Cold Brew Coffee Sales: Why the Cold Brew Coffee Market is Hot

Cold brew coffee sales are up, and they’re not slowing down! Learn more about the cold brew coffee market size and how to break into the business.

Iced Coffee History

It may come as a surprise, but iced coffee’s origin dates as far back as 1840 in Algeria. Originally called mazagran – due to its inception during the Battle of Mazagran – the French military had run out of milk and improvised by substituting water in their coffee. To beat the heat, the soldiers opted to drink their coffee cold. And iced coffee was born!

But when did iced coffee become popular? Even with its early start, iced coffee didn’t become truly mainstream until the 1920s. Traditionally, iced coffee is drip-brewed coffee poured over ice to cool. Cold brew is a bit different, where coffee grounds are steeped in cold water for a long period of time – up to 16 hours. The cold brew coffee trend didn’t really hit the U.S. until the 90s. But it took for larger coffee brands like Starbucks and Dunkin’ to make it mainstream in the 2010s.

So, What Makes Cold Brew Better?

Due to the longer and colder brewing process, cold brew is favored because it’s stronger, sweeter, smoother, and less acidic. When hot coffee is chilled quickly, it releases acids, which can cause drinkers to have upset stomachs or acid reflux later. Plus, when hot coffee is cooled rapidly, it can have a bitter taste to it. With cold brew, both of those instances are eliminated. Additionally, since the coffee is brewed over hours instead of minutes (like hot coffee), more of the caffeine is derived from the beans, making it a much bolder cup.

With many large coffee franchises offering cold brew, entrepreneurs can capitalize on the trend. According to our coffee industry analysis, the coffee market is only growing – making now an ideal time to invest and grow alongside the market. Cold brew especially has been gaining popularity for years. The cold brew coffee market was valued at $470.08 million in 2022. Expected to almost double by 2025, cold brew coffee sales will grow to a value of $944.16 million.

Tap Into the Cold Brew Coffee Market

If you want to take advantage of the growing cold brew coffee sales, there are a few steps you’ll need to take before starting your own coffee shop:

1. Research the market: Understand the current landscape of the cold brew trend, including consumer preferences, competitor analysis, and potential opportunities to differentiate your business and product.
2. Develop a unique offering: Have your product stand out by experimenting with different coffee beans, flavor profiles, and brewing techniques. Consider offering a range of options to cater to different tastes and preferences.
3. Focus on quality: Ensure that your cold brew coffee meets high-quality standards. Source premium coffee beans, pay attention to the brewing process, and maintain consistency in taste.
4. Establish distribution channels: Determine the most effective ways to reach your target audience. This may include opening a dedicated coffee shop, partnering with existing retailers, or exploring online sales and delivery options.
5. Build brand awareness: Invest in marketing and advertising efforts to create brand recognition and attract customers. Utilize social media platforms, local events, and collaborations to promote your brand and boost your cold brew coffee sales.
6. Provide excellent customer service: Train your staff to provide a positive and memorable experience for every customer. Friendly and knowledgeable service can enhance customer satisfaction and loyalty.
7. Stay adaptable and innovative: Continuously monitor market trends and consumer preferences. Adapt your offerings, introduce new flavors or formats, and respond to customer feedback to stay ahead of the competition.
8. Consider joining a franchise: If the above steps seem somewhat daunting, there’s always the option of investing in an established coffee franchise. A reputable franchisor has already done the hard work and research required to have a strong product. As a franchisee, you get to reap the benefit of their expertise to grow your business. Plus, you’ll receive thorough training and ongoing support, giving you a greater chance of success.

Even if you do choose to go the franchise route, extensive research is still needed. You’ll want to understand the different opportunities available to you and which brand best aligns with your values and goals. Be sure to seek the advice of a franchise attorney before signing an agreement.

Franchise with Scooter’s Coffee

Scooter’s Coffee is a rapidly growing coffee franchise with over 600 locations across the U.S. Our 664-square-foot drive-thru kiosks offer a diverse range of drinks and food products including teas, smoothies, blenders, hot drinks, iced coffees, and cold brew.

We got our start in 1998 and began franchising our concept in 2001. Since then, we’ve grown to be one of the leading coffee franchises in the industry. This year Scooter’s Coffee ranked No. 59 on Entrepreneur magazine’s Franchise 500 and was ranked No. 16 on the publication’s Fastest-Growing Franchises list.

We have available franchise territories nationwide and are looking for driven entrepreneurs to join our booming franchise. Interested franchise candidates are required to have a net worth of $500,000 and at least $200,000 in liquidity to be considered for our opportunity.

Initial investment costs to own a Scooter’s Coffee franchise location range between $797,000 and $1,341,500, including our $40,000 franchise fee. We also offer a veteran’s incentive to qualified candidates consisting of a $20,000 credit toward their location’s first year of product.

To learn more about our franchise opportunity, request information via our form, and one of our franchise development representatives will be in touch with you soon.