A report by Grand View Research* states that the global cold brew coffee market size is forecasted to grow at a CAGR of 25.1% from 2019 to 2025, having been valued at $339.7 million in 2018. While originally intended as an exclusive beverage in the foodservice industry, the popularity of handcrafted and premium cold brew products opened growth opportunities for the global market.
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 and 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 of cold brew products.
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.
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.