In this article, you’ll learn:
- What is defining current iced coffee trends and consumer behaviour
- What is driving the growth of cold and iced coffee
- How iced coffee trends are shaping business decisions
Iced coffee went mainstream well before cold brew did. Its popularity dates back to the 1920s, while cold brew didn’t take off until the early 2010s. Cold brew has grown rapidly since, reshaping the cold coffee space and influencing iced coffee demand along the way.
Iced coffee still holds the larger market share at $9.81 billion as of 2025 – nearly three times cold brew’s $3.87 billion. Cold brew, however, is the faster-growing category, with forecasted annual growth of over 22%, compared to iced coffee’s 6.98% over the next decade.
To better understand these changes, I spoke to Alex French and Andrew Healy, co-founders at Bizzy Cold Brew.
What defines current iced coffee trends?
Current iced coffee trends are defined by consumer demand for convenience, customisation, and a more transparent, less-processed source of caffeine. Shoppers – particularly Gen Z – want cold coffee that fits mobile lifestyles, uses simple ingredients, and can be tailored in strength, sweetness, and forma
Many consumers remain loyal to familiar beverages – two-thirds of Americans still drink coffee every day. That said, they are increasingly open to exploring new flavours, as long as quality and health benefits are guaranteed.
Iced coffee caters to these needs because it is functional and versatile. “People do not want one standard drink anymore,” Alex points out. “They want to choose the milk, the sweetness, the strength, the flavour, maybe even add protein or functional ingredients depending on what they need that day.”
Cold coffee is also gaining appeal as a cleaner, steadier energy source. “A lot of people are looking at iced coffee as a more familiar, more transparent source of energy than traditional energy drinks, especially when it’s unsweetened or made with simple ingredients,” Alex explains.
That same shift is driving interest in formats like nitro coffee, which offers a creamy mouthfeel and a naturally sweeter taste without additives.
Lifestyle changes are also reshaping how consumers want cold coffee delivered. Ready-to-drink (RTD) options have grown rapidly into one of the most popular cold coffee formats over the past decade. “This growth reflects a broader shift in lifestyle, as people become more mobile and their routines more fluid,” Andrew adds.
For Alex, concentrates are the format with the most potential. “They give people café-style flexibility at home without asking them to become baristas,” he explains.
What is driving iced coffee trends?
The growth of cold and iced coffee is driven by changing consumer lifestyles, a shift toward year-round consumption, and younger generations’ demand for convenient, customisable, premium beverages.
Iced coffee used to be an exclusive summer treat. Changing lifestyles, evolving tastes, and a new generation of drinkers have made it an all-season beverage. Industry leaders like Starbucks report on iced coffee trends that cold beverages now account for roughly 60% of their total sales globally.
“What defines the category today is convenience, customisation, and a more premium cold experience,” Alex says.
For Andrew, this growth signals a shift away from consumption tied to routines and seasons – like a quick hot cup before work or a cold latte on a warm afternoon. “Today, people still rely on coffee,” he explains, “but they expect more from it because it has to adapt to their routine.”
The change in iced coffee trends is driven by younger consumers, particularly Gen Z, who prioritise functional beverages that suit busy, on-the-go lifestyles. A recent NCA report found that non-espresso specialty beverages like cold brew and nitro rose nearly 42% from 2020 to 2025.
“What’s driving iced coffee trends, in my opinion, is a mix of lifestyle and product evolution,” Alex explains. “People are more mobile, their schedules are less predictable, and they want coffee that fits into motion.”
Customisation and multi-format availability align well with those expectations. “In a fast-paced world where many decisions are made for us, that level of control matters,” Andrew adds.
How are iced coffee trends shaping business decisions?
Iced coffee trends are pushing businesses to expand cold menus, invest in batch production, and develop multi-format strategies – including RTD and concentrates – to meet growing demand at scale while maintaining consistency.
For many businesses, keeping up starts with adding cold coffee to the menu. “Datassential showed cold brew growing from under 1% of restaurant menus in 2014 to 7.7% in 2024,” Alex explains, “which tells you this is not niche anymore, but it’s become a real part of how coffee menus are built.”
Some operators go further. “That means building drinks specifically for cold consumption, tightening the core coffee base, and then layering in customisation without losing consistency,” Alex adds. A good example is Nestlé and Starbucks partnering to bring iced coffee concentrates into the home.
Production has had to keep up, too. “On the café side, batch brewing has become a core part of operations,” Alex points out. Speed of service is a key factor. “Cold coffee has helped unlock faster service models because, when done right, the product is already prepared.”
Consistency at scale, though, remains the central challenge. “As demand grows, brands have to build systems that remove variability,” Alex advises. “That’s where you see more investment in standardised processes, centralised production, or formats like RTD and ready-to-use espresso shots.”
Hardtank plays its part in realising these goals through private-label manufacturing of RTDs, with ready-to-market recipes for those looking to launch quickly, and fully custom formulas for those who want something uniquely their own.
Iced coffee trends: Key takeaways
- The cold brew segment is the fastest-growing in the cold coffee market, with a forecast annual growth rate of over 22%.
- Consumers – particularly Gen Z – want convenience, flexibility, and transparency sources, driving demand for RTD, concentrates, and nitro formats.
- Businesses are investing in batch production, standardised processes, and multi-format offerings to meet the growing demand for cold coffee at scale.
Looking to respond to changing iced coffee trends? Explore Hardtank’s solutions for cold brew production and RTD development, or contact the team to get started.
Iced coffee trends: FAQ
Why is cold brew growing faster than iced coffee?
Cold brew’s growth is driven by consumer demand for cleaner, more transparent energy sources and its availability across multiple formats – RTD, concentrate, and nitro – making it easier for brands to reach consumers in different contexts.
Why has cold coffee become a year-round drink rather than just a summer one?
Changing lifestyles, younger consumer preferences, and greater product variety have all played a role. Gen Z in particular treats coffee as a functional, on-the-go beverage rather than a seasonal ritual, and brands have responded with formats like RTDs and concentrates that fit into busy, unpredictable schedules year-round.
What formats are driving the most growth in the cold coffee market?
Ready-to-drink (RTD) options have seen rapid growth over the past decade, reflecting consumers’ increasingly mobile lifestyles. Concentrates are also highlighted as having strong potential, offering café-style flexibility at home. Nitro coffee is gaining traction too, thanks to its higher natural caffeine, creamy texture, and naturally sweeter taste without additives.
Want to learn more about our cold brew systems?
- Explore private label RTD: Learn how to launch your own canned coffee
- Discover your profits: With our ROI calculator.
- Speak to the team: Contact Hardtank here.
