Why Has Iced Coffee Become a Permanent Menu Option?

A decade ago, iced coffee was a drink that was ordered a couple of times a year, usually during the summer months. Nowadays, iced coffee has become one of the most popular in cafes, workplaces and on-the-go settings in the UK. So, what changed? Why has iced coffee become a permanent menu option rather than a summer treat?

Much like the high street coffee shop boom in the early 2010s, there has been a recent influx in iced coffee sales. The UK ready-to-drink coffee market is estimated to be worth $520.84 million (around £410 million) and continues to grow steadily, with cold brew identified as the fastest-growing segment of that market, according to Mordor Intelligence.

A survey conducted by the World Coffee Portal reported that 93% of industry leaders surveyed named iced coffee as the primary category for coffee shop menu innovation today. Their analysis of the wider UK coffee shop market, now valued at £6.8 billion, highlights iced beverages as one of the key forces reshaping the sector. Globally, the picture is just as striking: analysts at Coherent Market Insights forecast the iced coffee market will grow from $6.59 billion in 2026 to $11 billion by 2033.

There are several forces that have contributed to the increase in iced coffee sales.

1. Gen Z and Millennials Drink Coffee Differently

Millennials often view coffee as an artisanal morning ritual and functional fuel, whereas Gen Z treat coffee as a casual, all-day customisable treat. The National Coffee Association’s latest data found that 40% of Gen Z coffee drinkers had a cold or iced coffee within the past day, which is more than any other age group. As Gen Z becomes a larger share of the workforce, those preferences follow them into the office, and they expect the workplace coffee machine to deliver more than a standard black americano.

2. Social Media Made Iced Coffee an Aesthetic

Iced coffee is arguably one of the most photogenic drinks on a coffee shop menu. Layered iced lattes, swirling cold foams and pastel-coloured creations have racked up millions of views across TikTok and Instagram, normalising cold coffee as an everyday order. As Coffee Intelligence reports, this visibility-driven demand has turned chilled drinks, from iced matchas to cold brews, into a major driver of cafe sales and profitability.

3. It’s a Year-Round Drink, not a Seasonal One

One of the biggest shifts in consumer behaviour is that iced coffee is no longer weather-dependent. According to the same Coffee Intelligence analysis, Innova Market Insights found the UK recorded the highest iced coffee sales in Europe in 2024, with the category growing at around 22% a year over the past five years. That kind of sustained growth simply doesn’t happen if people are only buying cold drinks in the summer months. Although, warm weather does still give sales a healthy boost.

Research covered by Tea & Coffee Trade Journal found that nearly half of UK adults swap their usual order for an iced coffee when temperatures rise with 81% of Gen Z making the switch. However, the foundation underneath those seasonal spikes is now solid, consistent demand every month rather than just during the summer months. For a growing number of drinkers, an iced latte in January is a perfectly normal order.

4. Cold Brew Tastes Sweeter

The slow extraction process of cold brew results in a smoother, sweeter taste than hot-brewed coffee. This is because the acids and oils responsible for bitterness in hot coffees are extracted much slower in cold water, allowing for more delicate, aromatic notes to be prominent. Cold brew is also considered to be more caffeinated, which is often a win for younger consumers who enjoy early morning workouts or need a longer-lasting lift to power through a busy day. That combination of smoother taste and stronger kick makes it an easy sell to people who would never normally order a black coffee.

If your current commercial coffee machine only offers hot drinks, then you’re missing an opportunity to cater to a growing group of drinkers. The good news is that adding iced coffee to your offering is simple. Modern bean to cup coffee machines and self-serve premium coffee stations can deliver iced options alongside the classics meaning that a single machine can cater to all your employees’ preferences.

Considering that iced coffee is a common purchase in cafes and in on-the-go settings in the high street, there is also a commercial benefit to upgrading your commercial coffee machine to offer iced coffee. Not only will employees be more willing to pay for a coffee but it also gives employees a reason to stay on site rather than heading to the high street or local café for a drink. Keeping employees on-site saves both the employer and the employee money and boosts the workplace productivity.

Thinking about bringing iced coffee to your workplace? We’d love to help you find the right solution for your team. Get in touch with us today.