The evolving coffee culture: How younger generations are redefining beverage choices

Gen Z has a different relationship with coffee compared to older generations. Only 47% of Gen Z drinks coffee daily, which is significantly lower than Millennials (65%) and Baby Boomers (over 70%). Instead of sticking to a daily ritual, Gen Z's coffee habits are shaped by trends and occasions. They’re more inclined towards iced and ready-to-drink varieties, favoring flavor and fun over caffeine content. It’s a more casual approach to coffee, where they prioritize experience and novelty over routine.

Young consumers today are health-conscious and environmentally aware, which clearly reflects in their beverage choices. Here’s a look at some of the popular alternatives they prefer over coffee:

1. Tea - especially Matcha & organic options
   With matcha’s antioxidant benefits and lower caffeine levels, it’s no surprise that it’s a hit among younger consumers. Organic herbal teas are also making waves, aligning with the wellness values of Gen Z.
2. Functional beverages for health & wellness
   Drinks like kombucha and adaptogenic blends are catching on as Gen Z looks for health benefits in every sip. Functional waters with added vitamins and minerals align perfectly with the wellness trend.
3. Energy drinks for a quick boost
   While coffee might be on the backburner, caffeine is still in demand. Energy drinks are popular among Gen Z, providing that quick boost they need for their busy lives.
4. Plant-based milk alternatives
   Driven by environmental consciousness, plant-based milks are becoming staples, both in coffee and as standalone drinks. They offer a sustainable alternative to dairy, which resonates deeply with young consumers.
5. Smoothies and juices for a nutritious kick 
   With a focus on balanced diets, smoothies and juices have become essentials. These beverages pack essential vitamins and can replace a traditional breakfast or serve as a refreshing midday pick-me-up.

The European beverage market is flourishing across various segments, thanks to the evolving preferences of Gen Z and Millennials. Coffee remains popular, projected to grow from USD 47.88 billion in 2024 to USD 58.14 billion by 2029. But alongside coffee, the market for organic and functional beverages is booming, expected to reach USD 42.9 billion by 2026. Younger generations are particularly drawn to these wellness-focused options that offer adaptogens and vitamins.

Meanwhile, plant-based milks are on the rise, with an expected market size of USD 5.4 billion by 2028, driven by a commitment to sustainability. Energy drinks and adaptogenic beverages are also thriving, with the European energy drink market growing at 7.2% annually. Finally, the market for smoothies, juices, and mocktails is expanding rapidly, as more consumers seek alcohol-free, flavor-rich options in line with the "sober curious" movement.

At Selecta, we’re in tune with these changing tastes. While we continue to serve beloved coffee experiences, we know that variety matters. Our partnerships with brands like Aquablu, TeaQuiero, and Vitamin Well help us provide a diverse portfolio of beverages that reflect today’s values of health, wellness, and sustainability.

Our expertise is further enhanced by the Pelican Rouge Coffee Roaster (PRCR). PRCR’s in-house Research & Development team is continually exploring new flavours, alternative ingredients, and innovative beverages to ensure our offerings align with emerging trends. For example, we’ve introduced flavored cappuccinos that bring a creative twist to the classic coffee experience. Beyond coffee, our PLNT line features plant-based options such as oat and almond milk, meeting the rising demand for non-dairy alternatives among environmentally conscious consumers. 

By expanding our offerings through PRCR, we’re not only providing delicious and diverse beverages but also aligning with the shift towards sustainable, health-focused, and alternative drinks. This enables our clients to cater to a wider array of preferences, ensuring that their employees and guests have access to beverages that suit various tastes and dietary needs. Through PRCR’s innovation and dedication to quality, Selecta stands ready to support a full spectrum of beverage preferences, ensuring we meet the evolving demands of younger generations.

As the beverage market evolves, we’re excited to lead the way. Selecta isn’t just adapting—we’re actively shaping the future of beverage choices. By offering an array of products beyond coffee, we help our clients meet the needs of a new generation. Gen Z and Millennials are redefining the beverage landscape, and Selecta is here to ensure your offerings are always one step ahead, catering to every taste and preference.

With our keen understanding of the market, Selecta is more than just a coffee provider. We’re your partner in crafting a beverage experience that aligns with today’s expectations and anticipates the needs of tomorrow.