Gen Z's Thirst for Innovative Flavors and Formats is Driving Specialty Coffee Consumption – CoffeeTalk

Specialty coffee’s growth is notably driven by a younger and diverse consumer demographic, a trend toward espresso and cold beverage formats, and an increasing emphasis on flavor, customization, and innovation, as reported by the National Coffee Association’s 2026 NCDT Specialty Coffee report. Approximately 50% of U.S. adults now consume specialty coffee daily, surpassing traditional coffee at 42%. Specialty coffee consumers, who seek variety and wellness benefits, engage more extensively with a range of beverages compared to traditional coffee drinkers, including vitamin-enhanced water, flavored waters, and various teas like matcha and chai.

The term ‘specialty coffee’ has evolved, now encompassing a variety of products, formats, and consumption experiences beyond conventional quality definitions. According to the NCA, it includes premium brewed coffee from high-quality beans, espresso-based drinks like lattes and cappuccinos, non-espresso beverages such as cold brews and frozen blends, and ready-to-drink formats.

Young adults, particularly those aged 25 to 39, lead in specialty coffee consumption, with 69% reporting consumption in the past week, the highest among all age groups. Even younger adults aged 18 to 24 show a preference for specialty over traditional coffee. In terms of demographic diversity, Hispanic Americans are highly engaged, with 67% consuming specialty coffee weekly, followed closely by 64% of Asian Americans. Regionally, the Northeast shows the highest specialty coffee consumption at 64%, followed by the West at 61%, the South at 60%, and the Midwest at 57%.

Espresso-based drinks are a significant growth driver, with 45% of Americans consuming these beverages in the past week, and 29% in the past day — the highest recorded levels. Lattes, cappuccinos, and straight espresso are essential anchors in this segment. Meanwhile, cold coffee formats have also gained popularity, with 60% of specialty drinkers consuming cold coffee in the last week, marking a 6.6 percentage point increase from the previous year. Non-espresso cold beverages, including cold brew and nitro coffee, have seen 17% past-day penetration.

Flavor is a vital component of the specialty coffee experience. According to the report, 35% of consumers identify flavor as what makes coffee “specialty,” with indulgent flavors such as chocolate and caramel being most favored. However, there is also a willingness among consumers to explore non-traditional flavor profiles, suggesting avenues for innovative flavor development.

Customization is central to the specialty coffee experience, both at home and in cafés. A significant portion of drinkers — over 50% — add sweeteners or syrups, with 60% customizing their drinks with whiteners like milk or cream. The intersection of specialty coffee and functional beverages presents new opportunities. Emerging products like mushroom coffee have potential for growth, as about 30% of all consumers and 41% of specialty coffee drinkers express openness to trying such ingredients, linking the specialty coffee trend with functional beverage consumption.

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