Surging Cold Brew: Here to Stay
9/5/2024
As most of us continue to “live on the go”, and many have returned to the office at least on a
part-time basis, the popularity of cold brew coffee continues to grow. The cold brew process
extracts coffee at a lower temperature and for a longer period of time than it’s hot water
counterpart, and as a result, creates a unique sensory and quality experience for the consumer.
As consumers continue to demand memorable experiences, variety and personalization in their
food and beverage rituals, providers and operators are filling these needs through product
extensions like cold brew lattes, and cold brew infused flavors like vanilla, lavender and
cinnamon. The addition of a meringue-like cold foam topper has also enhanced this trend. Even
by 2020, the National Coffee Association’s Coffee Data Trends Report showed that 1 in 5
consumers under the age of 40 had consumed at least one cold brew coffee beverage during
the week prior to the survey. These numbers have continued to grow over the past few years
for reasons including the fact that cold coffee travels better that hot coffee, and that rising global
temperatures due to climate change have been driving customers to seek out cold coffee and
other cold beverages throughout all seasons of the year.
Starbucks reports that cold brew coffee beverages are particularly popular with Gen Z
consumers. This group also continues to be focused on sustainability initiatives such as “coffee
with a cause” and associations like the ongoing Rainforest Alliance. Cold brew can be found in
retailers, convenience stores, vending and self-checkout marketplaces, as well as sporting
venues and other entertainment outlets. Consumers for cold brew tend to skew more male than
female, and tend to fall in the Gen Z and Millennial categories, as 24% of Gen Z and 27% of
Millennial consumers respectively had consumed at least one cold brew beverage within the two
months prior to when the survey was given. Cold brew tends to be viewed as more of a “pick me
up” beverage (versus a dessert or snack item), and is generally consumed throughout the day
versus just being thought of as a “morning” beverage. Due to this ongoing popularity, brands
like Caribou, Peet’s, Tim Horton’s, 7-Eleven, Wawa, and Bigby have created specific cold brew
options under their respective brands and locations. Cold brew is certainly not a passing fad as
consumers will continue to look to this product for both a caffeine fix and an experience to
highlight their day.