Zenith Global Report 2021
Cold Brew Beverages Market Report
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Contents Section 1. Introduction 2. Executive summary 3. Cold brew beverages category overview 4. Global opportunity markets 4.1 Asia Pacific 4.2 North America
4.3 Europe 5. Competitive landscape 6. Brand profiles
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Introduction
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1. Introduction Overview
Scope
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Cold brew is a brewing method that has experienced heightened popularity globally in recent years. Originating from Japan, the process of cold brewing steeps coffee grounds or tea leaves in cold water for up to 24 hours. This long process allows for deeper flavours to be carefully and gradually extracted resulting in a rich, smooth beverage for consumers to enjoy.
Cold brew beverages
This special technique also brings a natural s weetness to traditionally bitter drinks which therefore allows for an undiluted and low- to nosugar beverage. The taste profile is a key reason as to why consumers and businesses are invested in this product which simultaneously provides a rich, premium taste with a healthier profile than competitor cold coffee products that often balance bitter coffee with sugar, syrups, dairy and other flavourings.
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The leading regions for cold brew beverages are Asia Pacific, North America and Europe, with greater opportunities for growth and for new companies to enter this market. Some presence of cold brew is evident in the Middle East, Latin America and Africa, however lower opportunity is presented in these regions. This report covers the global cold brew beverages market including historic market volume and value, growth forecasts, regional breakdown of the leading markets, competitive landscape and key development opportunities. It also contains the split of cold brew coffee versus tea, price positioning, niche opportunities, consumer drivers and brand profiles of the top cold brew players worldwide.
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The key process of cold brew lies within cold water and brewing time.
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For cold brewed coffee, ground coffee is mixed with unfiltered, roomtemperature water. This is then steeped for up to 24 hours and then filtered. Served and consumed cold.
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For cold brewed tea, loose leaf tea or tea bags are used instead of coffee, but the brewing process remains the same as above.
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The process for making nitro cold brew starts the same with brewing tea or coffee cold, however, nitrogen is added resulting in a creamy taste and foam on top of the end product.
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The scope of this report includes all non-alcoholic beverages that use cold brew tea or coffee as the primary ingredient, and use the term ‘cold brew’ in their marketing, packaging and messaging.
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This includes ready-to-drink (RTD) cold brew coffee and tea beverages sold in retail and grocery outlets, as well as made to order cold brew available in the HoReCa sector, including dispensed cold brew beverages and nitro cold brew beverages.
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Concentrated cold brew products are to be considered out of scope for the purposes of this report as not in RTD format.
Regions covered: •
Asia Pacific
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Middle East
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North America
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Latin America
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Europe
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Africa
1. Introduction Definitions and key terms •
In order to clarify what lies outside of the scope of this report it is important to outline how cold brew beverages should be distinguished from other terms within the iced coffee and iced tea markets.
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Zenith Global has limited its research scope to just cold brew beverages, therefore the following are considered out of scope for this report:
Iced coffee / iced tea •
Iced coffee or tea involves chilling a hot brewed beverage which is refrigerated and served chilled or pouring a hot brewed beverage over ice - also referred to as the “over ice” method.
Vs.
Cold Brew Coffee
Iced Coffee
Brewed at room temperature for 10-24 hours
Brewed at 80-95°C within minutes
Often brewed as a concentrate and diluted with water
Most often a hot brewed coffee shot cooled or poured over ice
Can be stored in the fridge for up to 14 days
Best consumed straight away
Naturally sweeter flavour brought out with less acidity and bitterness
Stronger coffee flavour with bitter and acid notes
Flash brew / flash chilled •
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Similar to iced brews, flash brewed beverages are brewed hot but then chilled rapidly using nitrogen to lock in the flavour.
In addition, the relatively new process of ‘snapchilling’ takes freshly hot brewed coffee and rapidly chills the beverage under a minute using a machine instead of nitrogen. America’s Elemental Beverage Co. are currently leading the offering for snapchilled products and equipment.
Frappuccinos •
A blended beverage consisting of coffee, milk, cream and ice, with flavoured syrup and whipped cream occasionally added to the final product. Frappuccinos are served chilled.
Concentrated cold brew •
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Concentrated cold brew products contain a higher concentrated level of coffee or tea. These type of products need to be diluted with water or milk before fit for consumption, and is therefore not considered ready-to-drink.
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Executive summary
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2. Executive summary Key findings •
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Commentary
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Cold brew beverages category overview
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3. Cold brew beverages category overview Global cold brew beverages •
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Commentary
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3. Cold brew beverages category overview Market volume Commentary
Global cold brew beverages volume, 2017-20
Volume (million litres)
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2017
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2018
2019
2020
3. Cold brew beverages category overview Market volume
Volumes (thousand litres)
Global cold brew beverages volume, 2017-20
2017
2018 Asia Pacific
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North America
2019 Europe
Middle East
Latin America
2020 Africa
3. Cold brew beverages category overview Market value Commentary
Global cold brew beverages value, 2020
Value (US$ million)
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Asia Pacific
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North America
Europe
Middle East
Latin America
Africa
Total
3. Cold brew beverages category overview Price positioning Global cold brew beverage brands value per litre, 2020 14.00
Brand F
12.00
Brand H
Value per litre (US$)
10.00
Brand E
Glass bottle
8.00
Plastic bottle
Brand B Brand A 6.00
Can
Brand D
Cup (dispense)
4.00
Brand G
Brand C
2.00
0.00
0
14
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400
600
800 Pack size (millilitres)
1,000
1,200
1,400
1,600
3. Cold brew beverages category overview Price positioning and packaging Plastic bottles •
Commentary
Glass bottles •
Glass Commentary
Cans •
Commentary
Bag in box •
Commentary
Others •
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Commentary
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3. Cold brew beverages category overview Cold brew coffee vs tea North America market share, 2020
Asia Pacific market share, 2020
Coffee
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Coffee
Tea
Commentary
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Commentary
Europe market share, 2020
Tea
Coffee
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Commentary
Tea
3. Cold brew beverages category overview Market forecast Commentary
Global cold brew beverages volume forecast, 2020-25f
Volume (million litres)
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2020
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2021f
2022f
2023f
2024f
2025f
3. Cold brew beverages category overview Market volume evolution (thousand litres) Region Asia Pacific
North America Europe Middle East
Latin America Africa
Total
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2017
2018
2019
2020
2021f
2022f
2023f
2024f
2025f
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Global opportunity markets
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Global opportunity markets 4.1 Asia Pacific
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4. Global opportunity markets Asia Pacific Regional volume market analysis
Asia Pacific cold brew volume, 2017-20
Commentary
Volume (thousand litres)
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2017
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2018
2019
2020
4. Global opportunity markets Asia Pacific Leading brands •
Commentary
Leading cold brew brands in Asia Pacific by volume, 2020
Brand A Brand B Brand C Others
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4. Global opportunity markets Asia Pacific Future regional opportunities •
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Commentary
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Global opportunity markets 4.2 North America
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Global opportunity markets 4.3 Europe
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Competitive landscape
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5. Competitive landscape Global view on packaging, flavours, price and competition Asia Pacific
Case study: Innovation in packaging
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Commentary
North America •
Commentary
Europe •
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Commentary
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Commentary
5. Competitive landscape Key drivers on the future development of the global cold brew beverages market Taste •
Commentary
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Asia Pacific: Commentary
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North America: Commentary
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Europe: Commentary
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5. Competitive landscape Key drivers on the future development of the global cold brew beverages market Price •
Commentary
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Asia Pacific: Commentary
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North America: Commentary
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Europe: Commentary
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5. Competitive landscape Key drivers on the future development of the global cold brew beverages market Sustainability and ethics
Case study: Sustainability and ethics
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Commentary
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Asia Pacific: Commentary
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North America: Commentary
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Europe: Commentary
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Commentary
5. Competitive landscape Niche opportunities •
Commentary
Carbonated cold brew •
Commentary
Kombucha cold brew •
Commentary
Cold brew + CBD •
Commentary
Cold brew + coconut water •
Commentary
Cold brew + hot chocolate •
Commentary
Cold brew + fruit juice •
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Commentary
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5. Competitive landscape Consumer profiles and packaging Refuelling students and young professionals •
Commentary
Premium adult soft drinks •
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Packaging types
Commentary
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Packaging types
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Brand profiles
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6. Brand profiles Europe: Nitro cold brew coffee Minor Figures, UK www.minorfigures.com Product information:
Variants: Positioning and channels: Caffeine content: Pack size & type: Price:
Brand view Commentary
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Contact us For further information about this report, please contact Sudipta Bhattacharjee Research Analyst
Zenith Global Ltd Tel +44 (0)1225 327900
sbhattacharjee@zenithglobal.com
www.zenithglobal.com
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