Iced coffee, matcha, and other refreshing drinks: the rise of cold beverages

“Hot or iced?” It is a question that sounds completely normal in most coffee shops nowadays. The come the follow-up questions: oat milk or regular milk? Vanilla or caramel? Cold foam on top? Extra toppings? A simple iced latte is no longer the only summer alternative to a cappuccino.

At Starbucks in the United States, roughly three-quarters of all drinks sold are cold. In 2013, that was just 37%. Sales in cold coffee drinks are also rising sharply at British chain Caffè Nero: in July 2025, the chain sold 56% more cold drinks than a year earlier. Consumer research by Worldpanel by Numerator reveals clear generational differences in the United Kingdom. More than 60% of the drinks bought by consumers under the age of 25, are cold. For those over 55, that figure sits around 30%. A striking detail: more than 70% of consumers buy cold drinks all year round, not just during summer months.

From an iced latte to a new category 

In the past, the menu at coffee shops was straightforward. There was an americano, a cappuccino, and a latte. Major coffee chains like Starbucks changed that when they added frappuccinos to the menu over 30 years ago. Today, coffee shops—both large and small—offer all kinds of variations, with cold selections often appearing more extensive than hot options: think nitro coffee (brewed using ice-cold nitrogen), cold foam, iced matcha variations, craft iced tea, and endless options for coffee frappés using different types of milk and syrups. Outside the traditional coffee world, the selection of cold coffee and tea beverages is also expanding on menus at chains like McDonald's, Taco Bell, and Dunkin'. In Asia, this trend has been visible for much longer. Bubble tea is a prime example: milk-based tea supplemented with tapicocapearls, jellies, and other toppings have grown in popularity in recent years.
The way cold drinks have become mainstream is also evident at The Coffee, a Brazilian chain with locations in over 250 countries. The chain categorizes its classic coffee selection under the header Purists. Strikingly, cold coffees are listed alongside the hot classics. An iced latte or cold brew is not presented as an alternative variation here, but as part of the “traditional” coffee offering.

Cold foam and sesame cream 

In the past, sirups, foams, and creams were primarily sweet additions to hot coffee. Today, they are flavor-defining elements. Vanilla, pumpkin spice, and caramel have been joined by pistachio, sesame, yuzu honey, tahini date syrup, and ube cream. Texture also plays a much larger role tha before, thanks in part to the growing popularity of bubble tea. Pearls, jellies, fruit pieces, crunchy toppings, and distinct layers turn a beverage into something that is not just drunk, but feels more like a sweet snack.

Research by British coffee roaster Lincoln & York shows that up to 75% of young coffee drinkers customize their beverage to match their personal taste—for instance, by choosing plant-based milk or functional ingredients. It is a way to turn a relatively simple drink into a luxury treat. Tristan Höver of Euromonitor International explained to the BBC that younger consumers are willing to pay more when a drink “feels special, larger, or functional.” For cold drinks, size, layering, and overall visual appeal plays a key role. Another explanation for the growth of cold coffee drinks is the "little treat" trend, also known as the "affordable luxury" trend. A customized coffee serves as a small moment of indulgence without requiring a large financial outlay.

You are what you drink 

A lot of cold drinks stand out for their looks. A colorful matcha, an iced latte with a thick layer of foam, or a drink featuring eye-catching toppings looks far more spectacular than a standard cappuccino. Jerry Sheldon, an analyst at US research and advisory firm IHL Group, sees this evolution as part of a broader cultural shift. In a BBC article, he refers to cold drinks as a form of self-expression, similar to how people express themselves through clothing or hair color.

Starbucks has been capitalizing on this for years. Last summer, the coffee chain reintroduced the Unicorn Frappuccino—a drink featuring pink, blue, and purple layers—as a limited-time offer after nine years. According to Placer.ai, traffic to Starbucks spiked by 44.3% compared to the daily average in 2026.

Margin driver? 

A customized iced drink is often complex to prepare. Where a standard iced latte consists simply of ice, milk, and espresso, the new generation of cold drinks involves many more elements. Adding extra foam, syrup, and toppings requires a significant number of extra steps. Coffee platform Perfect Daily Grind describes how baristas preparing cold drinks spend more time moving back and forth between refrigerators, syrup pumps, ice bins, and blenders. According to the trade publication, some drinks can take up to seven or more steps to prepare. More variations mean more mise-en-place, increased waste, and a more cluttered bar area. At the same time, these extras can be commercially attractive. According to Perfect Daily Grind, customized cold drinks often yield higher profit margins, and customers are willing to pay a premium for something unique.