Cold Brew Tea and Coffee: Market Overview and Innovation Trends

Cold brew tea and coffee have experienced significant growth in recent years. Let’s explore the market size and innovative trends in this segment.

Table of Contents

Introduction

Cold brew is a slow brewing method for tea and coffee that creates a lighter, more delicate flavor than the traditional hot brewing. From a brewing technique, it has evolved into a premium beverage category that is gaining strong attention from consumers. As demand grows globally, both cold brew tea and coffee are seeing rapid innovation across flavors, formats, and functions. In this article, we will explore what cold brew is, how the market is expanding, and the biggest trends shaping its future.

What is cold brew?

Cold brew is a brewing method that is popular with coffee and tea. With cold brew, coffee grounds or tea leaves are steeped in cold or room-temperature water for an extended period, typically 8 to 24 hours. Unlike quickly brewing with hot water, this slow extraction process changes the chemistry of the beverage, resulting in a milder flavor, lower acidity, and a naturally sweeter taste.

Cold brew tea: Cold brew is especially well-suited for green, white, herbal, and floral teas, which can become bitter when brewed with boiling water. The gentle extraction allows for a more delicate aroma, making it a popular choice for refreshing, clean drinks.
Cold brew coffee: Cold brew coffee is made by steeping coarsely ground beans in cold water, usually for 12-18 hours. This process reduces bitterness and results in a smoother mouthfeel compared to hot-brewed or iced coffee.

Key differences between cold brew and iced beverages

It is important to note that Cold brew tea and coffee is not the same as iced tea or iced coffee. Iced drinks are typically brewed hot and then chilled or served over ice. Cold brew, on the other hand, never comes into contact with heat, resulting in a smoother, less acidic, and more aromatic flavor. Additionally, this method can preserve more natural compounds in coffee and tea, resulting in higher antioxidant levels and unique flavor notes.

cold brew tea and coffee (1) — Cold brew tea

Market overview and growth

The global cold brew market has grown from a niche category into one of the most dynamic segments of the beverage industry. The current market is mainly focused on two main categories: cold brew coffee and cold brew tea. The growth of the cold brew market is driven by several factors, such as health consciousness, convenience, and premium positioning.

Cold brew coffee market

The cold brew coffee market is experiencing remarkable growth. According to Fortune Business Insights, the market size is valued at $3.16 billion in 2024 and projected to reach $16.22 billion by 2032, with a CAGR of 22.71% during the forecast period. North America, especially the U.S., remains the largest consumer market, with strong contributions from large café chains like Starbucks, local roasters, and bottled RTD brands.

Cold brew tea market

Although smaller in scale than coffee, cold brew tea is growing rapidly thanks to the rise in functional beverages, herbal infusions, and demand for low-caffeine and clean-label options. The cold brew tea market revenue was valued at $1.2 billion in 2024 and is estimated to reach $2.5 billion by 2033, growing at a CAGR of 8.5% from 2026 to 2033, according to Verified Market Reports. Cold brew tea is especially popular in regions like Japan, where cold tea has long been part of the culture, and in Western markets, where ready-to-drink wellness beverages are experiencing rapid growth.

Market growth drivers

Health consciousness is a key driver behind the trend, as consumers seek healthier drink options compared to traditional sugary or heavily processed beverages. Cold brew coffee is considered healthier due to its lower acidity, less bitterness, and fewer additives. This helps increase the sales of cold brew coffee and tea in the market.

Cold brew beverages are often positioned as premium. Consumers are willing to pay more for products that are handcrafted, produced in small batches, or have a single ingredient that delivers a unique flavor experience. Their expansion into specialty cafes and high-end stores has also contributed significantly to this growth. Their presence in specialty coffee shops and upscale stores has also contributed significantly to this growth.

Convenience also fuels the growth of the cold brew market. Ready-to-drink cold brew tea and coffee, available in bottles or cans, have become popular in retail markets worldwide, including petrol station chains, supermarkets, and branded coffee shop chains. These beverages are both healthy and convenient, making them ideal for a busy lifestyle.

Cold brew tea trends

Like the beverage industry, consumers of cold brew tea are seeking new flavors and additional health benefits. To meet these evolving preferences, both global and local tea brands are continually introducing innovative products to remain competitive and attract more customers.

Flavored cold brew teas

Consumers seek new and exotic flavors, especially creative combinations. Cold brew teas are being developed by many brands, with flavors such as peach, yuzu, hibiscus, passion fruit, and mint. These natural flavor options offer more appealing flavors without the added sugar or artificial ingredients. Twinings, Lipton, and Ahmad brands have introduced a cold brew tea line, offering exciting experiences to customers worldwide.

Functional teas

Following global wellness trends, brands are launching RTD cold brew teas that are fortified with adaptogens (like ashwagandha or reishi), brain tonics, or electrolytes. Herbal teas such as chamomile, lemongrass, butterfly pea, and rooibos are being cold-brewed to attract health-conscious consumers seeking relaxation, digestive support, or antioxidant benefits.

Packaging Innovation

Eco-conscious consumers are influencing the way cold brew tea is packaged. We are seeing a shift toward glass bottles, aluminum cans, and biodegradable pouches. Minimalist, clean-label packaging that communicates transparency and sustainability is increasingly important in standing out on shelves and online.

Cold brew coffee trends

With cold brew coffee, consumers value high-quality, specialty coffee, besides functional ingredients. They pay attention to how it is prepared and often prefer brews that highlight the origin and unique characteristics of the coffee beans. Here are some trends in this beverage:

Nitro cold brew

One of the standout trends in cold brew coffee is nitro – coffee infused with nitrogen gas to create a smooth, creamy texture and a foamy head, much like beer. It has been popular in specialty coffee shops for many years and has expanded into canned RTD formats. Nitro cold brew not only enhances mouthfeel but also provides a richer, slightly sweeter taste without added sugar.

Functional additions

Today’s consumers are not just looking for caffeine, they want added benefits. Cold brew coffee mixed with plant-based milks (like oat, almond, or coconut) is now a staple in many coffee shops and grocery stores. Some products include MCT oil, collagen, protein, or CBD, creating a functional coffee drink that supports energy, focus, or beauty routines.

Artisanal and craft cold brews

Similar to the specialty coffee movement, consumers are gravitating toward cold brew coffee that is small-batch, ethically sourced, and locally roasted. Craft brands are offering unique roast flavors and highlighting the origin of their beans, such as Ethiopian, Colombian, or Guatemalan varieties. This storytelling aspect adds value and creates customer loyalty.

cold brew tea and coffee — Nitro cold brew from Starbucks

Conclusion

Cold brew drinks are ideal for consumers looking for refreshing and healthy options made with clean, natural ingredients. With numerous opportunities available, now is the perfect time for beverage brands and cafés to capitalize on this trend. To truly attract younger consumers, product development must go with creativity and innovation, such as offering new flavors, formats, or health benefits that stand out.

About Future Generation Co., Ltd

Future Generation Company Limited is one of the largest tea and beverage suppliers in Vietnam, with 28 years of experience in production and export. FGC is equipped with modern technology to produce tea, ensuring high-capacity production and uniformity between production batches. Thanks to using automatic systems in production along with advanced processing machines, we are able to supply large quantities of tea to the market, meeting consumer needs.

FGC strives to achieve our mission to become Vietnam’s leading healthy beverage company. Our factories also meet international standards such as ISO, HACCP, etc. In addition, we constantly innovate our machinery system, strengthen production capacity, and increase productivity. If you have any questions about our products, feel free to contact us here: