Why cold coffee is a hot opportunity
The UK's relationship with coffee has shifted in ways that matter directly to venue operators. Coffee overtook tea as the nation's most consumed beverage for the first time in 2023, and roughly three-quarters of UK adults now drink it regularly, most of them daily (Lumina Intelligence, 2023; Statista, 2024). That growth hasn't been confined to hot drinks. As consumption habits diversify and guests look for variety across the day, cold formats are capturing a growing share of attention on out-of-home menus.
At the same time, the broader hospitality sector is navigating a genuinely difficult trading environment: tight margins, cautious consumer spending and rising costs. Yet even in this climate, guests remain willing to spend more for occasions that feel considered and worth it. According to Zonal and NIQ's GO Technology Report (January 2026), nearly three in four consumers say they would visit a venue specifically for an elevated experience, and many report they'd happily pay a premium when the quality and presentation justify it. Cold coffee sits right at the intersection of these two forces: rising demand and a guest base that rewards quality over volume.

What guests expect from cold coffee today
Out-of-home coffee drinkers are, on the whole, unwilling to compromise. According to illy's own consumer research (August 2024), the majority of coffee drinkers who also brew at home say they won't settle for a lower standard of coffee when they're out. That expectation doesn't disappear just because the drink is served cold; if anything, it becomes more visible, because there's nowhere for average espresso to hide behind milk, ice or syrup.
This has practical implications for menu design:
- Base quality is non-negotiable. A cold drink is only as good as the espresso underneath it.
- Consistency matters more, not less. Ice dilutes inconsistency quickly, so recipes need to be standardised and staff need to be trained on ratios.
- Presentation carries weight. Cold drinks are inherently more visual (glassware, layering and garnish all influence perceived value and social sharing).
- Speed and format flexibility count. Guests want cold coffee available whether they're sitting down for brunch, grabbing something on the move, or ordering from the bar in the evening.
The formats driving the category
Cold coffee is no longer a single product; it's a category with several distinct growth areas, each suited to a different part of the guest journey.
|
Format |
What it offers |
Best-suited occasion |
|
Cold brew |
Smooth, low-acidity, naturally sweeter profile |
All-day café, breakfast and brunch menus |
|
Iced espresso-based drinks |
Familiar, customisable, fast to prepare |
Coffee-to-go, quick-service counters |
|
Ready-to-drink (RTD) coffee |
Convenience, portability, consistent quality |
Retail-style fridges, hotel lobbies, grab-and-go |
|
Coffee cocktails |
Elevated, experience-led, higher margin |
Bars, evening dining, hotel lounges |
|
Plant-based cold coffee |
Caters to dietary preference and sustainability interest |
Cafés, offices, health-conscious venues |
A few of these deserve closer attention:
- RTD coffee has moved from a niche category to a mainstream expectation. Several major coffee-to-go operators have already begun extending iced options across large parts of their estates, and category expansion is increasingly seen as the way to grow coffee-to-go consumption, which declined by around 4% in 2024 in otherwise saturated, high-footfall locations (AVA 2025 Census Report).
- Coffee cocktails are benefiting from a broader shift towards "elevated experiences." Guests are cutting back on frequency of visits but spending more when they do go out, a "fewer but better" pattern noted in the Zonal/NIQ GO Technology Report (January 2026), and cold coffee-based serves such as espresso martinis and their evolving variations offer operators a way to add theatre and margin to an evening drinks list without needing a large new equipment investment.
- Plant-based cold coffee taps into two trends at once: dietary inclusivity and a growing consumer interest in sustainability credentials, which increasingly influence where people choose to spend their hospitality budget.
Premiumisation is changing what "cold coffee" means
The broader UK coffee market has been on a premiumisation trajectory for several years, and cold coffee is now part of that story rather than separate from it. Bean-to-cup technology, better milk handling, and more sophisticated cold-brew equipment have all raised the technical ceiling of what a venue can produce without needing specialist baristas on every shift.
This matters commercially:
- Guests are demonstrably willing to pay more for a well-made cold coffee than for a generic soft drink, provided the quality is visible and consistent.
- A well-curated cold coffee section can lift average spend without requiring a full menu overhaul.
- Venues that treat cold coffee as an extension of their hot coffee quality standards (rather than an afterthought) tend to build stronger repeat visitation, particularly among younger guests who over-index on trying new drink formats and sharing them socially.

Building a cold coffee offer that works
For coffee brands reviewing their 2026 drinks strategy, a few practical principles stand out:
- Start from the espresso, not the ice. Whatever cold format you choose, its quality ceiling is set by the coffee base. Invest here first.
- Keep the range focused but distinct. Three or four well-executed cold coffee options will outperform a long list of similar variations.
- Train for consistency. Ratios, extraction times and milk handling need the same discipline cold as they do hot.
- Think across dayparts. Cold coffee shouldn't be confined to summer or to breakfast, build it into brunch, afternoon and evening occasions.
- Use it as a storytelling opportunity. Origin, roast profile and preparation method give staff something genuine to talk about, which supports the premium positioning guests increasingly respond to.
illy has spent over 90 years perfecting a single, consistent blend, and that same philosophy extends naturally into cold coffee: a smooth, never-bitter espresso base that performs just as well over ice, in a cold brew, or shaken into a coffee cocktail.
For venues looking to build or refine their cold coffee menu with genuinely premium ingredients and expert support, illy offers a free trial to help you find the right solution for your business. Get in touch to start your free trial now!