Cold Brew Coffee Market size to grow at a CAGR of 8.8%: North America to account for 61% growth - Technavio

Market Overview: A Brew of Opportunity

Cold brew coffee, known for its slow-steeped preparation process that delivers a rich, bold flavor, has transcended niche status to become a mainstream favorite. The market’s growth is propelled by a shift in consumer lifestyles, with an increasing number of people seeking refreshing, low-acidity alternatives to traditional hot coffee. The rise of e-commerce, coupled with the proliferation of cafes and specialty coffee shops, has further accelerated adoption.

From 2025 to 2029, the cold brew coffee market is expected to witness steady expansion, with North America leading the charge. The region’s dominance is attributed to a strong coffee culture, high disposable incomes, and a growing preference for premium RTD beverages. Meanwhile, emerging markets in Asia-Pacific and Europe are also contributing to the global upswing, driven by urbanization and a burgeoning middle class.

Market Segmentation: Breaking Down the Brew

The Technavio report provides an in-depth segmentation of the cold brew coffee market, offering a clear view of its diverse landscape. The market is categorized based on product type, distribution channel, and geography, highlighting key areas of opportunity for stakeholders.

By Product Type:

• Ready-to-Drink (RTD) Cold Brew: This segment is expected to dominate, driven by convenience-seeking consumers and the proliferation of innovative flavors such as nitro cold brew and infused varieties.
• Ground Cold Brew Coffee: Popular among home brewers, this segment caters to DIY enthusiasts who prefer crafting their own cold brew experiences.
• Cold Brew Concentrates: Gaining traction for their versatility, concentrates appeal to both retail and foodservice sectors.

By Distribution Channel:

• Offline Channels: Including supermarkets, hypermarkets, and specialty stores, these remain a cornerstone of cold brew sales, particularly in North America and Europe.
• Online Channels: E-commerce platforms are witnessing exponential growth, offering consumers easy access to a wide range of brands and subscription models.

By Geography:

• North America: Leading with a projected 61% contribution to global growth, driven by the U.S. and Canada’s affinity for premium coffee products.
• Europe: A mature market with growing demand for organic and sustainable cold brew options.
• Asia-Pacific: An emerging hotspot, with countries like Japan and South Korea embracing cold brew trends.
• Rest of the World (RoW): Including Latin America and the Middle East, where market penetration is steadily increasing.

This segmentation underscores the multifaceted nature of the cold brew coffee market, offering businesses actionable insights to tailor their strategies.

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Key Drivers and Trends Fueling Growth

Several factors are brewing success for the cold brew coffee market:

• Premiumization and Health Consciousness: Consumers are increasingly opting for cold brew due to its perceived health benefits, such as lower acidity and higher antioxidant content compared to traditional coffee.
• Innovation in Flavors and Packaging: Companies are introducing nitro cold brew, flavored variants (e.g., vanilla, caramel), and eco-friendly packaging to capture a broader audience.
• Rise of RTD Beverages: Busy lifestyles are driving demand for convenient, grab-and-go coffee options, particularly among millennials and Gen Z.
• Sustainability Focus: Brands adopting sustainable sourcing and production practices are gaining favor as environmental awareness grows.

However, challenges such as high production costs and competition from alternative beverages like iced tea and energy drinks could temper growth. Despite these hurdles, the market’s trajectory remains overwhelmingly positive.

Drivers, trends, and challenges have an impact on market dynamics, which can impact businesses. Find more insights in a sample report!

Competitive Landscape: Top Players Brewing Success

The cold brew coffee market is highly competitive, with both established giants and innovative startups vying for market share. Technavio’s report identifies over 15 key players shaping the industry, including:

• Starbucks Corporation – A leader in RTD cold brew with its widely popular Nitro Cold Brew line.
• Nestlé S.A. – Expanding its presence through brands like Nescafé and Starbucks-branded cold brew products.
• The Coca-Cola Company – Leveraging its distribution network with brands like Costa Coffee cold brew.
• Dunkin’ Brands Group, Inc. – A strong contender in the U.S. market with its cold brew offerings.
• Califia Farms – Known for plant-based and organic cold brew options, appealing to health-conscious consumers.
• High Brew Coffee – A pioneer in the RTD segment, emphasizing bold flavors and portability.
• Stumptown Coffee Roasters – A premium brand offering artisanal cold brew with a cult following.
• La Colombe Coffee Roasters – Renowned for its draft latte and cold brew cans, blending innovation with quality.
• Chameleon Cold-Brew – A standout in organic and ethically sourced cold brew concentrates.
• Peet’s Coffee – Expanding its cold brew portfolio with a focus on rich, flavors.

These companies are driving innovation and competition, ensuring the market remains dynamic and consumer-centric.

Regional Spotlight: North America’s Cold Brew Boom

North America’s 61% contribution to global growth is no surprise given its coffee culture and appetite for premium beverages. The U.S., in particular, is a hotbed for cold brew innovation, with chains like Starbucks and Dunkin’ rolling out new products and smaller brands like Califia Farms carving out niches in the organic and plant-based space. Canada, too, is witnessing in demand, fueled by a growing café culture and eco-conscious consumers.

Why This Matters for Businesses and Consumers

For businesses, the cold brew coffee market presents a golden opportunity to tap into a high-growth segment with diverse consumer appeal. From launching new flavors to expanding online presence, the possibilities are vast. For consumers, the market’s evolution means more choices whether it’s a nitro cold brew on the go or a sustainable concentrate for home brewing.

About Technavio

Technavio is a leading global technology research and advisory company, delivering actionable insights to help businesses identify market opportunities and develop effective strategies. With over 500 specialized analysts, Technavio’s report library boasts more than 17,000 reports, covering 800 technologies across 50 countries. Serving enterprises of all sizes, including over 100 Fortune 500 companies, Technavio empowers clients to thrive in evolving market landscapes.