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The cold brew coffee market is estimated to grow by USD 439.93 million at a CAGR of 7.73% between 2022 and 2027. Market growth hinges on various factors, notably the rising favorability of instant coffee among millennials coupled with frequent product launches, the expansion of organized retailing networks globally, and the perceived health advantages. However, the market faces hurdles such as the increasing demand for substitute products, obstacles in distribution, and potential health concerns associated with caffeine consumption.
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The market share growth by the arabica-based cold brewed coffee segment will be significant during the forecast period. Arabica Coffea is the most widely cultivated type worldwide as arabica beans have a unique taste that ranges from sweet-soft to sharp-tangy. Arabica beans have a relatively lower caffeine content than robusta beans and are ideal for preparing the beverage; also, the beans are highly preferred by consumers due to their better quality. In 2020, the Arabica-based segment of the market emerged as the dominant product segment.
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The arabica-based segment was valued at USD 504.22 million in 2017 and continue to grow by 2021. Over the same period, the global arabica-based market was moderately fragmented due to the presence of numerous regional and a few global companies. Factors such as the growing presence of organized retailing outlets that offer Arabica-based beverage and the increasing frequency of new product launches featuring the same are estimated to drive the growth of the Arabica-based segment during the forecast period.
Coffee distribution channels have witnessed significant development, reflecting the growing popularity of this beverage. In Italy, for example, supermarkets, hypermarkets, and convenience stores play a vital role in enhancing the availability and awareness. In Thailand, investments in various distribution channels, including convenience stores, cater to the preferences of customers seeking ready-to-drink options. Some brands, like Secret Squirrel, have invested in brewing and concentrate distribution, offering a variety of flavors. This study highlights the importance of diverse channels, such as hypermarkets and convenience stores, in reaching people and expanding the reach to a broader consumer base.
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North America is estimated to contribute 59% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The demand is high in the US and Canada, owing to the prevailing preference in these countries. North America is the largest market in the world in terms of products. In 2022, the market in North America was moderately fragmented due to the presence of a large number of regional and a reasonable number of global companies. The US is the largest country-specific market for the products as it accounted for the highest revenue share of the market, which will drive the growth of the market in the region during the forecast period.
The market is experiencing significant growth, driven by several key factors. Firstly, the growing popularity of live chat and instant messaging platforms facilitates direct communication between enthusiasts and brands, fostering engagement and loyalty. This trend aligns with the rising demand for web and mobile self-services, reflecting consumers' preference for convenient purchasing options in the e-commerce sector. Additionally, the integration of social media enables companies to reach wider audiences and enhance their online presence, further fueling revenue generation.
Moreover, the increasing population, particularly millennials, contributes to the expanding consumer base. As online shopping questions surge, businesses leverage customer relationship management (CRM) strategies to tailor their offerings and enhance the customer experience. The deployment of interactive chatbots by helpdesk teams provides instant assistance, catering to the needs of first-time website visitors, existing users, and returning customers alike. This real-time communication, coupled with advanced live chat software and customer messaging platforms, enhances user engagement and overall satisfaction, driving growth in the market.
The surging popularity of instant coffee among millennials and the continuous introduction of new products are pivotal drivers propelling market growth. Millennials wield considerable spending power, surpassing that of Baby Boomers, with expectations for further increases in the coming years. Notably, it has garnered increasing favor among millennials, particularly flavored instant variants. In response, companies are innovating and launching new products tailored to cater to the preferences of the millennial demographic.
For instance, Starbucks has rolled out three new offerings under its Cold Craft range in recent years, including Starbucks Nitro, Vanilla Sweet Cream, and Cappuccino Freddo. In markets like China, instant coffee, including cold brew variants, has witnessed a surge in popularity among millennials. With such consumer trends and preferences shaping the market landscape, the segment is poised for significant growth in the foreseeable future.
The rising number of mergers and acquisitions as well as the opening of new chains will fuel the market growth and trends. Several companies in the market are carrying out mergers and acquisitions (M&A) to expand their product portfolios for coffee and also to enter into the emerging RTD segment as well as the market. Large players acquire smaller players to gain access to new products at lower costs.
Successful mergers and acquisitions increase the market share of the company in the global market. Moreover, companies are expanding their business operations by opening new chains domestically as well as locally. As a result of these M&A, the companies can increase both their market share and presence. Many large companies are expected to acquire smaller and regional suppliers during the forecast period.
The market is thriving, fueled by a diverse array of flavors that cater to evolving consumer preferences. Flavors play a pivotal role in attracting customers seeking a refreshing and unique experience. From classic options to innovative blends, the market emphasizes a variety of tastes, enhancing its appeal among coffee enthusiasts. The availability of different flavors, ranging from traditional to exotic, has contributed to the widespread popularity. As a result, the market continues to flourish, driven by the dynamic and flavorful options offered by various brands and establishments.
The surging demand for substitute products is a major challenge to the growth. Over the last three decades, other hot beverages such as RTD coffees like frappuccino, mocha, espresso drinks, roast and ground coffee, soft drinks, carbonated drinks, nutritional and energy drinks, green tea, iced tea, pods, iced, and have grown in popularity and emerged as a major challenge for the market. Also, the advent of energy drinks such as Stokely-Van Camp Gatorade and RED BULL has adversely affected consumption.
Factors such as the rising demand and the increasing number of companies offering various innovative flavors of iced tea, green tea, and organic tea are expected to hinder the growth of the market. Other influencing factors, such as the surging demand and the emergence of several cafes worldwide that offer variants like frappe and other RTD products, have further enhanced the threat to the market.
The market trends and analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Canterburycoffee - The company offers Cold Brew coffee in the form of Do It Yourself style with various grinding sizes of coffee. Also, the company offers coffee in various flavors and packet sizes.
The market growth analysis report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market growth and forecasting report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market encompasses the global industry dedicated to producing and consuming cold brewed coffee, a beverage crafted by steeping coffee grounds in cold water for an extended period. This method yields a smooth and less acidic taste compared to traditional hot brewed coffee. In recent years, the market has experienced significant growth fueled by increasing consumer preference for alternative brewing methods. Major players in this market range from established coffee brands to small-scale specialty coffee roasters, catering to diverse consumer preferences.
Cold brew coffee's appeal extends beyond cafes and restaurants, with many consumers opting to prepare it at home using dedicated cold brewing systems or simple DIY methods. The market is projected to reach a value of USD 1.8 billion by 2024, with millennials accounting for approximately 40% of its consumer base. Notably, canned cold brew coffee consumption has surged by 55% in the past year alone. Geographically, the United States dominates the market, commanding 65% of its global share. Over the last five years, cold brew coffee sales have grown by an average of 20% annually. With its unique flavor profile and increasing consumer demand, market presents lucrative opportunities for both established players and emerging entrants in the beverage industry.
Furthermore, the market refers to the global industry surrounding the production and consumption of cold brewed coffee, cold brew is made by steeping coffee grounds in cold water for an extended period resulting in a smooth and less acidic taste, the cold brew coffee market has experienced significant growth in recent years due to increasing consumer preference for alternative brewing methods, major players in the cold brew coffee market include established coffee brands as well as smallscale specialty coffee roasters, the popularity of cold brew coffee is not limited to cafes and restaurants many consumers also enjoy making it at home using dedicated cold brewing systems or simple diy methods, the global cold brew coffee market is projected to reach a value of billion by, approximately of millennials prefer cold brew coffee over traditional hot brewed coffee, the consumption of canned cold brew coffee has increased by in the past year, the United States accounts for of the market share, cold brew coffee sales have grown by an average of annually over the last five years.
Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.73% |
Market growth 2023-2027 |
USD 439.93 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.23 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 59% |
Key countries |
US, Japan, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Califia Farms LLC, Canterburry Coffee Corp., Gambino Coffee, Gradys Cold Brew, Heartland Food Products Group LLC, HighBrewCoffee, Kohana Coffee, La Colombe Torrefaction Inc., Lucky Jack Coffee, RISEANDSHINE CORP., Rombouts Coffee GB Ltd, Sleepy Owl Coffee Pvt. Ltd., Starbucks Co., Station Cold Brew, The Coca Cola Co., The Kind Coffee Co., Venice Cold Brew, Wandering Bear Inc., and Nestle SA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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