India’s cold coffee market is witnessing rapid growth as Gen Z consumers increasingly embrace iced beverages as part of their daily routine, prompting major FMCG companies, café chains, and direct-to-consumer (D2C) brands to expand their offerings in what is emerging as one of the country’s fastest-growing beverage segments.
Traditionally viewed as a seasonal indulgence during summer, cold coffee is now evolving into a year-round consumption category, driven by changing consumer preferences, café culture, and the rise of quick commerce platforms.
Industry leaders, including Nestlé India, Hindustan Unilever (HUL), and Tata Starbucks are investing heavily in the segment, while newer brands such as Sleepy Owl are reporting strong growth in ready-to-drink (RTD) coffee products.
According to Nestlé India, cold coffee has become one of its fastest-growing beverage segments over the past 18 months, with the RTD category consistently delivering double-digit growth. The company is expanding its portfolio through formats such as iced coffee, frappes, and cold beverage vending solutions to broaden consumer adoption.
“Cold coffee clearly has the potential to evolve into a massive category in India, and that is central to our long-term strategy,” said Sunayan Mitra, Head of Coffee and Beverages at Nestlé India.
HUL is also strengthening its ready-to-drink coffee portfolio under the Bru brand to cater to rising demand across different consumption occasions. Company executives attribute the trend to younger consumers seeking convenient, on-the-go beverage options and increasingly shifting away from traditional carbonated soft drinks.
The café sector is also benefiting from the trend. Tata Starbucks reported sustained demand for cold brews and iced lattes throughout the year, with Tier-II cities contributing a growing share of sales. According to Mitali Maheshwari, Head of Product and Marketing at Tata Starbucks, the popularity of cold coffee beverages is expanding well beyond metropolitan markets.
For D2C coffee brands, the most notable development has been the gradual disappearance of seasonality. Sleepy Owl, whose ready-to-drink business contributes nearly 30 per cent of total sales and is growing at an annual rate of 60–70 per cent, said winter demand fluctuations have reduced significantly compared to pre-pandemic levels.
“Pre-COVID, winter sales could drop 60–70 per cent compared to peak summer months. That decline has now come down to around 20 per cent, and we expect demand to become almost uniform throughout the year,” said co-founder Ajai Thandi, crediting quick commerce platforms for accelerating category growth.
Quick commerce and e-commerce channels are further reinforcing the trend. Zepto reported that Vietnamese coffee remains one of its most popular café products across seasons. Meanwhile, Flipkart Minutes recorded a twofold increase in cold coffee consumption between January and March this year, which surged nearly fivefold by May. Searches for cold coffee grew 4.6 times, while demand for sugar-free variants jumped eightfold. Flavoured options such as hazelnut and chocolate also registered fivefold growth.
Industry observers believe that rising urbanisation, increasing disposable incomes, and a digitally connected younger population are creating favourable conditions for cold coffee to transition from a niche beverage to a mainstream category in India’s evolving beverage market.