Beverages is an evolution of the iced coffee. Iced coffee is giving way to cold brewing coffee which is made by steeping freshly ground beans in filtered water. Cold brew is prepared at room temperatures by using cold water. Without heating, the extraction of the oil that occurs in the hot brew is eliminated which makes the product sweeter and aromatizing aroma. The consumers are shifting towards cold brewing coffee owing to its smoother, less acidic taste, naturally sweeter, and fruitier flavor. Moreover, the coffee shops are benefiting from inclining consumers interest in premium ready-to-drink coffee, cold brew, albeit pricier, and specialty coffee beverages. Today, more cold brewing coffee filled with nitrogen have entered the market as manufacturers are developing innovative packaging to package the premium coffee beverage. However, despite the fact that cold brew has transformed coffee shops menus coupled with gathered augmented media attention owing to its growing trend, the average consumer is still not highly involved with a cold brew or iced coffee.
Cold Brewing Coffee Market: Drivers and Restraints
Expanding consumer preference for unique coffee beverages, the rise in coffee consumption in developing countries, rapid urbanization, increasing demand for iced coffee, and growing distribution channel by prominent players are some of the primary factors driving the growth of the global cold brewing coffee market. Moreover, rise in consumer awareness for coffee beans, rapidly growing health concern among people, an increase in consumer expenditure on more expensive coffee beverages along with increasing popularity of cold brew are another significant factors expanding the cold brewing coffee market over the forecast period. However, lack of consumer engagement in home cold brew, require twice as many beans to make cold brewing coffee, availability of alternative products such as tea, hot coffee, other beverages coupled with consumers prefer to buy it as occasional treat which may limit the growth of the cold brewing coffee market during the forecast the period.
Cold Brewing Coffee Market: Segmentation
The cold brewing coffee market has been classified by coffee type, beans type, and distribution channel.
Based on beans type, the cold brewing coffee market is segmented into the following:
Based on the distribution channel, the cold brewing coffee market is segmented into the following:
Cold Brewing Coffee Market: Overview
Cold brewing coffee market revenue is expected to grow at a rapid growth rate, over the forecast period. The market is projected to perform well in the near future owing to expanding per capita consumption of coffee, the rise in disposable income, growing popularity of ready-to-drink coffee. Additionally, frequently launch of new products with innovative packaging to attract new customers coupled with companies are adopting innovative marketing strategies to enhance customer base, as well as market presence, are the main factors that can propel the market revenue growth of cold brewing coffee in the near future. Based on distribution channel, retail sales segment is projected to lead the global cold brewing coffee market over the forecast period attributed to increasing demand for ready-to-drink cold brewing coffee. The food service companies and other retailers are demanding to supply coffee in buckets and kegs to avoid additional space due to preparation in labor concentrated in restaurants and cafes.
Cold Brewing Coffee Market: Region-wise Outlook
Depending on the geographic region, the cold brewing coffee market is classified into seven key regions: North America, Eastern Europe, Latin America, Western Europe, Japan, Asia-Pacific excluding Japan, and the Middle East & Africa. Asia-Pacific excluding Japan is expected to be the leading markets in the global cold brewing coffee market followed by Europe owing to changing consumption pattern of the consumer, rise in demand for specialty coffee beverages, and escalating modern retail outlets in the region. Japan cold brewing coffee market is expected to account healthy CAGR during the forecast period owing changing lifestyle, expanding consumer preference for instant coffee drinks premix. Moreover, the market in North America is projected to have the substantial growth in the global cold brewing coffee market over the forecast period due to growing demand for premium coffee, rise in health-conscious consumers. MEA is expected to witness the significant growth rate in the global cold brewing coffee market attributed to expanding worldwide exposure, the rise in the habit of drinking coffee along with accessibility of fresh coffee at an affordable price in the region.
Cold Brewing Coffee Market: Key Players
Some of the prominent players in the cold brewing coffee market are Nestle S.A., Ting Hsin International Group Co. Ltd., The Coca-Cola Company, UCC Ueshima Coffee Co., Ltd., Starbucks Corporation, illycaffe S.p.A, Luigi Lavazza S.p.A., Coffee Roasting Company Schreyögg Srl, Dunkin' Donut, and others. Companies are focus on expanding their product portfolio by offering nitrogen infused coffee beverages to cater to growing consumer demand.