Gen Z has different coffee preferences than previous generations, and according to news outlet Fast Company, they “like it cold, sweet and loaded with creamer. For a lot of younger drinkers, that very first cup of coffee was just as likely to be iced as it was hot. And get this—about 85% of Gen Z coffee fans are adding creamer, compared to just 70% of coffee drinkers overall,” the outlet wrote.
Beverage companies are answering to the younger cohort’s demand with new products. Nestlé, for example, said it has released products "from cold-dissolving instant coffee to liquid espresso concentrates and all kinds of flavored toppings,” Fast Company said.
“We’ve done a lot of things in cold coffee the last two years to really meet this need of Gen Z and young millennials,” Daniel Jhung, president of Nestlé’s USA beverage division, told Fast Company. “That’s a big trend that we’re pushing into.”
Nestlé recently opened a $675 million coffee-creamer factory in Glendale, Arizona which is indicative of the company “putting our money where our mouth is,” Jhung said, adding that it’s designed to be flexible to respond to fast-moving consumer trends. “It’s going to meet the growing demands of this new coffee consumer for the next decade.”
“Nestlé is also eager to ride what it’s calling the ‘fourth wave of coffee,’ being driven by the youngest coffee drinkers. This era is defined by ‘the four Cs’ of coffee: cold, convenient (or instant), craft and customizable,” wrote Fast Company.
Research from the Fall 2024 National Coffee Data Trends (NCDT) analysis, conducted by Dig Insights on behalf of the National Coffee Association (NCA), found that “out-of-home coffee consumption resumed its highest level since January 2020, and a majority of Americans believe coffee is good for their health.”
One third of U.S. coffee drinkers expressed interest in beverages that deliver targeted health benefits, such as functional ingredients like adaptogens for cognitive enhancement or probiotics for improved gut health, NACS Daily reported. Cold brew coffee drinkers are “particularly receptive” to beverages that improve cognitive enhancement, while tea drinkers prioritize relaxation and boosting immunity.
Read more about how iced coffee is shaking up the hot dispensed beverage bar in c-stores in the September 2024 issue of NACS Magazine feature “Cold Is Hot.”