With coffee prices reaching unprecedented highs, savvy consumers are turning to more cost-effective ways to enjoy their cold caffeine fix this summer. The rising costs of coffee shop cold brews and other chilled beverages have led many to seek out more affordable alternatives, whether through grocery store purchases or homemade brews.
In recent years, the popularity of cold coffee beverages has surged, with 35% of coffee orders now being cold, a notable increase from 28% in 2017, according to Darren Seifer, a food and beverage analyst at Circana. Despite their popularity, cold coffee drinks are often more expensive than their hot counterparts. For example, during the first quarter of the year, U.S. consumers paid an average of $3.08 for a regular coffee, $5.14 for a cold brew, and $5.46 for a latte, as reported by digital payments processor Toast. Higher-priced cold drinks like iced shaken espressos and matcha tea lattes have also contributed to increased revenue for coffee chains like Starbucks, helping to offset a decline in customer visits.
Seifer advises that for those seeking to minimize costs, purchasing cold brew at retail outlets or convenience stores can be a more economical choice compared to buying from cafes and restaurants. Convenience stores might offer competitive pricing that undercuts quick-service restaurants, making them a viable option for budget-conscious consumers.
Recent data reveals a shift in consumer behavior, with fewer people buying iced coffee from cafes. From March 2023 to March 2024, 60% of iced coffee expenditures were spent on beverages purchased outside the home, a decrease from 68% four years earlier. This shift is partially attributed to rising global coffee prices due to adverse conditions in major coffee-producing regions. However, coffee prices at U.S. grocery stores have seen a slight decrease, with prices 1.6% lower in June compared to the previous year, according to federal data.
For those who prefer brewing their own coffee, there is an increasing array of options available, allowing coffee enthusiasts to enjoy a refreshing cold brew without the premium price tag of coffee shop purchases.