Image credit: Euromonitor International
AUTHOR: Nathanael Lim, APAC Insights Manager- Drinks
Coffee consumption has traditionally been large in developed regions like Europe and North America, where retail brewed consumption per capita is 127.7 litres and 98.5 litres, respectively, as of 2024. Nevertheless, the potential for growth is huge in emerging markets of Asia Pacific and the Middle East, as they house the largest Gen Z population. Moreover, income growth among Gen Z is expected to accelerate. This presents opportunity for brands to adapt to the evolving preferences of Gen Z consumers, building long-term relationships by offering affordable, personalised and novel experiences.
Source: Euromonitor Voice of the Consumer: Health and Nutrition Survey, fielded February 2025
Gen Z consumers desire multiple values in their consumption
Gen Z consumers are not just buying beverages – they’re curating experiences. This comes in the form of personalised coffee and tea options that reflect their identity, mood and lifestyle.
Personalisation is key because Gen Z consumers have a wide range of options to choose from. This ranges from iced caramel macchiatos to matcha lattes, as well as limited editions and seasonal offerings. Trending flavours are discovered on social media, such as matcha or coconut latte, generating excitement and turning drinks into shareable moments for Gen Z consumers.
Source: Social media buzz over matcha and coconut latte on TikTok, Source: TikTok, Yahoo
Moreover, at-home brewing is gaining traction among Gen Z, with coffee machines becoming tools for experimentation and self-expression. This trend is driven by both cost-saving motives and a desire to replicate café experiences at home.
Gen Zs are becoming more health-conscious and seek functional coffee, exploring benefits beyond energy such as digestive health, focus and beauty. Products like mushroom coffee and collagen-infused blends are tapping into Gen Z’s holistic wellness goals. Gen Zs are also deeply concerned about sustainability. They are more open than older generations to lab-grown and “beanless” coffee alternatives, reflecting their willingness to embrace innovation for environmental benefit. Brands like Atomo Coffee and start-ups in Singapore, France and the US are exploring lab-cultivated options.
Social media is central to Gen Z’s discovery and engagement with coffee and tea. Platforms like TikTok and Instagram are not just marketing tools – they’re cultural touchpoints. Gen Z relies on influencer content and brand accounts for product information, with authenticity and transparency being non-negotiable. Brands are leveraging this by launching visually appealing, “Instagrammable” products, which appeals to Gen Z. Starbucks’ Coco Matcha and Coco Cold Brew are prime examples of aligning product innovation with social media trends. Collaborations with influencers and celebrities, such as Nespresso’s partnership with The Weeknd, are helping brands connect with Gen Z on a deeper level.
As Gen Z mature, their preferences will continue to shape the coffee and tea industry. Brands that invest in understanding and engaging Gen Z today will be best positioned to thrive in the future. Key strategies include launching customisable options from flavours to formats, leveraging social media, tapping into new channels to meet their demand for convenience, as well as adapt to local trends. This is especially seen in high-growth markets like India and China tailoring product offerings to local preferences and income levels.
