Table of Contents
Overview
New York, NY – April 14, 2025 – The global Iced Coffee Market is poised for significant growth. It is projected to expand from USD 11.1 billion in 2024 to approximately USD 21.4 billion by 2034, reflecting a compound annual growth rate (CAGR) of 6.8% during the forecast period from 2025 to 2034.
This upward trajectory is fueled by evolving consumer preferences, particularly among younger demographics like Gen Z and millennials, who favor convenient, refreshing, and health-conscious beverage options. The increasing demand for ready-to-drink (RTD) and cold brew coffee variants underscores this trend.
Market popularity is further amplified by the proliferation of café culture, digital ordering platforms, and the appeal of aesthetically pleasing, ‘Instagrammable’ drinks. Opportunities abound in developing innovative flavors, sustainable packaging, and functional ingredients to cater to health-conscious consumers.
Key Takeaways
- Iced Coffee Market is expected to be worth around USD 21.4 Bn by 2034, from USD 11.1 Bn in 2024, growing at a CAGR of 6.8%.
- The flavored iced coffee segment emerged as a clear leader within the iced coffee market, accounting for a significant 67.20% share.
- Bottled packaging for iced coffee secured a dominant market position, holding more than a 48.20% share.
- Supermarkets/hypermarkets continued to dominate the iced coffee market distribution channels, capturing more than a 45.20% share.
- North America stands out as a dominant region, capturing a substantial 47.10% market share, which equates to approximately USD 5.2 billion.
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Report Scope
| Market Value (2024) | USD 11.1 Billion |
| Forecast Revenue (2034) | USD 21.4 Billion |
| CAGR (2025-2034) | 6.8% |
| Segments Covered | By Type (Unflavored Iced Coffee, Flavored Iced Coffee, Vanilla, Caramel, Butterscotch, Chocolate, Honey, Others), By Packaging Type (Cans, Bottles, Tetra Packs, Others), By Distribution Channel ( Supermarkets/Hypermarkets, Online, Retail Pharmacies, Specialty Health Stores, Others) |
| Competitive Landscape | Starbucks Corporation, Nestlé, The Coca-Cola Company, UCC Ueshima Coffee Co. Ltd., Stumptown Coffee Roasters, L’OR Coffee, Coffeebean, Jimmy’s Iced Coffee, Arctic Iced Coffee, Javvy Coffee Company, Javo Beverage |
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Key Market Segments
By Type
- In 2024, flavored iced coffee dominated the market, holding a 67.2% share. This leadership stems from growing consumer demand for diverse, exotic flavors and personalized, premium-taste experiences. Companies fueled this trend by expanding their flavor portfolios, solidifying the segment’s strong market position.
By Packaging Type
- Bottled iced coffee led the packaging segment in 2024 with a 48.2% share, driven by its convenience and portability. As fast-paced lifestyles boost demand for grab-and-go options, bottled formats have become a top choice for coffee enthusiasts, reflecting a broader shift toward practical packaging in the beverage sector.
By Distribution Channel
- In 2024, supermarkets and hypermarkets led distribution channels with a 45.2% share. Their widespread presence and ability to offer a diverse range of iced coffee products under one roof make them a go-to destination for consumers, reinforcing their dominance in the market.
Regional Analysis
North America leads with a commanding 47.1% market share, translating to roughly USD 5.2 billion in sales, driven by strong consumer demand and a deeply ingrained coffee culture in the U.S. and Canada. Iced coffee has evolved from a seasonal drink to a year-round favorite.
This surge is propelled by high disposable incomes, widespread coffee shop chains offering diverse iced coffee options, and a rising trend of at-home consumption. Innovations in brewing methods and flavor profiles appeal to a wide audience, from millennials craving artisanal blends to older consumers valuing ready-to-drink convenience.
The market thrives on broad distribution networks, including supermarkets, convenience stores, cafes, and quick-service restaurants, ensuring accessibility across urban and suburban regions. This widespread availability drives consistent consumer engagement and fuels sustained market growth.
Top Use Cases
- Morning Energy Boost: Many people choose iced coffee in the morning to feel more awake and ready for the day. It’s a refreshing way to get caffeine, especially when it’s hot outside. The cool temperature and energizing effect make it a popular choice to start the day.
- On-the-Go Convenience: Iced coffee is often sold in ready-to-drink bottles or cans, making it easy to grab when you’re busy. Whether commuting, working, or studying, people appreciate the convenience of having a quick, cold coffee without waiting in line.
- Social Media Appeal: Iced coffee drinks often look attractive, especially with added flavors or toppings. People enjoy sharing photos of their stylish drinks on social media platforms like Instagram and TikTok. This visual appeal helps make iced coffee a trendy beverage.
- Year-Round Enjoyment: While traditionally a summer drink, iced coffee has become popular throughout the year. Its refreshing taste and the routine of drinking it daily make it a staple for many, regardless of the season.
- Health-Conscious Choices: Some iced coffee options are made with plant-based milks and have less sugar, appealing to health-conscious consumers. These alternatives provide a way to enjoy a favorite beverage while aligning with dietary preferences.
Recent Developments
- Starbucks Corporation: Starbucks recently launched its Summer 2024 menu, featuring new Iced Energy Beverages with coffee fruit extract for an energy boost. The company also expanded its Oleato Iced Coffee line, infusing coffee with olive oil for a creamy texture. Starbucks continues to focus on sustainability.
- Nestlé: Nestlé introduced Nescafé Azera Iced Coffee in recyclable cans across Europe, targeting convenience-seeking consumers. The company also partnered with Brazilian coffee farmers to source sustainable beans for its iced coffee products. Additionally, Nestlé is testing plant-based milk iced coffees under its Nescafé brand.
- The Coca-Cola Company: Coca-Cola expanded its Georgia Iced Coffee line in Japan with new matcha and caramel flavors. The company also launched Fairlife Iced Coffee in the U.S., featuring high-protein, lactose-free cold brew. Coca-Cola is investing in eco-friendly packaging for its RTD (ready-to-drink) iced coffee products.
- UCC Ueshima Coffee Co. Ltd.: UCC launched UCC Black Iced Coffee in a new low-calorie, zero-sugar variant in Japan. The company is also expanding its vending machine network for iced coffee distribution. UCC announced a collaboration with local farmers in Hawaii for premium cold brew beans.
- Stumptown Coffee Roasters: Stumptown introduced Organic Cold Brew Cans with new flavors like Vanilla & Chocolate. The brand is focusing on regenerative agriculture for its coffee sourcing. Stumptown also partnered with Whole Foods for exclusive iced coffee releases in 2024.
Conclusion
The Iced Coffee Market is experiencing robust growth, driven by evolving consumer preferences and lifestyle changes. This growth is fueled by increasing demand for convenient, ready-to-drink beverages, especially among younger demographics seeking refreshing and customizable options. The popularity of cold brew and specialty iced coffee variants is contributing to market expansion, with innovations in flavors and packaging enhancing consumer appeal. Opportunities abound in developing sustainable practices and tapping into emerging markets where café culture is on the rise.
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