Beverages: Gen Z’s cheaper lattes: TikTok recipes and instant coffee
- InsightTrendsWorld
- 4 days ago
- 9 min read
Why it is the topic trending:
Rising Cost of Brewed Coffee: The increasing price of coffee from cafes is making it less affordable for young people.
Gen Z's Focus on Saving Money: Young adults are looking for cost-effective alternatives for their daily caffeine needs.
TikTok and Social Media Influence: Viral recipes on platforms like TikTok are showcasing how to make cheaper coffee drinks at home using instant coffee.
Resurgence of a "Throwback" Item: Instant coffee, often associated with older generations, is being rediscovered by younger consumers.
Growth in High-End Instant Coffee Options: The market for instant coffee has expanded to include higher-quality versions that appeal to consumers seeking better taste at a lower cost.
Overview: The article discusses the growing trend of instant coffee consumption among Gen Z, driven by the rising cost of brewed coffee from cafes like Starbucks. Young people are turning to instant coffee as a much cheaper alternative, often following budget-friendly recipes shared on platforms like TikTok to create popular drinks at home without expensive equipment. The market for higher-quality instant coffee is also expanding, attracting consumers who want both affordability and good taste.
Detailed findings:
Sales of instant coffee rose 24% in the past year compared to two years prior, with the fastest growth among Gen Z.
Gen Z consumers more than doubled their spending on instant coffee in 2024 compared to 2022.
The rising price of brewed coffee is a key driver, with a Starbucks brewed coffee in Manhattan costing $3.45 versus a homemade cup of Starbucks instant coffee potentially costing as little as 36 cents.
TikTok users like Ethan Rode are sharing recipes for making popular drinks like brown sugar shaken espresso at home using instant coffee and basic ingredients.
The market for higher-end instant coffee is growing, with manufacturers like JM Smucker Co (Folgers) and Nestlé SA seeing increased sales due to the at-home barista trend inspired by social media.
Smucker reported a 21% increase in sales of Folgers' instant coffee among Gen Z and Millennials.
Nestlé has seen growth in its instant coffee segment, including Nescafé and Starbucks at Home, and has launched premium instant espresso products targeting multicultural Millennials.
Artisanal coffee companies are also offering instant coffee lines.
Elisabeth Rosario switched to Starbucks instant coffee to save money and time cleaning her French press, finding the quality comparable.
Coffee companies see Gen Z and Millennials as consumers who love coffee, want to customize drinks, and are interested in trying new things.
Swift Coffee, an instant coffee manufacturer, reports its business is booming, supplying to specialty coffee companies like Intelligentsia and Verve Coffee.
Key takeaway: The rising cost of cafe coffee is prompting Gen Z to embrace instant coffee as a budget-friendly and convenient alternative, often inspired by social media recipes for at-home versions of popular drinks, leading to a resurgence of instant coffee with both mass-market and higher-quality options gaining popularity among younger consumers.
Main trend: The Budget-Driven Resurgence of Instant Coffee Among Young Adults
Description of the trend (please name it): The Instant Latte Liberation. This trend describes the increasing adoption of instant coffee by Gen Z as a cost-effective way to enjoy coffee, particularly lattes and other specialty drinks, at home. Driven by the rising prices of cafe coffee and the influence of social media recipes that simplify homemade coffee creation, this trend is liberating young consumers from expensive coffee shop habits and fueling a new appreciation for instant coffee, including higher-quality artisanal options.
What is consumer motivation: The primary consumer motivation is to save money on their daily coffee habit, as the cost of purchasing brewed coffee from cafes is becoming increasingly prohibitive for many young adults. They are also motivated by the convenience of making coffee at home quickly and without specialized equipment, and by the desire to replicate trendy drinks they see on social media in a budget-friendly way.
What is driving trend:
Rising Cost of Cafe Coffee: The significant price difference between cafe coffee and homemade instant coffee is a major driving factor.
Economic Pressures on Young Adults: Gen Z may be particularly price-sensitive due to student loans, entry-level salaries, and the overall cost of living.
Influence of Social Media (TikTok and Instagram): Viral recipes and "dupes" for popular coffee drinks using instant coffee have made it a trendy and accessible option.
Improved Quality of Instant Coffee: The availability of higher-end, artisanal instant coffee options caters to consumers who want better taste than traditional instant coffee.
Desire for Customization: Making coffee at home with instant coffee allows for greater control over ingredients and customization, aligning with the personalization trend.
What is motivation beyond the trend: Beyond saving money, Gen Z's embrace of instant coffee might also reflect a DIY culture and a desire to be resourceful. Reclaiming the time spent going to coffee shops and the effort of cleaning traditional coffee makers are additional motivators for some. There might also be a nostalgic element as they discover a product used by previous generations in a new context.
Description of consumers article is referring to (what is their age?, what is their gender? What is their income? What is their lifestyle): The article specifically focuses on Gen Z consumers (in their teens and twenties) and also mentions Millennials (in their late twenties and thirties) as showing similar trends. The primary motivation is saving money, suggesting this trend is particularly relevant to those who are budget-conscious, likely including students, young professionals, and those with moderate incomes. The influence of TikTok and Instagram indicates a digitally engaged demographic. Their lifestyle likely includes a desire for convenience and the tendency to be influenced by online trends.
Conclusions: The rising cost of cafe coffee is driving a significant trend among Gen Z and Millennials towards instant coffee as a cheaper and convenient alternative. Social media is playing a key role in popularizing homemade versions of trendy coffee drinks, and the availability of higher-quality instant options is further fueling this resurgence.
Implications for brands:
Instant Coffee Manufacturers: There is a significant opportunity for both mass-market and artisanal instant coffee brands to cater to the growing demand from younger consumers.
Cafe Chains: Need to be aware of the price sensitivity of Gen Z and potentially consider offering more affordable options or highlighting the value proposition of their in-store experience.
Related Products (Milk, Syrups, Ice): Brands selling these items may see increased demand as more people make coffee drinks at home.
Implication for society: This trend could lead to a shift in coffee consumption habits, with a larger proportion of young people making coffee at home, potentially impacting the foot traffic and sales of coffee shops. It also highlights the influence of economic factors on consumer choices.
Implications for consumers: Gen Z and Millennials will have access to a much more affordable way to enjoy coffee, including their favorite specialty drinks. It also empowers them to be more resourceful and creative in the kitchen.
Implication for Future: The trend of instant coffee's popularity among young adults is likely to continue as long as the cost of cafe coffee remains high and social media continues to drive at-home beverage trends. The stigma traditionally associated with instant coffee may further diminish as quality improves and younger generations embrace it.
Consumer Trend (name, detailed description): The Economical Caffeine Seeker. This trend describes consumers, particularly younger adults, who are actively seeking out the most affordable ways to satisfy their caffeine needs, often turning to DIY solutions and cost-effective alternatives to expensive coffee shop purchases.
Consumer Sub Trend (name, detailed description): TikTok-Driven DIY Beverage Culture. This sub-trend highlights the significant role of social media platforms like TikTok in popularizing homemade versions of trendy drinks, empowering consumers to become at-home baristas using simple and affordable ingredients and methods.
Big Social Trend (name, detailed description): The Rising Cost of Living and Consumer Resourcefulness: This trend reflects the broader societal issue of increasing living expenses, prompting consumers to find resourceful ways to manage their budgets and make their money go further, including in their everyday food and beverage choices.
Worldwide Social Trend (name, detailed description): Global Coffee Consumption and Affordability: The consumption of coffee is a global phenomenon, and the issue of affordability and accessibility impacts consumers worldwide, leading to regional and demographic variations in how coffee is consumed.
Social Drive (name, detailed description): The Desire for Value and Financial Prudence: The underlying social drive is consumers' inherent desire to get the best value for their money and to make financially responsible decisions, especially during times of economic uncertainty or when facing high costs for everyday items.
Learnings for brands to use in 2025 (bullets, detailed description):
Instant Coffee Brands: Capitalize on the renewed interest by marketing to younger consumers through social media and highlighting the affordability and quality of their products.
Cafe Chains: Consider offering more affordable menu options, loyalty programs, or DIY kits for customers to make drinks at home.
Ingredient Suppliers: Promote cost-effective ingredients that are popular in DIY coffee recipes.
Strategy Recommendations for brands to follow in 2025 (bullets, detail description):
Instant Coffee Brands: Invest in product innovation to further improve the quality and variety of instant coffee offerings, including options that cater to specific drink recipes. Engage with TikTok and Instagram creators to promote instant coffee recipes.
Cafe Chains: Develop strategies to retain budget-conscious customers, such as offering lower-priced brewed coffee or subscription models. Create DIY kits with pre-portioned ingredients and instructions for popular drinks.
Final sentence (key concept) describing main trend from article: The increasing cost of cafe coffee is fueling a trend among Gen Z to embrace instant coffee as an economical and convenient alternative, often inspired by social media for creating affordable at-home versions of popular lattes and specialty drinks.
What brands & companies should do in 2025 to benefit from trend and how to do it: In 2025, brands and companies should capitalize on the "Instant Latte Liberation" by:
Instant Coffee Manufacturers: Innovating with new flavors and quality levels of instant coffee, specifically targeting the preferences of younger consumers and promoting its use in popular at-home latte recipes through social media marketing.
Cafe Chains: Adapting their pricing strategies or offering at-home solutions like DIY kits and branded instant coffee to cater to the budget-conscious Gen Z demographic.
Final note:
Core Trend: The Instant Latte Liberation: Gen Z's budget-driven shift towards instant coffee for affordable at-home lattes.
Core Strategy: Emphasize Affordability and DIY Convenience in Coffee Solutions: Providing cost-effective options for young adults to enjoy coffee at home.
Core Industry Trend: The Democratization of Specialty Coffee: Instant coffee is making specialty-style drinks more accessible to a wider range of consumers.
Core Consumer Motivation: Seeking Affordable and Convenient Caffeine Fix: Young adults are prioritizing cost savings and ease when it comes to their daily coffee.
Final Conclusion: The resurgence of instant coffee among Gen Z, driven by economic factors and social media influence, presents a significant opportunity for brands to innovate and offer affordable and convenient coffee solutions that resonate with this influential consumer segment in 2025 and beyond.
Core Trend Detailed: The Instant Latte Liberation
Description: The Instant Latte Liberation describes the increasing adoption of instant coffee by Gen Z as a cost-effective way to enjoy coffee, particularly lattes and other specialty drinks, at home. Driven by the rising prices of cafe coffee and the influence of social media recipes that simplify homemade coffee creation, this trend is liberating young consumers from expensive coffee shop habits and fueling a new appreciation for instant coffee, including higher-quality artisanal options.
Key Characteristics of the Trend (summary): This trend is marked by Gen Z increasingly using instant coffee as an affordable and convenient alternative to expensive cafe drinks, often inspired by social media recipes.
Market and Cultural Signals Supporting the Trend (summary): Rising sales and spending on instant coffee among Gen Z, the significant price difference between cafe and homemade instant coffee, and the prevalence of DIY coffee recipes on platforms like TikTok and Instagram all indicate this trend.
How the Trend Is Changing Consumer Behavior (summary): Gen Z consumers are increasingly making coffee at home using instant coffee instead of frequenting coffee shops, and they are becoming more resourceful in replicating popular cafe drinks with simple ingredients.
Implications Across the Ecosystem (For Brands and CPGs, For Retailers, For Consumers, summary):
For Brands and CPGs: Presents a significant opportunity for instant coffee manufacturers to innovate and market towards younger consumers, as well as for related product suppliers (milk, sweeteners).
For Retailers: Suggests a need to stock a wider variety of instant coffee options, including higher-end brands, and potentially the ingredients for popular DIY coffee recipes.
For Consumers: Provides a much more affordable way to enjoy coffee and specialty drinks, offering convenience and the potential for customization.
Strategic Forecast: The trend of instant coffee's popularity among young adults is likely to continue as long as the cost of cafe coffee remains high and social media continues to drive at-home beverage trends. The stigma traditionally associated with instant coffee may further diminish as quality improves and younger generations embrace it.
Final Thought: The rising popularity of instant coffee among Gen Z, driven by economic factors and social media influence, presents a significant opportunity for brands to innovate and offer affordable and convenient coffee solutions that resonate with this influential consumer segment in 2025 and beyond.
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