familiar with canned coffee via brands such as Coke’s Georgia and Suntory’s Boss, as well as cold coffee staples due to warmer climates. Many Western brands are hence joining in on the action.
China was Starbucks’ first international market, beyond North America, to feature nitro cold brew on its menus, following a highly successful roll-out of regular cold brew back in 2016.
Canadian coffee chain Tim Hortons introduced a raft of new menu options across its 580 Chinese outlets in November 2023, including multiple cold brew options: the chain sold over four million cups of cold brew in Q3.
Georgia, an RTD coffee brand owned by Coca-Cola, dominates the Japanese cold coffee market. Purchases are primarily made via one of the country’s 2.5 million beverage vending machines (Coca-Cola owns almost half of them). In 2017, Georgia announced a greater focus on ‘fresher-tasting’ RTD coffee backed by cold brew products.
Australia has thus far proved a more difficult market to penetrate, but in a recent interview with Bean Scene, Bluestone Lane’s Jai Lott said he expected cold brew growth to take off down under.
In 2020, StudyLogic Group reported that sales of Australian cold brew were growing 19.7% year over year, with 60% of out-of-home coffee beverages being served cold. In the same year, Nestle Prefessional Australia launched a nitro cold brew tap system designed to help cafes meet growing demand.
Conclusion
The growth of the global cold brew coffee sector is not limited to optimistic forecasting or specific pockets of positive development; it is a measurable, evidence-backed, international phenomenon on a clear upward trajectory. Some markets are more advanced than others, but coffee culture has continuously developed this way.
As younger generations control more global purchasing power, cold, premium, health and wellness-friendly, and convenient coffee beverages will increase in popularity. Cold brew holds a premium consumer perception, boasts robust health and wellness credentials, offers boundless customisation and innovation opportunities, and is ready-made for convenient purchasing.
When considering key consumer trends in tandem with market activity and growth forecasting, it’s clear that cold brew growth is set to expand globally.
Cold brew growth
