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Gen Z’s Shift to Cold, Customisable Drinks Reshapes the Global Beverage Market

A growing number of Gen Z consumers are moving away from traditional hot coffee in favour of cold, personalised beverages, prompting major coffee chains to rethink their product strategies. According to a BBC report, Starbucks, once synonymous with hot coffee, now sells cold drinks for around three-quarters of its beverage sales. Popular options include iced fruit-based refreshers, protein drinks and “dirty sodas”, which combine syrups, foam and juices.

Gen Z Look For Self-Expression in Drinks

Industry experts say younger consumers increasingly view beverages as a form of self-expression rather than simply a source of caffeine. Customisation, visual appeal and perceived functionality are key purchase drivers. Although Gen Z tend to be price-conscious, many are willing to pay a premium for drinks that feel unique, larger in size or offer health-related benefits.

Social media is accelerating this trend. Viral products such as Starbucks’ limited-edition Unicorn Frappuccino demonstrated the power of visually striking beverages, reportedly driving a significant spike in store visits during its short sales period. Competitors including Dunkin’ Donuts are responding with protein-enhanced and highly customisable cold drink offerings aimed at younger consumers.
 

How Shall Global Beverage Traders Adapt to Evolving Gen Z Tastes?

The beverage industry is evolving from a coffee-centric model to an experience-driven market where customisation, functionality and social-media appeal increasingly influence purchasing decisions. For suppliers, this creates opportunities across ingredients, packaging, equipment and product innovation. The “infinite personalisation” through foams, flavours, and protein are “almost pure profit” for the value chain.

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