Category Deep Dive: The Cold Side of Coffee

Let's talk about the hottest (or should I say coolest?) trend in the beverage world right now: iced coffee.

It's not just a summer fling anymore—cold coffee has become a year-round obsession, and the numbers are pretty jaw-dropping.

The primary culprit? You guessed it: Starbucks. Our go-to barometer for coffee trends recently dropped some eye-opening stats. In Q3 2023, a whopping 75% of their beverage sales across 15,800+ US stores were cold drinks. That's three out of every four drinks! Their cold espresso sales alone grew by 13% year-over-year. Clearly, people aren't just tolerating cold coffee—they're craving it.

But it's not just Starbucks riding this frosty wave. Take Wandering Bear Coffee, for instance. Known for their strong, organic cold brew in those quirky bag-in-box cartons, they've seen incredible growth. We're talking a 288% increase in sales volume in just one year, according to Particl data. Their top seller, the Cold Brew On Tap 96 oz, was moving 163 units per day on average during September 2024. That's a lot of cold brew!

So, what’s driving the cold coffee craze?

1. Gen Z's Influence: Younger consumers, especially Gen Z, have a strong affinity for cold coffee. It's seen as trendy, refreshing, and highly customizable. Plus, it's pretty photogenic for those Instagram stories.

2. Convenience is Key: The rise of ready-to-drink (RTD) coffee has played a huge role in normalizing cold coffee consumption. NielsenIQ data shows this category grew by 12.1% in the year leading up to April 2023. It's all about grab-and-go caffeine these days.

3. Cold Brew's Moment: Within the cold coffee category, cold brew has emerged as a star player. It's seen a 300% surge in popularity since 2016. Why? It's smoother, less acidic, and naturally sweeter than traditional iced coffee. People are digging that.

4. Bringing Cafe Quality Home: There's a growing trend of consumers wanting to recreate that coffee shop experience at home. Companies like Nespresso, Ninja, and Keurig Dr Pepper are cashing in on this desire for premium at-home coffee.

   

   Ninja Hot & Iced XL Coffee Maker with Rapid Cold Brew

   Even brands like International Delight and Target are getting in on the action with cold foam creamer lines.

There is even the new Cumulus Machine—a coffee machine that ONLY brews cold coffees. Think: cold brew, nitro, and cold espresso. One of the coolest features? It makes nitro coffee by pulling the nitrogen directly from the air! Insane.

The big picture

What we're seeing is a perfect storm of changing consumer preferences (especially among younger folks), the rise of convenient formats like RTD, successful marketing of cold brew as a premium product, and increasing availability of high-quality at-home brewing solutions.

The cold coffee boom isn't just a passing trend—it's reshaping the entire coffee industry. As someone who's been watching this space closely, I can tell you: the reign of cold coffee is just beginning. Whether you're a cold brew convert or still loyal to your hot cup of joe, one thing's for sure—the coffee world is getting a whole lot cooler 😎 

Want to dig deeper into the data behind thousands of brands? Check out Particl. They’re offering my readers 14 days totally free!