Forget Starbucks coffee - Gen Z like their drinks ice cold
Young consumers are choosing cold, customisable drinks and coffee chains are racing to catch up.
Gen Z, individuals born between 1997 and 2012, are gravitating towards cold drinks over traditional coffee, a trend that Starbucks is keen to capitalize on. Elaine Ling, a 21-year-old from New York and California, prefers cold drinks from local cafes rather than Starbucks, citing their coffee as overly sweet. She describes herself as a "refresher girl" when visiting Starbucks.
This sentiment is shared by younger consumers across the US, with cold drinks offering a customisable and visually appealing option that Gen Z finds appealing.
Tristan Höver, Euromonitor International's global insight manager for hot drinks, explains that Gen Z sees drinks as something they can tailor to their specific needs or moment, providing a sense of control and personal expression. The appeal of cold drinks lies in their size, layers, and visual appeal, which justify higher prices. Jerry Sheldon, an analyst at IHL Group, sees this trend as part of a broader cultural shift, where cold drinks serve as a form of self-expression, much like fashion choices.
Starbucks has recognized this shift, with three out of every four drinks now being cold. The company's Unicorn Frappuccino, a brightly colored, layered drink with swirls of pink, blue, and purple, saw a 44% increase in foot traffic during its three-day run in August, according to Placer.ai data analytics. Other chains are also tapping into this trend, with Dunkin' Donuts experimenting with protein-boosted drinks and customisable cold options.
Even fast food chains like McDonald's, Chick-fil-A, and Taco Bell have launched fruit-based drinks and coffee-adjacent options to appeal to the same younger demographic.
This trend extends beyond the US, with UK data showing that shoppers under 25 buy more cold drinks than hot drinks when out and about, making up over 60% of their drink purchases. Cold drinks aren't just a summer habit either, with over 70% of purchases occurring year-round. For Starbucks, this shift is crucial, with cold drinks accounting for over 70% of its US beverage sales, playing a central role in its turnaround strategy.
Written by urgent.news from BBC World's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
