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 consumers are increasingly opting for ice-cold beverages over traditional coffee, a trend exemplified by individuals like Elaine Ling, 21, who frequents Starbucks exclusively for cold drinks, preferring local cafes for her "real coffee." Ling told the BBC, "I don't really like to go to Starbucks for coffee. I think their coffee is like too sweet. I'm more of a refresher girl when it comes to going to Starbucks."
Despite its origins as a coffee shop over five decades ago, Starbucks now reports that three out of every four drinks sold are cold, encompassing iced fruity drinks, protein shakes, and "dirty sodas" – a blend of foam, syrups, and juices. This preference for cold, customizable drinks is widespread among Gen Z consumers, those born between 1997 and 2012.
Tristan Höver, global insight manager for hot drinks at Euromonitor International, noted to the BBC that younger consumers view drinks as opportunities for customization to suit specific moments or needs, stating, "Customisation gives them a sense of control." He added that while Gen Z is price-sensitive, they are willing to pay more for drinks that feel special, larger, or functional. Höver explained that with cold drinks, factors like size, layers, and visual appeal help justify higher prices.
Jerry Sheldon, an analyst at IHL Group, views these habits as part of a broader cultural shift, asserting, "Cold drinks are a form of self-expression," akin to clothing or hair color in signaling identity. Kelly Goldsmith, a Professor of Marketing at Vanderbilt University, likened Starbucks to an affordable luxury handbag, stating that consumers are "not paying for what's in the cup, but what's on the cup," an image that has helped Starbucks maintain a price premium for years.
Social media also plays a significant role. Starbucks' Unicorn Frappuccino, available for only three days in August, generated considerable buzz on TikTok. This dense, brightly colored blended drink, featuring pink, blue, and purple swirls, whipped cream, and a crunchy topping, boosted foot traffic at Starbucks by 44% during its brief availability, according to data analytics firm Placer.ai.
Other chains are also capitalizing on this trend. Dunkin' Donuts is experimenting with protein-boosted and customizable cold options, recently collaborating with celebrities like Kylie Jenner to promote limited-time drinks. Natalie Ludwig, a TikTok food-and-drink creator with over 500,000 followers, has sampled Dunkin's cold drinks and believes the Jenner campaign is an effort to attract a younger audience, hoping that "maybe that younger audience sticks" if the promotion succeeds. Fast food chains such as McDonald's, Chick-fil-A, and Taco Bell have introduced fruit-based "refreshers," coffee-adjacent options, and other non-caffeine cold drinks targeting the same demographic.
The trend extends beyond the US, with UK data indicating a similar shift. Isabella Reeve, a consumer insight director at Worldpanel by Numerator, reported that shoppers under 25 purchase more cold drinks than hot when out of the home, with over 60% of their drink purchases being cold, compared to just 30% for shoppers 55 and older. Reeve also noted that cold drinks are not merely a summer habit, with over 70% of people buying them year-round, and over 80% doing so in the summer months.
Tirtha Dhar, a marketing professor at the University of Guelph in Canada who studies consumer choice, stated that cold drinks have become a "sweet spot" for Starbucks' bottom line. He described the "infinite personalisation" offered through foams, flavors, and protein as "almost pure profit" for the chain. Cold drinks have been instrumental in Starbucks' recovery after a period of weaker sales, now accounting for over 70% of its US beverage sales, a shift central to its turnaround strategy.