Increasing Demand Drives Robust Growth in Cold Brew Coffee Market

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  • Increasing demand for coffee generally has boosted the market for cold brew coffee specifically.
  • Positioning of cold brew coffee under the category of recreational products has proved beneficial in enticing the younger population.
  • Increase in cost of agricultural inputs as well as unpredictable rainfall had led to an increase in the overall cost of coffee beans.

Cold brewing, also known as cold pressing or cold water extraction, is the technique of soaking coffee beans in water at mild or cool temperatures for a protracted period of time. Coarse ground coffee beans are soaked in water for a continued period of time generally more than 12 hours. The water is usually kept at room temperature, although chilled water is also used. Once the coarse grounds are soaked completely, they are separated from the water using a fine metal sieve, coffee filter paper felt or a French press.

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The outcome is a concentrated coffee liquid which is generally diluted with milk or water and is served with ice, blended with ice or other additives such as artificial flavors or chocolate. Also, slow drip cold brew, also termed as Kyoto style cold brew is a process wherein the water is dripped through coarse grounds at room temperature over a long period of time. Since cold brew coffee is prepared with cold water, it is usually mellower and tastes more rounded out making it relatively less acidic.

Since the grounded coffee beans never come into contact with hot water during the cold brewing process, the method of leaching flavor from the beans creates a chemical profile distinct from traditional brewing methods. Coffee beans consist of a large number of constituent parts such as oils, caffeine and fatty acids which are relatively more soluble at high temperatures. Brewing the coffee beans at lower temperatures leads to lower caffeine and lower acidic content when brewed in similar proportions.

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Cold brew coffee is 65 to 70% less acidic when compared to espresso or hot drip coffee. Coffee is the world’s second largest traded commodity and is cultivated across the globe on a large scale. The heavy demand for specialty coffee and instant coffee encourages manufacturers to focus on diversification of products, brand extensions and introduction of new flavors.

Increasing consumer awareness regarding health hazards associated with carbonated drinks is resulting in a shift towards coffee. This is anticipated to drive the overall demand for cold brew coffee across the globe. The key market players are focusing on customizing health beneficial products especially for children and women. Additionally, positioning of cold brew coffee under the category of recreational products has substantiated beneficial in enticing the younger population. Moreover, increase in per capita disposable incomes especially in developing economies is another major aspect triggering the overall growth of the global cold brew coffee market.

However, increase in cost of agricultural inputs as well as unpredictable rainfall had led to an increase in the overall cost of coffee beans thus, making the final product costly. Also, higher costs when compared to hot ground coffee is another major factor hampering the growth of the global cold brew coffee market. Furthermore, old traditional practices such as preference towards hot coffee and hot tea are further projected to hinder the market growth. The varying retail scenario coupled with growing café culture and changing habits associated with flavors and tastes are expected to pose opportunities in the foreseeable years.

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The global cold brew coffee market is segmented on the following bases:

  • Distribution Channel
  • Geography
    • North America
    • Europe
    • Asia-Pacific (APAC)
    • Latin America
    • Middle East & Africa

Key Players Identified for Cold Brew Coffee Market Include but are Not Limited to:

Caffè Nero, Barista Coffee, Coffee Beanery, Caribou Coffee, Doutor Coffee, Coffee Day Enterprises, Ediya Coffee Company, Dutch Bros. Coffee, International Coffee & Tea, Gloria Jean’s Coffees International, Peet’s Coffee & Tea, KKD Corporation and Global Baristas US among other notable players.

This report offers:

  • An overview of the global markets for cold brew coffee market
  • Market trends assessment for the period 2015-2025, with historical information for  2015, and projections through 2025, with respective CAGR during 2017-2025
  • Qualitative assessment tools such as market drivers, challenges and future prospects and market attractiveness by geography
  • Focus on each level of market segmentation based on product approvals, launch, and current and anticipated market dynamics
  • A general overview of the industry structure
  • Company profiles highlighting key information about the major players operating in the cold brew coffee market

Charlie Gefen

Credence Research is a worldwide market research and counseling firm that serves driving organizations, governments, non-legislative associations, and not-for-benefits. We offer our customers some assistance with making enduring enhancements to their execution and understand their most imperative objectives. Over almost a century, we’ve manufactured a firm extraordinarily prepared to this task.

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