Big gulps: Cold drinks capture both mind share and market share
Big gulps: Cold drinks capture both mind share and market share
Big gulps: Cold drinks capture both mind share and market share


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·Americans are filling up on cold drinks — and growth in the space signals they’re going back for more.
The world’s biggest coffeehouse chain, Starbucks, saw cold drinks account for about 75% of its beverage sales in its fiscal 2024 third quarter, a huge jump from just 37% in 2013.1,2
People spent an average of $48.05 at Starbucks in November 2024, according to Empower Personal DashboardTM data.
Those drink runs can help satisfy cravings for both caffeine and overall happiness: Empower research found that 2 in 5 Americans are willing to pay $7 for a daily coffee because of the joy it brings.
A jolt of iced drinks
Coffee lovers are enjoying a cold cup (or several) despite the weather. U.S. consumers bought $17.7 billion worth of cold coffee away from home in 2023, which includes iced coffee, cold brew, and frozen coffee drinks. Sales have been pouring in since 2016, when cold coffee drinks amounted to only $8.5 billion.3
The American Coffee Association found that chilling out is high on the menu, with the most popular non-espresso-based beverages being cold brew (21%) and frozen blended coffee (19%).4 Starbucks’ popular Frappuccino drink line (on the menu since 1995) may have 36,000 potential combinations of add-ins to build on its base of coffee, milk, and ice, but frozen blended coffee actually made its debut in southern California in 1987 at The Coffee Bean & Tea Leaf's location in Westwood, next to UCLA in Los Angeles.5,6
Retailers have been adding to the iced offerings, even as temperatures drop. On the heels of a viral pop song, Dunkin’ both wrapped up one year and kicked off another with a limited-time drink — Sabrina’s Brown Sugar Shakin’ Espresso — on Dec. 31, 2024. People have liked being able to bring the experience home, too. A signature drink shaker available online sold out more than 2,000 units in just 17 minutes.7 For Dunkin’ lovers making mixes at home, the chain released a line of cold foam creamers to top things off.8
Fans of Starbucks’ iced coffee may be motivated to linger longer at the store. Announced in January, patrons who sit and stay in stores can get free refills on iced (and hot) coffee and tea served in a reusable cup. While Starbucks’ more specialty beverages aren’t included in the free-refill lineup, a pre-pandemic benefit has returned to customize drinks. Condiments like sugar, milk, and creamer are once again available for customers to add after receiving their order.9
Customizing the menu
Being able to tailor a drink for personal tastes that can change by the season, day, or even just a mood is also driving the appeal of cold beverages.
As early as the late 1990s, Starbucks’ approach to ordering caught attention. The chain got a Hollywood shoutout in the movie "You’ve Got Mail" as a place where people “can make six decisions just to buy one cup of coffee.”10
The trend still carries strong: These days, 25% of the custom drinks Starbucks sells in the U.S. have more than three modifications.11
Grabbing the chance to stand out has spread into soft drinks, too. In late 2023, McDonald’s opened the first location of spinoff restaurant CosMc’s, which sports a menu of customizable drinks and quick bites.12 Add-ons include popping fruit boba pearls and fruit-flavored syrups.13 Among the top sellers are the Island Pick-Me-Up Punch and Churro Cold Brew Frappe.14
Blending the trends
The Dutch Bros moniker may not be as widespread as larger brands in the drink market, though the chain has been on a growth tear. Selling mostly iced and espresso-based drinks, Dutch Bros has doubled its store count since 2021, now close to 1,000 spots on both coasts and in the South, and has become the third-largest coffee chain in the U.S.15
The menu is dominated by iced drinks, including shakes, smoothies, and sparkling soda, along with coffeeshop standbys and its own combinations.16
Consumers have been buying into the roster, with the company’s total revenue rising by more than 30% each year since 2020. Dutch Bros stores drive $2 million in annual sales, on average.17
The majority of Americans (59%) say success means being able to spend money on things and experiences that bring happiness, according to Empower research. Grabbing a cold drink along the way could add up to many brighter days.
Get financially happy.
Put your money to work for life and play.
1 Discovery UK, “Brewing Success: Inside the Largest Coffee Chains,” January 2024.
2 CNBC, “Here’s why Americans are obsessed with iced coffee,” November 2024.
3 CNBC, “Here’s why Americans are obsessed with iced coffee,” November 2024.
4 National Coffee Association, “National Coffee Data Trends Fall 2024,” September 2024.
5 Lux Cafe Club, “How The Frappuccino Became a Billion-Dollar Obsession,” May 2024.
6 TastingTable, “You Can Thank The Coffee Bean And Tea Leaf For Kickstarting The Frozen Coffee Trend,” April 2024.
7 Nation’s Restaurant News, “Sabrina Carpenter stars in Dunkin’ drink promotion,” January 2025.
8 Dunkin’, “Dunkin’ Introduces Cold Foam Creamers and Limited-Edition S’mores Creamer in Grocery Aisles, Bringing Coffee Lovers More “Little Treat” Moments At Home,” January 2025.
9 CBS News, “Starbucks brings back condiment bar, free refills on drinks ordered ‘for here’,” January 2025.
10 USA Today, “'You've Got Mail': 20 best quotes for the film's 20th anniversary,” December 2018.
11 New York Times, “The Customized Drink Is Out of Control,” September 2024.
12 CNBC, “McDonald’s to open first CosMc’s spinoff restaurant this week,” December 2023.
13 New York Times, “The Customized Drink Is Out of Control,” September 2024.
14 CNBC, “McDonald’s to close three CosMc’s locations — and open two more,” January 2025.
15 Barron’s, “Dutch Bros Is Coming After Starbucks. Drive-Throughs and Happy Workers Sell,” December 2024.
16 Dutch Bros, “Menu,” accessed January 2025.
17 Barron’s, “Dutch Bros Is Coming After Starbucks. Drive-Throughs and Happy Workers Sell,” December 2024.
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