Super Bowl Ads Highlight Growing Craze for Cold Coffee at Home

As the Super Bowl ads rolled in, one trend stood out: the growing craze for cold coffee at home. Major brands like Pepsi and Budweiser have shifted their advertising strategies to capitalize on this trend, indicating the market's potential for growth. But how has this trend impacted the sales and market share of traditional hot coffee products, and what implications does this have for the broader coffee industry?

The increasing popularity of cold brew coffee at home has had a significant impact on the sales and market share of traditional hot coffee products. According to Datassential's coffee trends report, the average number of cups of coffee consumed daily has decreased from 1.7 to 1.5, indicating a shift in consumer preferences towards cold brew and other cold coffee beverages (Datassential, 2024). This trend is further supported by the National Coffee Association's finding that cold coffee consumption continues to grow while hot coffee consumption declines (NCA, 2024).

The rise in popularity of cold brew coffee at home has led to a decrease in sales of traditional hot coffee products. For instance, Starbucks, a leading coffee chain, has seen a decline in sales of its hot coffee products, with the company reporting a 3% decrease in comparable store sales in the US in the second quarter of 2024 (Starbucks, 2024). This decline can be attributed to the growing demand for cold brew and other cold coffee beverages, as consumers seek refreshing and convenient options.

The implications of this trend for the broader coffee industry are significant. As consumers increasingly prefer cold brew coffee at home, there is a growing demand for high-quality, convenient, and affordable cold brew products. This has led to an increase in the number of cold brew coffee brands and products available in the market, as well as the expansion of cold brew offerings by established coffee companies (Datassential, 2024).

Moreover, the rise in popularity of cold brew coffee at home has also led to a shift in the distribution channels for coffee products. Traditional hot coffee products are typically sold through coffee shops, cafes, and grocery stores, while cold brew coffee is often sold through convenience stores, online platforms, and ready-to-drink (RTD) beverage options (Datassential, 2024). This shift in distribution channels has created new opportunities for companies to reach consumers and expand their market share.

In conclusion, the increasing popularity of cold brew coffee at home has impacted the sales and market share of traditional hot coffee products, leading to a decline in hot coffee consumption and a shift in consumer preferences towards cold brew and other cold coffee beverages. This trend has significant implications for the broader coffee industry, as companies adapt to meet the growing demand for convenient, high-quality, and affordable cold brew products.