As American coffee consumption habits evolve, analysts predict a shift towards higher-priced and premium specialty coffees, driven largely by Generation Z. Over the past decade, daily coffee drinkers in the U.S. have remained steady, but the amount consumed has decreased. Specialty coffee shops have outpaced other quick-service restaurants, with a significant rise in daily specialty coffee drinkers from 15% in 2009 to 45% in 2023. Gen Z's preference for customizable and premium coffee is expected to drive market growth for the next two decades. This trend could benefit companies like Starbucks and Dutch Bros., the latter of which has seen a notable stock increase. Despite Starbucks' recent struggles with sales and competition, both companies are focusing on technology and new products to attract customers. Analysts see potential for growth as younger generations enter their prime coffee-drinking years.
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