In brief
At 21, Elaine Ling says Starbucks is her go‑to only for cold drinks, not hot coffee. Gen‑Z’s taste for customizable, frothy iced beverages is reshaping the coffee industry, driving a shift from traditional hot brews. Data shows the "cold" category now makes up more than 70% of Starbucks’ U.S. sales, and other fast‑food chains are following suit. Social media hype – like TikTok’s Unicorn Frappé – fuels foot‑traffic rises and brands partner with influencers to tap this audience.
Elaine Ling, a 21‑year‑old with homes in New York and California, admits she only visits Starbucks for cold drinks—"I’m more of a refresher girl," she said at a BBC interview.
Her sentiment echoes a rising trend: Gen‑Z consumers across the U.S. prefer customizable, iced beverages over traditional hot coffee. According to Euromonitor, younger drinkers find value in tailoring their drink to a moment or mood, and are willing to pay a premium for size, layers, and visual appeal.
Starbucks, founded over five decades ago, now sells more than 75% of its beverages as cold drinks—think iced fruit‑flavoured mixes, protein smoothies and “dirty sodas” that mix syrup, foam and juice. This pivot has helped the company recover from weak sales and now represents more than 70% of its U.S. beverage revenue.
The trend is amplified by social‑media hype. Starbucks’ TikTok‑famous Unicorn Frappé, a pastel‑coloured blend topped with whipped cream and crunchy toppings, saw a 44% rise in foot traffic during its three‑day launch, according to Placer.ai.
Fast‑food chains are chasing the same sweet spot. McDonald’s, Chick‑fil‑A and Taco Bell now offer fruit‑based refreshers, coffee‑adjacent options and other caffeine‑free cold drinks aimed at under‑25 shoppers. Dunkin’ also experiments with protein‑boosted beverages and collaborates with influencers like Kylie Jenner to promote limited‑time releases.
International data supports the shift. UK shoppers under 25 buy over 60% of their drinks cold, while those over 55 do so only 30% of the time. Over 70% of all purchasers buy cold drinks year‑round, with the trend magnifying in summer.
Tirtha Dhar, a marketing professor at the University of Guelph, calls cold drinks the "sweet spot" for Starbucks’ bottom line. The infinite customisation through foam, flavour and protein gives the brand a lucrative, almost pure‑profit niche.
