Forget Starbucks coffee - Gen Z like their drinks ice cold

Gen Z consumers are increasingly favoring cold, customizable beverages over traditional hot coffee, prompting coffee chains to adapt. Analysts note that while price-sensitive, this demographic is willing to pay more for drinks that appear special, larger, or offer functional benefits, with visual appeal and size justifying higher costs. This preference for cold drinks is seen as a form of self-expression and identity signaling, similar to fashion choices. Consumers are reportedly paying for the experience and presentation, akin to purchasing an affordable luxury item, which helps brands like Starbucks maintain premium pricing. Social media, exemplified by the viral Unicorn Frappuccino, also influences these purchasing decisions.