How Gen Z is Shaping the Future of Coffee and Tea Industries | Digital Ordering and Social Media Experiences Key in Gen Z's Hot Drink Preferences

Gen Z is reshaping coffee and tea consumption with a focus on specialty and RTD drinks, personalization, convenience via digital ordering, and sustainability. To succeed, brands should offer novel, social media-friendly experiences that emphasize wellness and align with Gen Z's values.

Dublin, Oct. 23, 2025 (GLOBE NEWSWIRE) -- The "A Perfect Blend - How Gen Z is Reshaping the Coffee and Tea Market" report has been added to ResearchAndMarkets.com's offering.

Gen Z consumers are redefining coffee and tea consumption with demand for specialty and RTD drinks, personalization, and convenience via digital ordering. They seek novelty, social media-driven experiences, and value sustainability and wellness in products and packaging. To succeed, hot drinks players need to launch products appealing to Gen Z's values of personalisation, novel experiences and wellness.

The global briefing offers an insight into to the size and shape of the Hot Drinks market, highlights buzz topics, emerging geographies, categories and trends as well as pressing industry issues and white spaces. It identifies the leading companies and brands, offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change and criteria for success. The analysis can focus on both retail and foodservice.

Key findings

Gen Z consumers' spending power is set to increase in the long term

Gen Z's spending power is set to grow over the forecast period, as they mature and enter the workforce in greater numbers. This is especially evident in emerging markets like India, where the average gross income of those aged 20-29 years is set to be the fastest growing between 2024-2029, at a 5% CAGR.

Gen Z is reshaping the coffee and tea industry, with distinct emerging preferences

Gen Z consumers are eager to try new products, looking for novel experiences and personalisation as a means to unwind and indulge themselves, and enhance their quality of life. This is evidenced in the rise of new product flavours, formats and channel experiences, providing them with an all-round consumption experience.

Wellness and sustainability features resonate highly with Gen Z consumers

Gen Z consumers are seeking value-added functionality in their coffee and tea. This goes beyond energy, and includes digestive health, focus and beauty. Furthermore, Gen Z consumers are increasingly conscious about sustainability and ethical sourcing, preferring to drink coffee and tea with ethical sourcing claims or recycled packaging.

Digitally savvy Gen Z increasingly regard social media as a trusted source

Social media platforms such as TikTok are increasingly important for Gen Z. This is driven by the growth of creator-led content and social media influencers, as well as Gen Z's digital savviness. They use social media to explore and engage with their coffee and tea, posting moments of shared expression and connection.

Gen Z consumers seek to replicate the cafe experience at home

As Gen Z consumers are increasingly curious about their coffee and tea, they seek to have a hands-on, personalised coffee experience. As such, they are investing in coffee machines to brew their own coffee at home, where they can control the brewing process, enabling experimentation and skill development.

Key Topics Covered:

Introduction

• Key findings
• A generation with growing influence and the power to shape trends and demand change
• Who is the Gen Z coffee and tea consumer?

Gen Z: winning the next wave of coffee and tea consumers

• Gen Z consumers seek more from hot drinks, prioritising novel experiences
• Gen Z's growing influence is reshaping emerging regions
• Gen Z's spending power impacted by high cost of living but set to grow in the long term
• Caffeine consumption remains relevant for Gen Z consumers amidst health concerns
• Gen Z consumers are reshaping the consumption of coffee and tea

Product preferences of Gen Z consumers are redefining coffee and tea culture

• Personalisation remains important for Gen Z's consumption of coffee and tea
• Cold coffee remains appealing due to appeal for personalisation and convenience
• Convenient formats are spilling over from cold coffee, exciting Gen Z consumers
• Coffee beyond caffeine: new functional positioning in the form of focus and beauty
• Fiboo is set to strengthen its competitive positioning by offering functional health claims
• Sustainable coffee increasingly valued, despite high cost of living
• Navigating product preferences of Gen Z consumers: Growth opportunities

Gen Z playbook: competitor strategies for crafting coffee and tea products

• Digitally savvy Gen Z consumers increasingly regard social media as a trusted source
• Identifying top flavours through social media is key to connect with Gen Z consumers
• Starbucks launches Coco Matcha and Coco Brew to appeal to Gen Z consumers
• Creative social media campaign serves to engage Gen Z consumers
• Cross brand collaborations serve to create novel experiences for Gen Z consumers
• Leveraging social media and influencers is critical to connect with Gen Z

New innovative channels are critical to connect with Gen Z consumers

• Gen Z's caffeine consumption is shaped by occasions and convenience
• Home consumption: Gen Z consumers seek to replicate their cafe experience at home
• Direct-to-consumer (D2C) serves as an attractive online platform for Gen Z
• Rise of digitalisation has fuelled the trend of online takeaway and delivery options
• Convenience stores serve as an alternative channel for a quick caffeine fix
• Coffee Banhada's unmanned drive-through stores offer Gen Z convenience
• Exploring new channels that appeal to Gen Z consumption occasions is important

Conclusion

• Recommendations/opportunities for growth
• Evolution of Gen Z consumption of coffee and tea

For more information about this report visit https://www.researchandmarkets.com/r/xcpssf

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