Iced coffee has become an incredibly popular drink, especially during the hot summer months. With cold brews, iced lattes, frozen coffee drinks, and more available, iced coffee now accounts for nearly 30% of all coffee consumption in the United States. But with so many different options to choose from, which iced coffee drinks are the most popular?
The Rise of Iced Coffee
While iced coffee may seem like a modern trend, its origins actually date back over 100 years. The first known iced coffee was created by a Japanese immigrant named Kumato Sato in 1907. Sato owned a coffee shop in Chicago and began cold-brewing coffee to create a smoother, less acidic drink compared to traditional hot coffee poured over ice. This new cold brew method helped popularize iced coffee in America.
For decades, iced coffee was still relatively niche, accounting for just 3% of coffee sales in the 1980s. Its popularity began to grow in the 1990s and 2000s with the rise of Starbucks and other specialty coffee chains. As temperatures increased, customers sought out cold, refreshing coffee drinks as an alternative to hot coffee. Chains like Starbucks began promoting new iced coffee offerings like cold brew and their famous Frappuccinos.
By 2017, iced coffee accounted for nearly 25% of all coffee sales. Other industry trends like the third wave coffee movement and cold brew’s penetration into grocery stores has further fueled iced coffee’s popularity. With no signs of slowing down, iced coffee is poised to surpass hot coffee as the preferred coffee preparation within the next few years.
Most Popular Iced Coffee Drinks
When it comes to the most popular iced coffee drinks, customer preferences generally fall into three main categories:
Iced Lattes
Iced lattes are espresso-based coffee drinks combined with milk served over ice. Much like their hot counterpart, iced lattes contain a single or double shot of espresso and steamed milk. They are sometimes flavored with syrups like vanilla, caramel, or pumpkin spice. Iced lattes are lighter and less concentrated than iced coffee, making them more approachable for many customers. Their smooth, milky texture also appeals during summer. According to market research firm NPD Group, iced lattes are the most popular iced coffee drink ordered in restaurants like Starbucks, outpacing even cold brew.
Cold Brew
Cold brew coffee has boomed in popularity over the past decade. As the name suggests, cold brew is made by steeping coffee grounds in room temperature or cold water for 12-24 hours. This long steeping time extracts the flavors more slowly, creating a smooth coffee concentrate. Cold brew’s sweeter, less acidic taste profile has attracted many fans. And unlike traditional iced coffee, cold brew’s flavor doesn’t get diluted when poured over ice or mixed with milk. Major chains like Starbucks and Peet’s offer cold brew on tap, while bottled cold brew from brands like Chameleon and La Colombe have exploded in grocery stores. According to the NPD Group, cold brew is the second most popular type of iced coffee.
Frozen Blended Coffee
Frozen blended coffee drinks combine coffee with milk, ice, and often sweeteners or flavored syrups like a milkshake. Starbucks’ Frappuccinos essentially created and popularized the frozen coffee category. Their sweet, icy textures and optional coffee, milk, and flavor combinations appeal to many customers seeking a dessert-like coffee drink. Companies like Dunkin’ Donuts, McDonalds, and Caribou Coffee have all expanded their frozen coffee offerings to compete with Starbucks, further fueling the category’s growth. And with customization options, people can craft their perfect frozen coffee taste. Frozen coffees are the third most popular iced coffee type behind lattes and cold brew.
Most Popular Brands of Iced Coffee
When it comes to widespread availability and sales volume, three major chains dominate the iced coffee market:
Starbucks
As the world’s largest specialty coffee company, Starbucks has played a major role in popularizing iced coffee with offerings like the Frappuccino. Nearly 50% of Starbucks’ beverage sales now come from cold coffee drinks. Their cold brew and iced espresso drinks are top sellers, while their Frappuccinos and coffee milkshakes lead the frozen coffee category. With over 15,000 stores in America, Starbucks remains many customers’ go-to for iced coffee.
Dunkin’ Donuts
Dunkin’ is another leader in the iced coffee space. It claims its iced coffee makes up approximately 60% of its annual coffee sales. Along with classic iced coffee, Dunkin’ offers popular flavored swirls like caramel and mocha to customize drinks. Its lineup of frozen blended coffees is also expanding. With over 9,000 stores nationwide, Dunkin’s affordably priced iced coffee options attract many daily drinkers.
McDonald’s
Though not a specialty chain, McDonald’s has become a major iced coffee provider. It now sells over 600 million cups of iced coffee every year. McDonald’s fast service and $2 iced coffee offered all day long offers a convenience factor for many working Americans. And its new McCafé Frappés have expanded McDonald’s frozen coffee selection. As one of the largest fast food chains, McDonald’s wide availability and marketing efforts have helped propel it into the top three for iced coffee.
Most Popular Retail Brands
Pre-packaged iced coffee is a booming retail category, led by these leading brands:
| Brand | Type |
|---|---|
| Starbucks | Bottled cold brew and iced coffee |
| Dunkin’ Donuts | Bottled iced coffee |
| La Colombe | Bottled cold brew |
| Chameleon | Cold brew concentrates and ready-to-drink |
| Califia Farms | Cold brew coffee and almond milk blends |
As consumer demand for ready-to-drink coffee grows, these brands invest heavily in bottling and canning operations. Their multi-serve bottles and single-serve cans are widely distributed in major grocery and convenience stores. Their popularity provides an extra boost for the overall growth of the iced coffee category.
Most Popular Flavors
When it comes to the most popular iced coffee flavors, surveys show simple classics and sweet indulgent options top the list:
Original Black Iced Coffee
Despite the growing variety, original black iced coffee remains a go-to choice. The cooling effect helps temper the bitter notes of black coffee for those who find hot black coffee too intense. It also highlights the natural sweetness of properly brewed coffee. Original iced coffee allows purists to enjoy the unadulterated flavor of high quality coffee beans.
Vanilla
Vanilla is a perennial favorite flavor choice for its nearly universal appeal. The rich, creamy vanilla nicely complements coffee’s Roasted notes. Starbucks reports vanilla syrup is their #1 flavored syrup add-in for all coffee drinks. The combination of iced coffee with vanilla ice cream is also popular.
Caramel
For those seeking an extra indulgent iced coffee, the sweet taste of caramel is a top choice. Whether added via flavored syrup or swirl, caramel’s buttery flavor provides a tasty complement to iced coffee’s slight bitterness. It can also be incorporated by using salted caramel whipped cream or drizzle.
Mocha
Mocha blends the taste of chocolate and coffee into a delicious iced coffee option. The addition of chocolate highlights coffee’s natural cocoa notes. And just like caramel, mocha appeals to those looking for a sweet tooth-satisfying iced coffee drink. Using chocolate or mocha swirl rather than syrup provides even more intense chocolate flavor.
Regional Favorites
Iced coffee preferences can also vary by region. Here are some standout regional favorites:
New England – Coffee Milk
In Rhode Island and bordering New England states, coffee milk is a beloved specialty drink. It’s made by mixing coffee syrup or coffee extract with milk over ice. Autocrat brand coffee syrup is a New England staple used for this classic iced coffee variation.
New Orleans – Iced Café au Lait
New Orleans gives the iced coffee treatment to its beloved café au lait drink. It combines cold-brewed coffee and warmed milk poured over ice for a smooth, milky iced coffee. It’s often sweetened with liquid cane syrup rather than plain sugar.
Midwest – Iced Mochas
Chocolate loving Midwesterners favor indulgent iced mochas in states like Illinois and Missouri. Blending chocolate or mocha sauce with coffee, milk and ice satisfies their craving for chocolate paired with cooling iced coffee.
South – Sweet Tea Iced Coffee
Southerners add their love of sweet tea to iced coffee by blending the two beverages together. This sweet tea-coffee hybrid often contains simple syrup and lemon to balance the citrus and sugar flavors with cold coffee. It’s especially popular in Texas, Georgia and throughout the Sunbelt.
Most Affordable Options for Iced Coffee
One contributor to iced coffee’s growth is its affordability compared to other coffeehouse drinks. Here are some of the most budget-friendly ways to enjoy iced coffee:
Make Your Own
Brewing your own iced coffee is one of the cheapest options. Making a batch of cold brew concentrate at home costs just pennies per cup. And mixing hot brewed coffee with milk and ice takes just minutes. With some cold brew or hot coffee and your own flavors, you can customize iced coffee for a fraction of take-out prices.
Fast Food Deals
Fast food chains like McDonald’s offer $2-$3 iced coffee options that are an affordable choice for many working Americans. Coupon apps and promotional deals at chains like Dunkin’ and Starbucks can also cut costs on store bought iced coffee. Signing up for loyalty programs provides free beverage rewards.
Bottled and Canned
Ready-to-drink iced coffee in bottles and cans provides portable convenience. Refrigerated and shelf-stable options from brands like Starbucks, La Colombe, Chameleon and more cost just $3-$5 for an on-the-go iced coffee option. Store brands offer even cheaper alternatives.
Happy Hour Specials
Many coffee shops offer afternoon happy hour deals on iced coffee drinks to lure in customers during slower times. Discounted iced lattes, frozen blended coffees, and cold brew for $2-$4 provides a more affordable way to get your fix and save.
Trends to Watch
Some up and coming trends that could impact iced coffee’s future include:
More Customization
Customers increasingly want to personalize their drinks to exact preferences. Chains are expanding flavor options for swirls and drizzles. More cafes are offering inventive specialties like coffee tonics and coffee cocktails. And new mobile ordering apps make customization easy.
Nitro Cold Brew
Nitrogen-infused cold brew for a creamy, frothy texture is spreading. Originally popularized in independent cafes, major chains like Starbucks now offer nitro. Expect more nitro taps alongside regular cold brew to become standard at coffee shops.
Functional Ingredients
Iced coffee is incorporating functional ingredients like protein, MCT oils, collagen, and more for specialized nutrition and energy. These inclusions make iced coffee a health drink and pre or post workout beverage. Brands like JaxJolt, Koia, and Caveman are innovating in the functional space.
Sustainability
Consumers increasingly care about sustainability, so brands are responding. Reusable cups provide discounts on iced coffee. Compostable and recyclable cups, lids and straws replace less eco-friendly packaging. And iced coffee fuels more shops and delivery fleets converting to electric vehicles.
Conclusion
Iced coffee now accounts for nearly 30% of coffee consumption as its popularity continues rising. While original black iced coffee and iced lattes remain go-to choices, indulgent flavors like caramel and mocha and customization drive new trends. Major chains like Starbucks, Dunkin’ Donuts and McDonald’s lead the category with affordable on-the-go options. But the iced coffee movement also provides opportunities for high-end brands and independent shops. With hot summers and endless variations, iced coffee stands to become America’s coffee of choice moving forward.