October 16, 2025- In the minds of US consumers, hot and iced coffee are considered two distinct products. While it is a smart move for brands to incorporate both into their portfolios, they require distinct approaches to messaging. Beyond different usage occasions, generations and gender are key elements of how hot and iced coffees are perceived. Growing price sensitivity and the push for functional ingredients also emphasize opportunities that brands are taking to differentiate themselves in the competitive coffee space. Innova’s report, “Coffee & Iced Coffee in the US,” examines these coffee trends and how they are influencing the global food and beverage market.
Iced Coffee Trends Lag Behind Hot Coffee
Unlike hot coffee, iced coffee consumption is not linked to a particular part of the day or occasion. 19% of US consumers drink iced coffee at least once a day, and most view it as an occasional beverage or a “me time” treat. Therefore, iced coffee trends indicate the opportunity to promote more versatile applications for iced coffee. Iced coffee may also be seen as a seasonal beverage. In contrast, hot coffee consumption remains consistent across seasons, despite its status as a hot drink.
Growing Price Sensitivity
As environmental changes and tariffs threaten coffee supply from multiple angles, the biggest challenges for brands will be to keep up with coffee demand and keep prices reasonable. According to Innova’s research on coffee trends, over the last twelve months, consumption of hot coffee has remained consistent for 67% of US consumers. However, price sensitivity will be important to shaping innovation and brand strategy.
Increasing prices could impact future iced coffee trends and growth, as budget constraints are noted as the top reason for US consumers reducing their iced coffee consumption. Thus, iced coffee brands can either position themselves against bigger luxuries or consider expanding their portfolio to include other products or coffee alternatives, as diversity will be increasingly important to brand resilience.
Gen Z & Millennial Coffee Trends
When it comes to generational differences in iced coffee trends, Millennials remain devoted consumers in the US, with 23% drinking iced coffee one or more times a day. Additionally, Gen Z interest in iced coffee is on the rise, with 15% of Gen Z drinking the beverage at the same frequency as their Millennial counterparts. Because iced coffee faces competition from matcha, energy drinks, and soda in the category, brands should present competitive sets that also include non-coffee products. Limited time offerings could provide opportunities for brands to target the expanding Gen Z consumer base, as younger generations look for innovative brands or flavors. When it comes to hot coffee, espresso-based beverages are also gaining momentum with young consumers. Customization and a wide range of options also engage with the desires of younger generations that find personalization appealing.
Collaboration Potential
For US consumers, collaborations can be an opportunity to offer consumers something new for both hot and cold coffee offerings. For example, seasonal and limited collaborations can make indulgent flavors shine. Kroger’s “Fall Edition Mild Roast Maple Coffee Cake Coffee” capsules highlight a seasonal approach, while La Colombe’s limited edition “Smores Latte” cold brew features an indulgent version of their cold brew draft lattes.
Pop culture and F&B brand crossovers also highlight a method of collaboration that can engage US consumers. Between 2019 and 2023, the US food and beverage industry has seen a 32% increase in beverages with a collaboration claim, underscoring an opportunity for coffee brands to take advantage of in NPD development. Four Sigmatic has collaborated with HBO to create a “The Last of Us” ground coffee product, reflecting the network’s popular original television show. Nespresso’s “Oatly Barista Edition Coffee Capsules” also demonstrates an example of a collaboration across CPG products that offer US consumers a sense of novelty.
Novelty & Flavor Innovation in Coffee Trends
Innova’s coffee trends analysis indicates that 32% of US consumers say that more variety and novelty is the reason their consumption of iced coffee has increased. Therefore, brands can meet consumers’ desire for diversity through cross-category mashups when approaching flavor innovation. For example, dessert mashups and savory sweet combinations are a few of the leading cross-category combinations that brands can look to for diversification.
Engaging Women vs Men Coffee Trends
One third of consumers overall are increasing their iced coffee consumption. However, women and men view coffee differently, and thus, brands should consider these different perceptions when engaging with innovations. Innova’s coffee trends research highlights that men are less likely than women to indulge in iced coffee as part of “me time,” and over half of female consumers value taste and flavor as the top consideration that influences purchasing decisions when buying iced coffee. Therefore, they are looking for flavor innovation from iced coffee and are open to products drawing from indulgent treats. Although iced coffee might be a treat, it is still a separate category than desserts, underscoring the importance of ensuring that products are not overly indulgent.
For men, coffee consumption is increasing more than women, and for them, awareness is key. 32% of men have increased their consumption of iced coffee, due to greater awareness of products and brands within the category. Health claims are also important to men. Moreover, positioning iced coffee as beverages outside of the home could positively impact consumption for males, such as at sporting events or concerts.
The Rise of Functional Ingredients
Across various coffee formats, added protein is an opportunity to target health-conscious consumers. In the US market, 58% of consumers are actively seeking methods to incorporate protein into their diets. Therefore, beverages, such as coffee, that are consumed daily can offer an easy way to increase protein intake. Shakes, coffee sachets, and coffee pods are some formats that many US brands are capitalizing on for added protein benefits.
During uncertain times, consumers say they are drawn to mood-enhancing flavors to uplift or calm them. Therefore, brands can look to ingredients that support consumers‘ emotional wellness. For instance, adaptogenic mushrooms can help boost coffee’s natural associations with energy. For instance, Laird’s Maca Instant Coffee uses functional mushroom extracts to promote energy and vitality. Other brands position mushroom coffee as enhancing focus and as alternatives without the jitters associated with coffee.
What’s Next for Coffee and Iced Coffee Market Trends in the US?
Due to rising prices and climate change, coffee substitutes and coffee blends are growing coffee trends. Furthermore, new cultivation methods will emerge, due to increased temperatures. Brands can expect that collaborations will continue between unexpected brands, and barista-worthy at-home trends will influence the category, especially with aesthetically pleasing creations fit for social media sharing.
This article is based on Innova’s Coffee and Iced Coffee in the US report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more