Rising Trends: Cold Coffee Consumers Shifting to Home Brews Amid Price Surge in Cafes

As consumer preferences evolve, a noticeable shift is underway in the market for iced coffee, with more individuals opting for home-brewed solutions over costly cafe purchases. Darren Seifer, a food and beverage analyst at Circana, highlights a significant increase in cold coffee orders at cafes and restaurants, driving up costs for consumers.

Recent data indicates that U.S. consumers are now paying an average of $3.08 for regular coffee, $5.14 for cold brew, and $5.46 for a latte. This uptick in prices has led many to seek more economical options elsewhere. Major coffee chains like Starbucks have raised prices, particularly on premium cold drinks, adding pressure on consumers.

Recognizing the changing landscape, major brands like Nescafé and Keurig are catering to the trend of home brewing cold coffee. Nescafé recently introduced a cold-liquid-dissolvable coffee product, offering a cost-effective solution for coffee enthusiasts. Similarly, Keurig is set to launch the ‘K-Brew+Chill’ machine, targeting at-home iced coffee lovers.

Josh Hulett, Keurig’s senior vice president of product management, views this shift as an opportunity to bring cafe-style beverages into consumers’ homes. The pandemic-induced rise in home brewing has further fueled this demand for convenient and affordable coffee solutions.

Local coffee retailers like Buddy Brew Coffee have witnessed a surge in demand for their grocery products, available at outlets like Whole Foods and Publix. Despite a recent price increase, Buddy Brew’s retail offerings remain popular due to their competitive pricing and quality.