Gen Z ditches hot coffee in favour of cold, customisable drinks

A shift is under way in the coffee shop industry as younger customers move away from classic hot coffee toward iced drinks, fruit-based refreshers, protein shakes and blended "dirty soda" style beverages. Starbucks, founded more than five decades ago as a coffee shop, now says three out of every four drinks it sells are cold.

Elaine Ling, 21, who splits her time between New York and California, says she only visits Starbucks for cold drinks, preferring local cafes for what she calls "real coffee" because she finds Starbucks' coffee too sweet.

Customisation and identity

Industry observers say this shift reflects younger consumers' desire for control and personalisation. A representative from Euromonitor International notes that customisation gives young people a sense of control, and that they are willing to pay more when a drink feels special or functional. Analysts also describe cold drinks as a form of self-expression, comparable to clothing or hair colour, while marketing academics compare Starbucks' brand appeal to that of an affordable luxury item, helping it sustain premium pricing.

The role of social media

Social media has amplified the trend. Starbucks' limited three-day release of its Unicorn Frappuccino, which went viral on TikTok, boosted foot traffic at its stores by 44% during that brief period, according to data from Placer.ai. Competitors including Dunkin' Donuts, McDonald's, Chick-fil-A and Taco Bell are also rolling out protein-enhanced or caffeine-free cold drinks to court younger audiences, with Dunkin' enlisting celebrity partnerships to promote its offerings.

The trend is not confined to the US. Data from the UK shows shoppers under 25 buy more cold drinks than hot ones when away from home, with over 60% of their purchases being cold compared with 30% among those 55 and older, and roughly two-thirds of buyers purchasing cold drinks year-round rather than only in summer. Analysts note that the highly customisable, high-margin nature of cold drinks has become central to Starbucks' recent turnaround after a period of weaker sales.