Gen Z is fundamentally altering coffee consumption trends by favoring cold, sweetened beverages over traditional hot coffee. Roughly 85% of Gen Z coffee drinkers use creamer, a significant jump compared to overall coffee drinkers. In response, brands like Nestle are innovating rapidly, launching products like cold-dissolving instant coffee and flavored toppings. The merging of coffee and creamer sales signifies growing demand, as they're often co-purchased. Nestle's president notes the unique connection between these products parallels classic American combinations like peanut butter and jelly, indicating a shift towards bundled offerings to enhance consumer experience.
"We've done a lot of things in cold coffee the last two years to really meet this need of Gen Z and young millennials," Daniel Jhung, president of Nestle's USA beverage division, tells Fast Company.
The coffee world is 'booming' and the opportunity to innovate, while still providing value for a broad spectrum of consumers, makes for a fun time to be in this industry, says Jhung.
Industry data from Circana backs this up: Coffee and creamer are co-purchased together 60% of the time versus 40% of the time for milk and cereal.
Or, as Jhung likes to quip: 'What's more Americana than peanut butter and jelly or milk and cereal? It's actually coffee and creamer.'
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