Iced Coffee Market Expected to Hit USD 10.08 Billion by 2032, Reported by Coherent Market Insights

Iced Coffee Market is estimated to be valued at USD 6.12 Bn in 2025 and is expected to reach USD 10.08 Bn by 2032, exhibiting a (CAGR) of 7.4% from 2025 to 2032

BURLINGAME, CA, UNITED STATES, November 17, 2025 /EINPresswire.com/ -- The Global Iced Coffee Market is estimated to be valued at USD 6.12 Bn in 2025 and is expected to reach USD 10.08 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 7.4% from 2025 to 2032. Current iced coffee market trends show strong momentum toward health-focused and premium offerings, with growing demand for organic, low-calorie, and plant-based options. Additionally, advancements in packaging and distribution—such as convenient grab-and-go formats and expanding e-commerce availability—are further boosting product accessibility.

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Global Iced Coffee Market Key Takeaways

Ready-to-drink (RTD) iced coffee is anticipated to remain the top-selling product type, accounting for a market revenue share of 38.5% by 2025.

Iced coffee cans are expected to be the most popular type among consumers, capturing 34.7% of the market share in 2025.

Based on distribution channel, online retail segment is forecast to account for 54.6% of the global iced coffee market share by 2025.

Asia Pacific, with an estimated market share of 34.8% in 2025, is projected to dominate the global iced coffee industry.

Asia Pacific is poised to emerge as a highly lucrative pocket for iced coffee market companies during the forecast period.

Consumer Preference for Convenience Driving Iced Coffee Market Growth

Coherent Market Insights’ latest iced coffee market analysis provides insights into key factors fueling industry growth. Rising consumer preference for convenience and on-the-go consumption is one such primary growth driver.

The busy lifestyles of modern consumers are pushing them towards ready-to-drink options. This, in turn, is putting iced coffee into the spotlight.

Iced coffee, sold in cans and bottles, offers a quick and easy solution that eliminates the need for preparation. This convenience is acting as a catalyst for driving sales of iced coffee, and the trend will likely persist during the forecast period.

High Cost and Alternative Beverages Limiting Market Growth

The global iced coffee market outlook looks promising due to rising consumer demand for on-the-go beverages. However, high costs and rising adoption of alternative beverages might limit market growth to some extent during the forthcoming period.

RTD iced coffee and specialty café versions are quite expensive compared to alternatives like teas or carbonated drinks. This can discourage frequent purchases, leading to reduced iced coffee market demand.

In addition, there is a rising popularity of functional beverages, energy drinks, iced teas, and smoothies that are marketed as healthier and more energizing. This could also slow down iced coffee market growth during the forthcoming period.

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Rising Cold Coffee Popularity Among Younger Consumers Unlocking Growth Prospects

Millennials and Gen Z are at the forefront of the iced coffee revolution. These younger consumers show a strong preference for cold coffee beverages over traditional hot coffee. They value drinks that are refreshing as well as visually appealing (Instagrammable), making cold coffee an attractive choice. This growing preference is expected to create lucrative growth opportunities for iced coffee manufacturers during the assessment period.

Emerging Iced Coffee Market Trends

Growing coffee culture is a key trend in the iced coffee market. Rise of cafes and specialty coffee shops is making iced coffee more popular and common. These places are turning iced coffee into a year-round drink instead of just a seasonal option.

Rising demand for ready-to-drink (RTD) formats is expected to boost growth of the iced coffee market during the forthcoming period. Consumers increasingly prefer RTD iced coffee because it provides a convenient grab-and-go option that fits seamlessly into busy lifestyles.

Ongoing product innovations will likely support market expansion. Companies are creating new variants like cold brew, nitro, flavored, and low-sugar options. These innovations are expected to woo more and more consumers towards iced coffee.

Fortification trend is also providing a strong impetus for the iced coffee market growth. Leading manufacturers of iced coffee are infusing their products with functional ingredients like proteins, adaptogens, probiotics, prebiotics, and vitamins.

Sustainability is taking center stage when it comes to iced coffee packaging. Companies are using recyclable and biodegradable packaging formats to woo more and more eco-conscious customers.

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Competitor Insights

Key companies in the iced coffee market report:

Nestlé S.A.
Starbucks Corporation
The Coca-Cola Company
Dunkin' Brands
Peet's Coffee
Keurig Dr Pepper Inc.
Smucker Company
Lavazza
Brewed Coffee Company
Kraft Heinz Company
Illycaffè S.p.A.
Blue Bottle Coffee
Califia Farms
Chobani LLC
International Coffee & Tea, LLC

Key Developments

In September 2025, Bulletproof expanded its product portfolio with the launch of High Protein Iced Coffee. This new instant coffee blend is created to meet demands of today’s busy, health-minded consumers.

In April 2025, Nestle launched Nescafe Espresso Concentrated range in Europe. The new cold-coffee line allows consumers to craft barista-style iced coffee right from the comfort of their own homes.

Raj Shah
Coherent Market Insights Pvt. Ltd.
+1 252-477-1362
email us here

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