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Cold drinks now dominate Starbucks sales as Gen Z opts for customisation

Starbucks reports that three out of every four drinks sold are now cold, a trend driven by younger consumers who prefer customisable options over traditional hot coffee.

  • Starbucks states that cold drinks account for three out of every four sales.
  • Consumers under 25 in the UK purchase more cold drinks than hot drinks when out of home, with over 60% of their purchases being cold.
  • Data analytics firm Placer.ai reported a 44% increase in foot traffic at Starbucks during the brief availability of its Unicorn Frappuccino.

Starbucks, founded over five decades ago as a coffee shop, now states that three out of every four drinks it sells are cold. This shift is influenced by younger consumers, particularly Gen Z, who increasingly choose cold, customisable beverages.

This trend is not limited to the US. In the UK, shoppers under 25 buy more cold drinks than hot when out of the home, with over 60% of their drink purchases being cold. This contrasts with shoppers aged 55 and older, for whom only 30% of purchases are cold.

The preference for cold drinks is not just a seasonal habit, with over 70% of people buying them year-round and more than 80% doing so in the summer months. Other chains, including Dunkin' Donuts and fast-food outlets like McDonald's, are also introducing protein-boosted, fruit-based, and other non-caffeine cold options to appeal to this audience.

Customisation is a key factor, giving younger consumers a sense of control. While price-sensitive, Gen Z is reportedly willing to pay more for drinks that feel special, larger, or functional, with visual appeal also playing a role in justifying higher prices.

Why this matters: The growing preference for cold, customisable drinks among younger consumers is significantly impacting beverage sales and product development strategies for coffee chains and fast-food outlets.

What this means for you: You may notice an increasing variety of cold and customisable drink options available at coffee shops and fast-food restaurants.

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