Iced coffee: Where’s the next wave of innovation?

Young woman with a shaved head is sitting in a cafe, savoring an iced coffee through a paper straw
Iced coffee is gaining ground across Europe’s on-trade, creating new opportunities for beverage suppliers. (Image: Getty Images/ Noko LTD)

Iced coffee is gaining ground across Europe’s on-trade. As volumes rise in four markets, where could suppliers find their next opportunity – from flavour innovation to processing technology and functional ingredients


Iced coffee innovation in Europe: overview

  • Iced coffee volumes are rising across Europe, led by the Netherlands and UK.
  • Brands are using new flavours to drive consumer interest and differentiation.
  • Coffee concentrates and cold-soluble formats are boosting convenience.
  • Protein is emerging as a key functional addition in iced coffee.
  • Future growth will depend on delivering taste, convenience and standout innovation.

Iced coffee is gaining momentum across Europe’s on-trade, with UK volumes rising 39% year on year between February and August 2026, according to beverage analytics company Fyre.

The Netherlands recorded the strongest growth among the four markets tracked, with volumes up 44%. The UK followed at 39%, ahead of France at 20% and Germany at 19%.

As the category expands, brands are looking beyond traditional iced coffee to find new ways to capture consumer interest. Flavour innovation, coffee concentrates and functional additions such as protein are opening up new possibilities, putting the focus on how suppliers can help brands deliver distinctive products without compromising on taste.

Flavour innovation creates room to experiment

Iced coffee with whipped cream and caramel sauce and cup of black coffee on a black wooden table.
Rising demand for iced coffee is prompting brands to explore new flavours, formats and functional additions. (igorr1/Image: Getty Images/ Igorr1)

Flavour remains one route for brands to differentiate their iced coffee offerings, from established coffee-shop favourites to more adventurous combinations.

Research from NielsenIQ (NIQ) found more than a third of consumers were more likely to experiment with flavours in iced coffee or tea. Traditional profiles such as chocolate, vanilla and caramel remain popular, while fruitier flavours including apple, lime, strawberry and raspberry have also gained ground in iced beverages.

For flavour houses, this creates scope to explore how familiar coffee profiles can be adapted for cold consumption, alongside combinations that introduce new sensory experiences.

However, the challenge is not simply to develop more flavours. Suppliers must help brands balance novelty with recognisable taste profiles, ensuring that products appeal to consumers beyond an initial trial.

The opportunity also extends to texture and mouthfeel, particularly as brands explore creamier formats and functional additions that can alter the sensory experience of a drink.

Concentrates and processing technology expand format options

Convenience is another area of innovation, with brands looking to make iced coffee easier to prepare and consume.

In May 2025, Nescafé Espresso Concentrate launched in the UK, allowing consumers to make café-style iced drinks at home. The format offers an alternative to ready-to-drink products, giving consumers the flexibility to prepare cold coffee to their own preferences.

Processing technology is also playing a role. Nestlé has developed a freeze-drying technique designed to help premium soluble coffee dissolve in cold liquids while retaining a smooth, rich flavour profile.

The technology highlights one of the challenges facing coffee developers: delivering a consistent coffee experience without relying on conventional hot-water preparation.

For ingredient suppliers and manufacturers, concentrates and cold-soluble coffee ingredients offer different ways to approach product development. The choice will depend on the intended format, preparation method, flavour profile and production requirements.

For brands, the commercial question is which formats offer the right balance of convenience, quality and differentiation for their target consumers.

Protein brings a functional dimension to iced coffee

Protein drink. Pouring protein shake in a glass. Dark background. Body building, muscle growth and food supplement concept
Protein is among the functional additions brands are exploring as they look to differentiate iced coffee offerings. (Gingagi/Image: Getty Images/ Gingagi)

Protein is another area where brands are extending the role of coffee beyond refreshment and caffeine.

Caffè Nero and Myprotein announced a partnership introducing two protein-based drinks across Caffè Nero’s UK stores – an Iced Vanilla Protein Latte containing 25g of protein and an Iced Vanilla Protein Matcha Latte containing 24g.

The launch reflects growing experimentation with functional additions in familiar beverage formats.

In April 2026, Starbucks introduced Protein Cold Foam in the UK, offering a topping containing 15g of whey protein per serving. The foam is designed to add protein and a creamy texture to existing drinks, including iced coffee.

Starbucks has also expanded into bottled RTD coffee and protein beverages, combining coffee with 22g of complete protein per bottle.

These examples demonstrate different approaches to functional coffee innovation, from adding protein to a drink itself to incorporating it through a topping or a packaged product.

For ingredient suppliers, the challenge is to deliver the desired nutritional profile without compromising the coffee’s flavour, texture or overall drinking experience. Protein can affect mouthfeel and formulation, making ingredient selection and processing important considerations.

The commercial opportunity will depend on whether these products attract repeat purchases, rather than relying solely on consumer interest in protein.


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Where could innovation go next?

Fyre’s data points to growing demand for iced coffee across four European on-trade markets, giving brands and suppliers a basis on which to explore new product opportunities.

Flavour development, concentrates and functional additions each offer potential routes to differentiation. But the next wave of innovation will need to address more than consumer curiosity. Products must deliver a compelling taste experience, work within practical manufacturing constraints and give consumers a clear reason to choose them.

For suppliers, that means working with brands to identify the right ingredients, technologies and formulations for emerging beverage concepts.

As the category expands, the opportunity is not simply to produce more iced coffee, but to develop products that offer something distinct enough to stand out in an increasingly competitive market.