Specialty Coffee Takes the Lead as Gen Z Shifts Preferences

Specialty Coffee Takes the Lead as Gen Z Shifts Preferences

Over the past decade, coffee consumption patterns in the U.S. have experienced a notable shift, driven largely by the changing preferences of Gen Z. While the overall number of daily coffee drinkers has remained stable, the volume of coffee consumed has slightly declined. However, specialty coffee, characterized by premium ingredients and the ability to customize orders, has gained significant traction, particularly among younger consumers. BofA analysts predict this trend will continue as Gen Z enters its peak coffee-consuming years, potentially sustaining the growth of specialty coffee shops for decades. This shift bodes well for brands like Starbucks and Dutch Bros., with Dutch Bros. seeing a notable stock rise. Starbucks, on the other hand, faces challenges like declining sales and increased competition. Both companies are focusing on technology and new product offerings to attract and retain customers. The emphasis on specialty coffee reflects a broader trend towards quality and customization in the coffee industry.

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