Forget Starbucks coffee - Gen Z like their drinks ice cold

Young American consumers, particularly Generation Z, are increasingly favoring cold, customizable beverages over traditional hot coffee, reshaping the strategies of major coffee chains like Starbucks. The shift, driven by preferences for personalization, social media influence, and a desire for self-expression, has led to a significant portion of Starbucks’ sales now coming from cold drinks such as iced coffees, protein shakes, and specialty refreshers.

Elaine Ling, a 21-year-old who splits her time between New York and California, typifies this trend. She avoids Starbucks for hot coffee but visits specifically for cold beverages. “I don’t really like to go to Starbucks for coffee,” Ling told the BBC. “I think their coffee is too sweet. I’m more of a refresher girl when it comes to going to Starbucks.” Her preference aligns with broader consumer behavior, as Starbucks now reports that three out of four drinks sold in the U.S. are cold, including items like fruity iced drinks and the viral “dirty soda.”

Industry analysts attribute this shift to Gen Z’s demand for customization. Tristan Höver, global insight manager for hot drinks at Euromonitor International, notes that younger consumers view drinks as a way to tailor their experience to specific moments. “Customisation gives them a sense of control,” he explained. Analyst Jerry Sheldon of IHL Group adds that cold drinks serve as a form of self-expression, similar to fashion or hairstyle choices. Kelly Goldsmith, a marketing professor at Vanderbilt University, compares Starbucks to a luxury brand like Louis Vuitton, suggesting consumers pay for the experience and image as much as the product itself.

Social media, particularly TikTok, has played a major role in popularizing cold drinks. Starbucks’ Unicorn Frappuccino, a brightly colored blended drink with swirls of pink, blue, and purple, became a viral sensation in August 2017. According to data analytics firm Placer.ai, the drink boosted foot traffic at Starbucks by 44% during its brief availability. Other chains are following suit. Dunkin’ Donuts, for example, has partnered with influencers like Kylie Jenner to promote limited-time cold drink offerings, including protein-boosted options.

The trend is not limited to the U.S. UK data from Worldpanel by Numerator shows that shoppers under 25 purchase cold drinks more frequently than hot ones when away from home. Over 60% of their drink purchases are cold, compared to just 30% among those aged 55 and older. More than 70% of younger consumers buy cold drinks year-round, with over 80% doing so in the summer.

For Starbucks, the shift has been financially beneficial. Tirtha Dhar, a marketing professor at the University of Guelph in Canada, describes cold drinks as a “sweet spot” for the company’s profitability. The ability to customize drinks with foams, flavors, and protein boosts allows for higher margins. Cold beverages now account for more than 70% of Starbucks’ U.S. beverage sales, playing a key role in the company’s recent sales recovery.

As Gen Z continues to prioritize customization and visual appeal, coffee chains are adapting their menus to meet these demands, signaling a long-term change in consumer preferences.

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