Iced Coffee Market Size, Share, Growth, and Industry Analysis, By Type (Ready-to-Drink Iced Coffee, Instant Iced Coffee & Iced Coffee Concentrates), By Application (Retail, Foodservice, Supermarkets, Convenience Stores & Online Sales), and Regional Insights and Forecast to 2033

•   
•   
  

  Request a Free sample to learn more about this report

    

ICED COFFEE MARKET OVERVIEW

The global Iced Coffee Market size was USD 13.16 Billion in 2025 and is projected to touch USD 21.18 Billion in 2033, exhibiting a CAGR of 5.43% during the forecast period.

The iced coffee market has been a rapidly developing sphere during the last few years due to an increase in the popularity of refreshing and ready-to-drink beverages and a change in coffee culture among millennials. It has added to its popularity worldwide with innovations in flavoring and packaging, as well as health- and weight-conscious formulations. The market is booming both at the retail level and at the cafe chains, particularly in warm-weather cities. The disposable incomes have increased, and the Western way of life has also led to this surge. The major stakeholders have been pouring money into the development of their products and promotional strategies to get the highest share of such a competitive environment.

COVID-19 IMPACT

Iced Coffee Industry Had a Negative Effect Due to Restricted mobility during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic also had an adverse effect on the iced coffee market, particularly at the beginning stages of the lockdowns. Iced coffee on-the-go and impulse purchases closed after the cafes, restaurants, and convenience stores were closed, leading to a drastic reduction in the sales. Production and distribution were also affected by the disruptions in supply chains and availability of the workforce. The priorities of the consumers changed in favor of necessity, and spending on the non-essential product, such as the iced coffee, was reduced. It is also important to note that restricted outdoor activities and social events occasioned the demand for ready-to-drink iced coffee products, which led to a temporary market slump.

LATEST TRENDS

Market Growth Driven by Cold Brew, Nitro, And Plant-Based Trends

 The new fad in the iced coffee market revolves around cold-brew prevalence, the proliferation of plant-based blends, the introduction of functional ingredients, and the emergence of novel drinks like nitrogenation and flavored ice cubes. Of these, the nitro iced coffee has attracted attention as a drink made in a creamy, stout-like texture and low-acid flavor that excels the taste buds of coffee drinkers as it develops a barista-style of drinking coffee without added dairy. The cold brew and nitro drinks make up almost 29 percent of the iced coffee market across the world, where demand relates to the smooth taste and more caffeine energy. Moreover, there is still the wave of plant-based milk, particularly oat and almond milk, which is filling the dairies of those health-conscious consumers.

•   
•   
  

  Request a Free sample to learn more about this report

    

ICED COFFEE MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Ready-to-Drink Iced Coffee, Instant Iced Coffee & Iced Coffee Concentrates

• Ready-to-Drink Iced Coffee: The most popular segment is the ready-to-drink (RTD) iced coffee, which is fueled by convenience and portability. The products are easily accessible at superstores, vending machines, and minimarkets. They are also favored by the consumers because they offer the same taste every time, and they are time-saving. The flavor and functional ingredients are also contributing to growth in this area through innovations.

• Instant Iced Coffee: The instant iced coffee takes away the problem of long preparation time, as it only requires powder or granules being added to cold water or milk. It appeals to cost-conscious and time-sensitive customers, particularly where the store is geographically isolated and far away from cafe chains. It has, however, been criticized many times as having no rich taste, as those that are brewed do. New quality and taste enhancements are reclaiming the attention of the consumers.

• Iced Coffee Concentrates: Iced coffee concentrates are concentrated liquids made of strong extract that can be combined with water or milk to make iced coffee. They are popular in homes and food services because they last a long time and can be adjusted in strength. This segment is growing as people want to take barista-quality coffee to their homes. Companies are also launching cold brew-based concentrate to offer additional flavor intensity and palatability.

By Application

Based on Application, the global market can be categorized into Retail, Foodservice, Supermarkets, Convenience Stores & Online Sales

• Retail: The retail category has been quite instrumental in ensuring that iced coffee is highly accessible to the consumers. It also offers different packaged products that are found in grocery stores, hypermarkets, and specialty beverage outlets. Effective branding and catchy packaging will also keep prospects attracted. The segment has an advantage of impulse buying and shifting preferences of consumers to ready-to-drink drinks.

• Foodservice: The foodservice sector encompasses cafes, restaurants, and fast food chains where iced coffee is found on the menu of the establishments. It is fueled by the desire of the consumer who wants ready-made beverages that he/she is able to customize. The temporary and fad products, such as the flavored iced lattes, increase the foot traffic and the sales. This piece was one of the losers during the outbreak, but it has now gained back with dining and takeaways.

• Supermarkets: A wide variety of high-end and low-priced brands of iced coffee are offered in supermarkets. They are ideal because they have great shelf space, offer great deals, and can submit to bulk purchases. Supermarkets also contribute to the creation of the new flavors and formats by means of tasting the product and visibility.

• Convenience Stores: Convenience stores are targeted at consumers who have little time to spend on caffeinated drinks. Individual iced coffee beverages are particularly famous in this context. Such stores are based on impulse buying and are in places where there is heavy foot traffic.

• Online Sales: The emerging online shopping patterns and advent of online stores have increased the online sales tremendously. The consumers also like the comfort of the home delivery of food and subscription rates on their desired iced coffee brands. There is also a broader choice of niche and specialized choices available over the internet. Online marketing and influencer ads are making this segment head towards the path of success.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factor

Urban Convenience Boosts Market Growth

Another key factor influencing the growth of the iced coffee industry is the interests of modern consumers who turn towards convenience in their food and beverage choices. Ready-to-drink iced coffee ensures a constant taste and quality as it eliminates time and effort. The working and living patterns in big cities have increased the use of on-the-go coffee products.

Premium Flavors and Quality Drive Market Growth

This has been exacerbated by the rise in the number of cold-brewed and certified iced coffee products, and this has increased the expectations of customers in terms of quality and flavor. Health-conscious and taste-oriented consumers have turned cold brew iced coffee into a popular soft drink due to its low acidity and smoothness. In a bid to ride this trend, brands are coming up with fancy flavors and quality ingredients. Consequently, customers are ready to invest more in good-quality iced coffee experiences, and this resulting iced coffee market growth.

Restraining Factor

Health Concerns Over Sugar and Additives Challenge Market Growth

An important limiting force concerning the iced coffee market is increasing customer anxiety about excess sugar and synthetic ingredients. Most of the ready-to-drink iced coffee products are being loaded with too many calories, sweeteners, and preservatives, something that goes against the emerging trend of health and wellness. The health-conscious consumers are also turning to read the labels and taking the low-sugar or natural alternatives. This transition can also lead to less demand for the customary iced coffee products unless brands transform their inceptions.

Plant-based Innovation and Health Trends Fuel Market Growth

Opportunity

The iced coffee market is a significant opportunity stipulated by the increased demand for plant-based and health-improving beverages. The promotion of dairy-free products such as oat milk or almond milk targets vegan and lactose-intolerant customers.

A supplement with added functional ingredients like protein, collagen, or adaptogens will interest a buyer that is health conscious. Being innovative has the potential of enabling the brands to reach new consumer groups and globalization.

Supply Chain Disruptions and Rising Costs Hinder Market Growth

Challenge

One of the major threats that the iced coffee industry experiences is supply chain interruption and fluctuation in prices of major raw materials, such as coffee beans, dairy, and wrapping products.

The availability and price of the products can be drastically affected by unpredictable weather, geopolitical tensions, and transport delays. These problems do not only raise the cost of production but also impact the distribution in a timely manner.

•   
•   
  Request a Free sample to learn more about this report

    

ICED COFFEE MARKET REGIONAL INSIGHTS

• North America:

U.S. Innovation and Demand Significantly Drive North American Market Growth

The North American region has captured almost half of the world market foriced coffee, and they have done this through effective coffee culture in that region, ease of spending income, and ease of coffee being distributed to all because of the availability of coffee in the form of cafes, convenience stores, supermarkets, and online stores. The dominance of the region is also determined by the influence of the major coffee chains, the leadership of which is held by Starbucks, on the cold brew and specialty iced coffees: the cold beverages are considered to account for over three-quarters of Starbucks sales in the U.S. by the fiscal year 2024. The United States Iced Coffee Market is the most important market in North America, as about 90 percent of the launched iced coffee products and the hub of creativity in terms of tastes, packaging, and plant-based products. Most of the growth of the North American cold brew market is about 35 percent as a result of the U.S. consumer euphoria, which has led to the RTD iced coffee and gourmet global trends.

• Europe:

Health Focus And Sustainability Boost European Market Growth

Europe holds remarkable iced coffee market share in the world due to its health drive, sustainability, and premiumization approach. The European iced coffee market, already topping 320 million liters in 2023, is the third largest in value after the US and Asia, thanks largely to markets in Germany, France, and the U.K. In Europe, close to half of iced coffee launches also use eco-friendly packaging, with vegan, low-sugar, and lactose-free positions now growing by over 20%.

• Asia:

Urbanization and Café Culture Drive Asia’s Market Growth

Asia is the main point in the iced coffee market globally, particularly in Asia-Pacific, which holds approximately27% of the total global market share with an estimated growth of nearly 8 percent CAGR till 2033. The RTD (ready-to-drink) iced coffee market is also very strong in the region—Asia-Pacific had about 40% of the RTD products market share in 2024, and that is mainly provided by Japan, China, and South Korea as large consumers. This has been propelled by increasing urbanization, rising disposable incomes, and the penetration of Western-style cafe culture, with functional and premium cold brews coming into the spotlight of the consumers.

KEY INDUSTRY PLAYERS

Key Players' Innovation and Partnerships Accelerate Market Growth

Some of the areas in which key players in the industry are making a significant impact on the iced coffee market include innovation and strategic alliances as well as considerable advertising. Companies like Starbucks, Nestle, Coca-Cola, and Dunkin are spending on premium coffee and expanding to plant-based food as well as environmentally friendly packaging to meet the consumer needs. They are also expanding ones that suit the ready-to-drink (RTD) products, and in most cases, they are in partnership with retail giants and online stores such that the distribution and sales grow. Starbucks, in its turn, actively makes market trends and presents such new cold drinks as Pink Drink or a New Ultramarine Frappuccino, and such RTDs as Nescafé of Nestle and Georgia Coffee by Coca-Cola are the leaders of RTD sales all over the world.

List Of Top Iced Coffee Companies

• Starbucks Corporation (U.S.)
• Nestlé S.A. (Switzerland)
• The Coca-Cola Company (U.S.)
• JAB Holding Company (Germany)
• PepsiCo, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENT

March 2025: Another industrial innovation in the iced coffee market in recent years was the introduction of two new ready-to-drink products from the Starbucks company, namely RTD Starbucks Iced Energy and RTD Starbucks Frappuccino Lite, launched. These are the products that are made under the North American Coffee Partnership with PepsiCo using the plant-based caffeine (160 mg) and zero- to low-sugar formulations to fulfill the rising health and convenience standards. The launch helps to know that the key market participants are expanding the iced coffee portfolio to attract the wellness-oriented consumers and expand distribution within the grocery and convenience store networks.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential Applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.