January 8, 2025 – In Europe, consumers prefer iced coffee for its refreshing appeal, combining energy and flavor to suit fast-paced, modern lifestyles. Innova’s 360 research into iced coffee market trends highlights market insights, sales trends, flavors, and top brands within the industry.
Iced Coffee Market Product Launch and Sales Trends
Europe is the third leading region for iced coffee market sales value over the past year. With 2 in 5 European consumers eating more at home, café-style iced coffee offers a convenient way to enjoy café-quality beverages in the comfort of their own home. Popular varieties like caffe latte, cappuccino, espresso, macchiato, frappé, and mocha cater to this demand, aligning with Innova’s annual top trend of 2024, ‘Home Kitchen Heroes,’ which highlights the growing preference for elevated home-based experiences that fit evolving lifestyles and budgets.
The iced coffee market has displayed steady growth in launches over the past year. In Europe, 1 in 2 consumers tend to be proactive in preventing health issues. Launches featuring functional benefits, such as energy-boosting yerba maté and guarana, skin-supporting collagen, and low fat or low sugar options for weight-conscious consumers, align with Innova’s other annual top trend of 2024, ‘Prioritizing Prevention.’ This highlights that consumers are increasingly seeking products that cater to their individual well-being needs as part of a proactive strategy to prevent health issues.
Leading Iced Coffee Markets in Europe
The United Kingdom is the top market for iced coffee subcategory launches in Europe over the past five years. This is followed by Germany, Spain, Belgium, and Hungary.
Nearly 1 in 5 consumers in the United Kingdom consider brand as an important product attribute when purchasing iced coffee. This presents opportunities for collaborations between established brands and innovative iced coffee offerings, which can further strengthen consumer appeal and drive market growth.
For example, Jimmy’s Iced Coffee collaborates with Myprotein to deliver protein-enriched iced coffee, catering to health-conscious consumers. Similarly, Arla partners with Starbucks to offer a range of milk drinks made with premium Arabica coffee. These collaborations and innovations highlight how established brands can tap into consumer demand for quality and variety in iced coffee options.
Top Brands and Companies
Nestlé leads iced coffee launches in Europe. 27% of consumers in the region prioritize variety and novelty in their choices. This preference drives increased consumption as Nestlé offers diverse products, from coffee drinks in aluminum cans to soluble instant coffee powder mixes. Additionally, Barista-style selections, including latte, Americano and cappuccino further align with consumer interests, ensuring sustained appeal.
Arla, Emmi, Nestlé Nespresso, and Lidl are other key players in the market. These top 5 companies account for a total 30% of iced coffee subcategory launches tracked in Europe.
Claims and Positionings Trends
The top claim is lactose-free, followed by vegetarian, no added sugar, vegan, and limited edition. 64% of consumers in Europe consider inclusivity an important value in their diet. This is reflected in the top positionings in the subcategory, including lactose-free, vegetarian, and vegan.
Iced coffee trends research shows different claim preferences across Europe. In the United Kingdom, low/no/reduced fat, no additives or preservatives, and low/no/reduced calorie claims are on the rise. Spanish consumers are inclined toward low/no/reduced fat and gluten-free claims. In Germany, low/no/reduced fat, gluten free, and reduced sugar claims are growing. Consumers in Hungary prefer low/no/reduced fat, plant-based, and organic claims. Meanwhile, in Belgium, plant-based and gluten-free claims are gaining popularity.
Iced Coffee Flavor Trends
Caramel, vanilla, salted caramel, milk chocolate, and hazelnut are the top 5 flavors for iced coffee subcategory launches in Europe.
In Europe, iced coffee trends show that consumers are looking for more sweet flavors in iced coffee, launches featuring a wide range of sweet flavors boost new product development. Brown flavors such as chocolate and caramel, vanilla-flavored choices, preparations with nuts like hazelnut and almond, and fruits, as well as cross-category-inspired selections, are driving the innovation in iced coffee across Europe.
What’s Next in Iced Coffee Market Trends?
In Europe, 1 in 2 consumers are willing to try plant-based versions of familiar food and beverages, boosting growth in the iced coffee market. Brands are tapping into this interest by using oats, soy, almonds, and barley to create plant-based iced coffee in popular flavors like caramel and vanilla. These offerings align with iced coffee trends and Innova’s annual top trend of 2024, ‘Plant-Based: The Rise of Applied Offerings,’ as familiar formats provide comfort and clarity, encouraging consumers to explore plant-based alternatives.
Notably, 35% of consumers in Europe believe that natural ingredients are important for healthy food and beverages. Brands can focus on clean label claims such as natural, organic, and no additives or preservatives, which could appeal to health-conscious consumers by providing transparency. These labels help consumers make more informed choices.
Inclusivity in diets is also on the rise in the iced coffee market, as reflected in lactose-free, vegetarian, and vegan iced coffee options. Lactose-free products are leading in the market, leveraging plant-based milk alternatives and lactase enzymes to meet diverse preferences. As consumers continue to embrace sustainability and health, brands have an opportunity to innovate further, creating plant-based iced coffee that combines indulgence, functionality, and inclusivity.
This article is based on Innova’s Overview in Overview in Overview in Iced Coffee in Europe report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
