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Analysis

Iced coffee for all: Why indulgence, innovation and branding are key to growth

Analysis
Iced coffee for all: Why indulgence, innovation and branding are key to growth

Consumer Behavior

As consumers grow increasingly aware of the benefits of fibre-rich diets, expert new research from NIQ reveals how foodservice businesses can capitalise.  


With iced coffee broadening its appeal, suppliers and operators need to work together on innovative and treat-led twists to stand out from the crowd. 

That’s among the takeaways from NIQ’s Hot Beverages 2026 report, which delivers vital insights into consumers’ latest habits and preferences in this increasingly popular segment. It shows how iced coffee has moved out of the niches of the menu to a mainstream choice, with around a third (32%) of consumers now drinking it out-of-home—5 percentage points more than a year ago.  

Reaching more consumers through treats, flavours and trusted brands

Content

Iced coffee’s demographics 

Take-up is rising particularly fast among older adults. The proportion of those aged 55+ who are buying iced coffees has soared by 11 percentage points in just two years. Despite seeing a slight decrease in consumption (-3pp) vs two years ago, it can’t be forgotten however that younger consumers continue to dominate engagement with iced coffee in the UK making up nearly half of all GB iced coffee drinkers in the sector. This being in comparison to 55+ who make up less than 20%

This presents suppliers and operators with two core challenges: to embrace new opportunities among older adults and revive the interest of younger coffee drinkers. The Hot Beverages 2026 report flags three effective solutions: indulgent options, flavour innovation and brand leverage.  

A treat mindset 

For consumers of all ages, one way to sustain interest is to tap into treat mindsets. NIQ’s consumer research shows growing demand for sweet and dessert-inspired additions to iced coffees, with those choosing caramel and toffee syrups rising by 6 and 3 percentage points respectively. At a time when many consumers are closely watching their money, positioning iced coffee as an affordable indulgence can help to loosen their spending.  

Innovate to succeed 

Another path to growth is innovation. Well over a third of all consumers say they more likely to experiment with flavours in iced coffees, and new tastes can encourage younger customers in particular to keep coming back. Suppliers are able to lead the way here, by creating interesting new concepts that grab attention in an increasingly competitive marketplace.  

Creative presentation of iced coffee can also gain attention on social media platforms and build word of mouth among younger buyers. Brands that understand how flavour preferences vary by age group will open the door for older consumers to experiment as well.

The power of branding 

While innovation is important, NIQ’s Hot Beverages 2026 report shows why it needs to be accompanied by good branding. Around a third (32%) of consumers—and half of 18-to-34-year-olds—say they would be more likely to buy an iced coffee if they recognised the brand of syrup that was involved. It highlights the mutual value of positive collaborations to brand owners, venues and consumers alike. 

Discover more 

To gain a deeper understanding of the Hot Beverage space, NIQ’s FastTrack delivers a comprehensive view tracking consumer coffee shop behaviour – from visitation, occasions, purchase habits, drink preferences and the key drivers behind drink choice across QSR channels. Our new tool aids with benchmarking awareness, visitation and satisfaction to strengthen your competitive positioning. 

To Learn more, download more information about the Hot Beverages Report 2027.

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