The global cold brew coffee market size was valued at USD 339.7 million in 2018 and is expected to register a CAGR of 25.1% from 2019 to 2025. Cold brew coffee was initially introduced as an exclusive beverage in the foodservice industry. However, the popularity of handcrafted and premium product opened up lucrative growth opportunities for the global market.
Moreover, increasing penetration in the RTD beverage category is also spurring the growth of the global market. The growing popularity of iced coffee has driven key companies like Starbucks to expand its product offerings to include cold brew. For instance, Starbucks introduced cold brew coffee pitcher packs that enable consumers to make coffee at home.
The online distribution channel is projected to expand at the highest CAGR from 2019 to 2025. Other distribution channels, such as convenience stores and supermarkets & hypermarkets, are also expected to witness significant growth in the next few years. Companies, such as Starbucks, RISE Brewing Co., Sleepy Owl, and Dr Pepper, are targeting grocery channels, online retails, and convenience stores to increase their sales.
For instance, Starbucks introduced its cold brew products in U.S. grocery and convenience stores in the past few years and is now focusing on online channels to expand its global reach. Companies, such as Starbucks, have opened their stores in these countries due to potential growth opportunities.
The company-owned outlets' segment held the largest market share in 2018. Rising consumer preference for specialty coffees offered by company outlets is driving the segment. For instance, RISE Brewing Co. had remarkable success in establishing a market position through its specialty channels and independent stores.
Other distribution channels, such as convenience stores and supermarkets & hypermarkets, are also expected to witness significant growth in the next few years. Companies, such as Starbucks, RISE Brewing Co., and Dr Pepper are targeting grocery channels and other convenience stores to increase their customer base. Starbucks introduced its cold brew products in U.S. grocery and convenience stores in the past few years and is focusing on online channels to strengthen its global presence.
Drive-by U.S., North America was the largest regional market in 2018 and accounted for more than 70% of the overall share. According to the U.S. Department of Agriculture, coffee consumption in the U.S. was up by 1.5% in 2016 due to the increasing spending power of millennials and their preference for coffee over other beverages. Moreover, a number of key companies are focusing on introducing new variants of the product through various distribution channels, which is also likely to have a positive impact on the cold brew coffee market.
Asia Pacific is expected to register the highest CAGR from 2019 to 2025 due to growing product demand, especially in India, China, and Japan. The success of gourmet coffee brands in India has resulted in a rising preference for specialty products over regular ones, thereby offering lucrative growth opportunities to the market.
Some of the key companies operating in the global market include Califia Farms, JAB Holding Company, HighBrewCoffee, Kohana Coffee, Nestlé, La Colombe Torrefaction, Starbucks, RISE Brewing Co., Sleepy Owl, and Heartland Food Products Group.
Report Attribute |
Details |
Market size value in 2020 |
USD 522.9 million |
Revenue forecast in 2025 |
USD 1.63 billion |
Growth Rate |
CAGR of 25.1% from 2019 to 2025 |
Base year for estimation |
2018 |
Historical data |
2015 - 2017 |
Forecast period |
2019 - 2025 |
Quantitative units |
Revenue in USD million/billion and CAGR from 2019 to 2025 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Distribution channel, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope |
U.S.; Germany; Italy; Spain; Poland; China; India; Japan; Brazil |
Key companies profiled |
Califia Farms; JAB Holding Company; HighBrewCoffee; Kohana Coffee; Nestlé; La Colombe Torrefaction; Starbucks; RISE Brewing Co.; Sleepy Owl; Heartland Food Products Group |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global cold brew coffee market report on the basis of distribution channel and region:
Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)
Supermarkets & Hypermarkets
Company Owned Outlets
Convenience Stores
Online
Coffee Regional Outlook (Revenue, USD Million, 2015 - 2025)
North America
The U.S.
Europe
Germany
Italy
Spain
Poland
Asia Pacific
Japan
China
India
Central & South America
Brazil
Middle East & Africa
b. The global cold brew coffee market size was estimated at USD 420.9 million in 2019 and is expected to reach USD 522.9 million in 2020.
b. The global cold brew coffee market is expected to grow at a compound annual growth rate of 25.1% from 2019 to 2025 to reach USD 1.63 billion by 2025.
b. North America dominated the cold brew coffee market with a share of 72.3% in 2019. This is attributed to increasing spending power of millennials and their preference for coffee over other beverages in the U.S. and Canada.
b. Some key players operating in the cold brew coffee market include Califia Farms, JAB Holding Company, HighBrewCoffee, Kohana Coffee, Nestlé, La Colombe Torrefaction, Starbucks, RISE Brewing Co., Sleepy Owl, and Heartland Food Products Group.
b. Key factors that are driving the market growth include the growing popularity of handcrafted products and increasing penetration in the RTD beverage category.
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Amidst the global pandemic crisis and the indefinite lockdown across nations, the consumer food & beverage industry first witnessed high demand for household staples, healthy food items, and consumables with longer shelf lives. The demand for frozen food products, fruits & vegetables, eggs, flour, and whole grains, among others, witnessed a considerable increase during the early stages of the crisis. Presently, most companies in the industry are faced with low consumption of their products and supply chain challenges. The companies are focusing more on altering their supply chains in order to reinforce their online presence and delivery measures, in an attempt to adapt to the present business environment. The changes in consumer buying behavior and the dynamic shifts towards online and D2C distribution channels may have serious implications on the near future growth of the industry. Our team is diligently working towards accounting these factors in our report with the aim of providing you with the up-to-date, actionable market information and projections.
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