Home-Brewed Iced Coffee: A Growing Trend Challenging Coffee Shops
Making iced coffee at home has long been a challenge for coffee lovers. The homemade versions often turn out watery, overly bitter, or simply fail to match the quality of an $8 barista-crafted beverage. However, leading brands like Nestlé and Keurig are betting big on changing that perception by bringing café-quality iced coffee into households.
In 2024, Keurig Dr Pepper introduced a dedicated iced coffee maker designed to produce a chilled beverage in under three minutes. Priced at $199, the machine promises to deliver café-style drinks without the risk of being diluted by melting ice. Using advanced technology, it rapidly cools the freshly brewed coffee, preserving its flavor and richness.
Nestlé, the parent company of renowned coffee brands like Nespresso and Nescafé, has also stepped up its game. Earlier this year, Nescafé launched an espresso concentrate in markets such as Australia and China, specifically formulated for iced drinks like lattes and Americanos. Meanwhile, Nespresso machines now feature modes for cold coffee creations, complemented by a new Starbucks blend dedicated to iced coffee, canned cold brews, and Coffee Mate cold foams for added convenience.
Despite these advancements, many experts argue that homemade iced coffee still falls short of café standards. Christopher Hendon, a chemistry professor at the University of Oregon, explains that single-serve machines typically use less coffee in their pods compared to the amount used for cold brews in cafés. This results in weaker drinks that lack the bold flavor many consumers expect.
Furthermore, cold brew coffee made in cafés benefits from a longer extraction process—often steeped overnight—while capsule machines brew in a matter of minutes, leading to a different taste profile.
This surge in innovation comes as iced coffee continues to gain popularity among younger consumers. A growing number of Americans are recreating coffeehouse favorites at home, driven by financial pressures and a desire for customization. Jennifer Creevy, director at WGSN Food & Drink, notes that younger generations view coffee as a way to express their personalities and experiment with flavors.
Nestlé has observed a significant shift in consumer behavior, with indulgence surpassing stimulation as the primary reason for drinking coffee. Cold coffee, particularly as an afternoon pick-me-up, has become a key driver of growth. The company estimates that one in three cups of coffee consumed globally is now cold, with younger generations leading this trend.
Iced coffee is not just a passing trend; it represents a lucrative opportunity for companies. According to Nestlé, coffee was the biggest contributor to its growth during the first nine months of 2024. Despite rising coffee prices—driven by climate challenges affecting production—brands remain optimistic about the demand for cold coffee products.
While the demand for at-home iced coffee solutions is on the rise, converting loyal coffee shop patrons remains a challenge. Keurig’s K-Brew+Chill, launched this fall, faced mixed reviews from users who reported issues such as limited functionality for brewing truly cold coffee.
Nevertheless, nearly a quarter of Americans now prefer their coffee cold, and coffee shop spending remains robust, with consumers shelling out $32.9 billion annually, according to the National Coffee Association.
As brands continue to innovate, the battle between coffee shops and at-home brewing systems intensifies. Whether these machines can truly replicate the coffeehouse experience remains to be seen, but the push for convenience and affordability ensures that the iced coffee trend is here to stay.
