January 7, 2025 – In the US and Canada, iced coffee is popular for its refreshing appeal, versatile flavor options, and ability to provide a satisfying energy boost, aligning with modern lifestyles and evolving taste preferences. Innova’s 360 research into iced coffee trends highlights new product launches, leading markets, top companies, and brands in the market.
Iced Coffee Product Launch and Sales Trends
North America is the second leading region for iced coffee market sales value globally in the past year. Consumers in the US and Canada have increased their consumption of iced coffee with rising availability and novelty. Product offerings such as frappes, lattes, espressos, and cappuccinos, available in single-serve pods, sachets, and concentrates, have supported the launches.
There has been a 2% rise in iced coffee subcategory launches within the soft drinks category in the US and Canada, reflecting growth in the iced coffee market. Consumers express a preference for cold brew coffee, accounting for 34% of iced coffee launches, with options like black brews, maca root blends, cocoa-infused, and nitro varieties pushing product development.
More than 1 in 3 consumers in the US and Canada are willing to try familiar versions of plant-based food and beverages. Reflecting this, vegan and plant-based claims are prevalent in the subcategory. Plant-based milks made from oats, almonds, cashews, and walnuts are increasingly replacing traditional dairy, delivering creamy, barista-style textures and familiar flavors like vanilla and spices. This aligns with the Innova’s annual top trend of 2024, ‘Plant-Based: The Rise of Applied Offerings,’ where adapting familiar dishes and formats can help make plant-based products more accessible and appealing to a broader consumer base.
Leading Iced Coffee Markets
The US is the leading country for iced coffee launches, highlighting its dominance in the iced coffee market. 40% of consumers in the US are open to exploring new global cuisines. Brands are introducing single-origin coffee beans from Ethiopia and Brazil, alongside Vietnamese-style coffee lattes, to cater to diverse preferences. Options like French vanilla, Irish cream, and sweet Americano variants also resonate with consumer tastes. This aligns with Innova’s other annual top trend of 2024, ‘Local Goes Global,’ where consumers embrace familiar, yet authentic flavors inspired by global regions.
Top Companies and Brands
North American Coffee Partnership is the top company for iced coffee subcategory launches. In the US and Canada, 31% of consumers are turning to iced coffee for an energy boost. To meet this demand, 40% of the company’s launches feature energy or alertness claims, fortified with energy-boosting ingredients like guarana and ginseng. Expanding offerings with B vitamins and protein could add health benefits, aligning with consumers’ proactive wellness goals. This reflects Innova’s annual top trend of 2024, ‘Prioritizing Prevention,’ where consumers are increasingly adopting a proactive approach to health, prioritizing products that support their wellness goals.
Nestle, Chameleon Cold-Brew, Califia Farms, and La Colombe Coffee are other key players in the market. Iced coffee trends research shows that these top 5 companies show 22% of iced coffee subcategory launches in the US and Canada.
Claims and Positionings Trends
Iced coffee trends show that gluten-free is the top claim in iced coffee subcategory launches in the US and Canada. This is followed by indulgent and premium, vegan, GMO-free, and organic.
Nearly 1 in 3 consumers in the US and Canada are attracted to indulgent offerings. By catering to this preference, iced coffee selections with ice cream, cake and cookie choices, and offerings in decadent chocolate and nut flavors remain attractive in the market.
Apart from the top 5 claims, limited edition, plant-based, energy/alertness, traditional, and high/source of protein claims are growing strongly in the space.
Iced Coffee Flavor Trends
Iced coffee trends show that caramel, vanilla, milk chocolate, peppermint, and spiced pumpkin are the top 5 flavors in the market. More than 1 in 2 consumers in the US and Canada prioritize taste and flavor in their iced coffee choices. To cater to this preference, diverse brown flavors such as caramel, salted caramel, milk chocolate, and peanut butter, as well as dessert-inspired choices and fruit selections, might appeal to consumers.
Notably, 52% of consumers favor familiar flavors. In line with this, classic vanilla choices, nutty options like hazelnut and pistachio, as well as cinnamon flavors have pushed the new product development.
What’s Next in the Iced Coffee Trends?
Iced coffee trends highlight that value and volume growth averages at 8% and 6%, respectively, over the past five years. Consumer preferences in the US and Canada are leaning toward lighter and more subtle flavors. To cater to this demand, brands can offer light roast variants offering delicate tones and medium roasts balancing acidity and sweetness with nutty and chocolate notes.
The US leads the global iced coffee market, accounting for 90% of launches. In the US, there is a growing interest in global flavors and cuisines. Brands can introduce single-origin coffees and authentic recipes to meet the desire for distinctive taste experiences.
Consumers continue to prioritize taste, encouraging innovation with flavors. They can explore flavors such as hazelnut, salted caramel, French vanilla, and coconut. Brands combining flavor exploration with functional benefits are likely to capture the growing consumer demand for taste and wellness.
This article is based on Innova’s Overview in Iced Coffee in the US & Canada report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
