Gen Z prefers cold, sweet coffee with creamer

Gen Z is changing how Americans enjoy coffee. Many young people prefer cold, sweet coffee drinks instead of hot black coffee. About 85% of Gen Z coffee drinkers add creamer, compared to 70% of all coffee drinkers. This new preference is shaping the coffee industry. Nestle is responding by creating products like cold-dissolving instant coffee and flavored toppings to cater to these tastes. The coffee market is thriving. Daniel Jhung, president of Nestle’s USA beverage division, emphasizes the need for innovation to attract younger consumers. He notes that combining coffee with creamer reflects a strong consumer trend. Industry data shows that coffee and creamer are often bought together, 60% of the time. Nestle aims to improve how these products are displayed in grocery stores, making them easier to find for shoppers. There is also a growing excitement around coffee, visible in Super Bowl ads and overall coffee consumption, which reached a 20-year high last year. Nestle recently opened a new factory in Arizona focused on coffee and creamer. This facility supports the changing preferences of coffee consumers. The current trend, referred to as the "fourth wave of coffee," focuses on cold, convenient, craft, and customizable coffee. Jhung suggests that younger consumers enjoy creating personalized drinks, a trend reinforced during the pandemic. Instant coffee is also gaining popularity, especially among younger drinkers. Though still less common than other brewing methods, instant coffee saw a 31% increase in popularity last year. Nestle's Nescafe brand has been particularly successful, with the launch of new products boosting sales. Overall, the coffee industry is experiencing a renaissance, driven by a younger generation that sees food as a form of art. Nestle is investing heavily in new flavors and products to meet these evolving tastes. Jhung points out that discussions around coffee are vibrant and exciting among consumers today.