Global Cold Brew Coffee Market Outlook 2030

Global Cold Brew Coffee Market Overview

• The global cold brew coffee market is valued at USD 1.90billion, based on a five-year historical analysis. This market is primarily driven by increasing consumer demand for specialty coffee, alongside a heightened focus on health-conscious choices. Cold brew coffee is often perceived as less acidic and smoother than traditional coffee, making it a popular choice among health-conscious consumers. The markets expansion is also fueled by the growing preference for ready-to-drink beverages, particularly in retail environments such as supermarkets and specialty stores.

• North America, particularly the United States, dominates the cold brew coffee market, owing to the established coffee culture and the high consumer demand for premium and specialty beverages. Cities like New York and Los Angeles, known for their vibrant coffee culture and numerous artisanal coffee shops, contribute significantly to market dominance. Japan also plays a key role in market growth due to the country's rapid adoption of convenience-based coffee consumption. The strong retail infrastructure in these regions supports the accessibility of cold brew coffee.
• Cold brew coffee producers must navigate import and export regulations that vary by country. In 2023, the U.S. imposed tariffs on coffee imports from Brazil due to trade disputes, impacting supply chains. However, emerging trade agreements, like the Regional Comprehensive Economic Partnership (RCEP) in Asia-Pacific, offer opportunities for streamlined trade in cold brew products, easing export restrictions.

Global Cold Brew Coffee Market Segmentation

By Product Type: The global cold brew coffee market is segmented by product type into ready-to-drink, coffee concentrates, and coffee beans. The ready-to-drink sub-segment holds a dominant market share. The ease of consumption, coupled with widespread availability in supermarkets, is a key driver of this trend. Ready-to-drink cold brew is preferred for its convenience, particularly among on-the-go consumers. Leading brands in this space, such as Starbucks and Califia Farms, have further contributed to the popularity of this segment through strong branding and distribution strategies.

By Region: The market is divided into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. North America has the largest market share due to the ingrained coffee culture and significant consumer interest in premium coffee options. Consumers in North America are willing to pay more for premium cold brew options, making the region a significant contributor to the overall market. Europe is also witnessing growth due to the rising demand for specialty coffee beverages, particularly in countries like the UK and Germany.

Global Cold Brew Coffee Market Competitive Landscape

The global cold brew coffee market is characterized by several key players that dominate through strong brand loyalty, expansive distribution networks, and continuous product innovations. The competitive landscape includes both established multinational corporations and smaller niche brands. Many companies are focusing on expanding their product lines, particularly in the ready-to-drink and concentrate segments.

Global Cold Brew Coffee Market Analysis

Market Growth Drivers

• Increased Consumer Preference: The rise in consumer preference for cold brew coffee is driven by changing lifestyles and demand for convenience. In 2023, global consumption of ready-to-drink beverages reached 150 billion liters, with cold brew coffee becoming increasingly popular due to its smooth taste and lower acidity. This preference is also bolstered by the rising disposable incomes, especially in the United States, where average household income stood at $87,864 in 2022, contributing to higher coffee consumption. The trend is also notable in markets such as Japan and South Korea.
• Health Benefits: Consumers are becoming more health-conscious, preferring cold brew due to its lower acidity and potential benefits like better digestion. In 2023, health-related food and beverage sales globally amounted to $1.1 trillion. Countries like Germany and France, where health-conscious trends are prominent, reported increased consumption of cold brew among younger demographics. This surge reflects shifting dietary habits focused on wellness.
• Specialty Coffee Surge: In 2022, the specialty coffee market witnessed a significant rise in demand, particularly in countries like the U.S. and Brazil. This growth is driven by rapid urbanization and the expansion of coffee shop chains. Specialty coffee roasters and cafes have substantially contributed to global employment, with over 700,000 coffee-related jobs in the U.S. alone. As part of this trend, cold brew coffee is gaining traction as consumers increasingly prefer premium, high-quality brews. The combination of rising disposable incomes and evolving consumer preferences further accelerates the demand for cold brew coffee in these markets.

Market Challenges

• Limited Consumer Awareness: Despite its growing popularity, cold brew coffee faces challenges in penetrating broader markets. In emerging economies such as India, where annual per capita coffee consumption remains low at about 100 grams, awareness of cold brew is still limited. This contrasts with developed nations like the U.S., where cold brew accounts for a substantial share of specialty coffee sales. The low penetration in other regions underscores the need for marketing efforts to raise awareness.
• High Cost of Production: Cold brew coffee production is cost-intensive due to the extended brewing process and the higher bean-to-water ratio required. In Brazil, coffee bean prices surged in 2023, driven by inflationary pressures and unfavorable weather conditions, significantly impacting overall production costs. These added expenses present challenges for producers in maintaining competitive pricing, making it difficult to reach price-sensitive markets. As a result, consumer accessibility is limited, especially in regions where affordability is a major consideration for coffee products.

Global Cold Brew Coffee Market Future Outlook.

Over the coming years, the cold brew coffee market is expected to experience considerable growth, driven by continuous consumer demand for premium beverages and increasing awareness of the health benefits associated with cold brew coffee. Furthermore, innovations in packaging and product formats, including eco-friendly and ready-to-drink options, will fuel market expansion. Geographically, the market will likely witness strong growth in the Asia-Pacific region as consumers in countries like China and Japan show a rising interest in premium coffee options.

Market Opportunities:

• Stakeholder Ecosystem: The cold brew coffee market involves a complex ecosystem of stakeholders, including farmers, roasters, distributors, and retailers. In Colombia, over 500,000 coffee farmers depend on sustainable coffee farming practices, while global retail chains, such as Starbucks, which operates over 35,000 stores globally, play a crucial role in distributing cold brew products. The collaboration among these stakeholders is vital to ensuring the smooth functioning of the cold brew coffee supply chain.
• Supplier Power: Coffee bean suppliers hold significant power, especially in producing countries like Brazil and Vietnam, where the top two producers accounted for over 55 million metric tons of coffee in 2023. Supply chain disruptions, such as adverse weather conditions or trade tariffs, can greatly influence prices and supply availability for cold brew coffee manufacturers.