Once a seasonal treat, cold coffee is now a year-round habit and growing fast. U.S. consumers spent $17.7 billion on cold coffee in 2023, more than double the $8.5 billion spent in 2016. This includes iced coffee, cold brew, and frozen blended drinks. At Starbucks, cold beverages now make up about 75% of all beverage sales, a huge leap from just 37% in 2013. In fact, in 2020 Starbucks sold over 90 million Pumpkin Cream Cold Brews, outselling its iconic hot Pumpkin Spice Latte. Across the industry, cold drinks are outpacing hot drinks. Starbucks noted its cold beverage sales grew 8% last quarter, versus only 2% growth for hot drinks, as cold options boost business throughout all day parts.

This cold coffee boom isn’t limited to specialty cafés. Fast casual and quick-service restaurants (QSRs) are riding the trend, introducing cold coffee programs to drive traffic and sales. Dunkin’, long known for iced coffee, has leaned into creative iced drinks (e.g. the Brown Sugar Cream Cold Brew and “Shakin’ Espresso” LTOs). Panera Bread even launched an unlimited coffee subscription (including iced coffee) highlighting just how central iced beverages have become to its breakfast strategy.

Gen Z, Millennials and the Year-Round Iced Coffee Culture

Why the chilly change? Younger consumers are the driving force. Millennials and Gen Z have made iced lattes, cold brew, and frozen coffee part of their daily lives, regardless of season. More than half of Gen Z consumers (57%) say the first coffee they drank regularly was cold, not hot. Many Gen Zers start drinking coffee in their early teens (some as young as 14), and they gravitate toward cold brew and iced espresso drinks over traditional drip . In fact, about 75% of all cold coffee buyers are under the age of 35.

Broader surveys confirm the trend. Allegra Project Café USA 2024 found that a whopping 79% of consumers under 35 purchase an iced coffee at least once a week, and daily cold coffee consumption jumped 7% year-over-year. And it’s not just availability, it’s preference. Starbucks’ leadership noted a “generational taste preference” shift, where young customers drink cold coffee every day, much as older generations drank a hot morning cup daily.

Iced Coffee Segments on the Rise

Cold Brew Coffee: Explosive growth in popularity, consumption up ~20% year-over-year in recent years. The global cold brew market grew 22.1% from 2023 to 2024 (to $3.16 billion) , far outpacing overall coffee growth. Cold brew now accounts for 21% of U.S. non-espresso coffee orders.

Iced Espresso Drinks: Huge growth thanks to lattes, cappuccinos, and new concoctions. Lattes are the most popular espresso-based beverage in the U.S., enjoyed by 18% of adults weekly. A large portion of these are iced. Overall, espresso-based drink consumption is up ~48% in recent years among younger consumers.

Frozen/ Blended Coffee: The frappé/frappuccino category remains strong. Frozen blended coffee is the 2nd most popular non-espresso coffee (after cold brew) at 19%. While growth is more modest, these indulgent cold coffees attract an afternoon dessert crowd.

RTD Iced Coffee: The Ready-to-Drink (RTD) coffee category, including bottled and canned coffees, is growing rapidly alongside fresh cold brew. The RTD coffee market is growing faster than the overall coffee industry, projected to reach $43 billion by 2028 and $64 billion by 2032, growing at 8–10% CAGR. Millennials and Gen Z favor RTDs for convenience, driving innovations like canned nitro lattes, cold brew cartons, and even spiked cold brew.

A Colder Future for Coffee

What started as a niche hipster trend is now a global staple, fueling menu innovation and new business models across the U.S. and beyond. If you’re looking to scale your cold coffee program with high-quality cold brew concentrate, perfect for cold brews, iced lattes, and beyond, we’re here to help.

Learn more about how Canopy Point Coffee can support your menu.

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