- Gen Z’s “little treat culture” is fuelling a boom in customised coffee drinks
- 85% of Gen Zers add creamer, driven by aesthetics
- Once a symbol of status, Starbucks has given way to DIY coffee concoctions, matcha & lavender lattes as social currency
“THERE’s a lot of people complaining about inflation right now. ‘We need to get eggs down, we need to get gas down.’ As the father of teenage daughters, I need the cost of boba, matcha, and acai to go down – these are more expensive than college!”
These are the words of comedian Dustin Nickerson on a recent Instagram reel, joking that he’s tried to convince his daughters to drink much cheaper slurpees, which cost 99 cents, because he’s “boba broke.”
Why hasn’t it worked? Because unlike boba, matcha, and acai, slurpees aren’t teenage social currency. They aren’t necessities, they’re status symbols.
Once, carrying a Starbucks cup – tall, plastered with the green mermaid – was a status symbol, a badge of modernity. But that was yesterday’s currency. Then came the third wave microlot pourover – black, no sugar, and for young consumer crowds, apparently boring.
Today’s consumers, especially Gen Z, seek something far more bespoke and less brand-associated: iced lattes with activated charcoal, matcha frappes, or elaborate drinks garnished with edible flowers.
“Gen Z’s obsession with personalisation has pushed cafés to treat menus like build-your-own playlists: alternative milks, varieties of sugars and syrups and new combinations,” says Jaseem Abbas, Indian Barista Champion 2023, Coffee Consultant, and Data Scientist. “Baristas spend as much time curating a beverage to make it social media worthy.”
“Marketing has scrambled to keep pace. Static price sheets are out, and seasonal drops that feel more like streetwear pop-ups are in. Instead of long campaigns, brands release mood boards, teaser reels on TikTok and Instagram, then drop the drink the same week. The takeaway for café owners is that brewing coffee is only half the job; the other half is crafting a moment that lives on social media.”
Customisation has become key: a 2025 report shows 75% of young coffee drinkers opt for flavoured syrups, from toasted marshmallow to lavender. Gen Z’s “little treat culture” involves aesthetically pleasing customised cold brew coffees with cold foam and purple “Ube” lattes.
This trend towards personalised drinks is reshaping the coffee industry.
Instagram and TikTok overflow with baristas crafting “unique concoctions” that trend overnight. Coffee with spirulina, whipped coffee, blueberry coffee – Emma Chamberlain has led the way on social media with DIY “lazy” recipes in oversized mason jars and trendy customisation. With coffee shop prices skyrocketing and at-home consumption on the rise, Gen Z – the loneliest generation – is whipping up lattes from the comfort of home.
And for those who can afford to go out for treats, boba, iced matcha lattes, and acai bowls – though often outrageously expensive – are all the rage, and all about signalling identity and belonging.
Even ads lean into this shift: one from Nestlé highlights espresso concentrate as part of the “fourth wave” of coffee, aimed squarely at Gen Z’s thirst for cold, convenient, and customisable drinks.
The question is less about whether you can afford coffee, but whether you can afford to be left out – especially when it comes to younger generations wanting to belong.
The power of social currency
Social currency for individuals is what you “spend” when you share something that makes you look good – at dinner parties, on feeds, or in peer groups. In fashion, tech, or hospitality, it’s created by exclusivity, aesthetics, or perceived insider-ness.
Social currency for brands is “influence currency” – the extent to which people share the brand information or lifestyle. It gives likes, shares, and follows monetary value. For instance, Apple commands premium prices not just due to specs, but because owning one signals you’re part of a thoughtful, elite community.
In the U.S. and other places, Lululemon yoga pants, Supreme hoodies, Oatly milk, a Disneyland annual pass, Peloton or Kinfolk subscription, or a set of Le Creuset pots and pans all tick the same social currency box; you pay for the social status symbol premium.
Coffee, too, has become infused with this same dynamic. A custom latte isn’t just a drink – it’s a statement. Owning it publicly or snapping it digitally amplifies the self-narrative: I’m creative, I’m in the know, I’m trendy.
In this way, drinks like “iced filter with whipped Mont Blanc” or croissant-cups (like Melbourne’s viral offerings) aren’t so much consumed as they are shown. But it’s not just in the U.S, Australia, or Europe.
Coffee takes on the role of social currency in different ways across the globe, including in India, a strong emerging coffee consumer market. While a cup of tea in India might cost on average 10-50 Indian rupees, a cup of coffee will cost closer to 200-400 Indian rupees, according to Jaseem. This makes drinking coffee an intentional choice, and an investment.
“Young Indians have used coffee as a powerful sign of modern-day identity,” says Jaseem. “Unlike homely tea culture, coffee, and specifically specialty coffee, is considered to be an indicator of personality, aspiration, and belonging in society.”
“Just like choosing your brand of sneaker or mobile phone, the café you visit and how you order your coffee says something about yourself. In India, it’s becoming a social class in itself among the young.
Coffee is both intimate and public, and that’s what makes it unique. Home brewing is an exercise of self-gratification or efficiency, while a social occasion over coffee is a sign of cultural comfort. Coffee is also more accessible than fashion or technology because India is a coffee-producing country. There has been a tremendous increase in the amount of coffee pop ups, home brands, and parties witnessed in India over recent years.”
This rise in coffee as social currency parallels broader generational patterns. Gen Z, armed with $360 billion in disposable income and “digitally native” habits, uses beverages to show rather than just drink. Fast Company reports that 85% of Gen Zers add creamer – compared to just 70% of coffee drinkers overall – driven by aesthetics and customisation. And TikTok is flooded with home-brew setups.
In that context, coffee and other coffee shop beverages become a medium for identity, creative expression, and group belonging.
Where are we headed now?
Legacy brands like Starbucks, once the pinnacle of social cachet, now pale beside fast-moving Gen Z influencers and DIY coffee creators. Meanwhile, home-brew and RTD options are exploding: 70% of consumers now brew at home daily, per Deloitte’s 2024 global study, driven by cost, customisation, and convenience.
Brands are racing to tap into this opportunity. Nestlé’s Espresso Concentrate, launched with viral TikTok campaigns, openly targets the young “craft & customisable” demographic – 18 to 24 year-olds.
Cafés, no longer just spots to grab coffee, are challenged to become experience hubs – places offering great drinks, but also Insta-worthiness and communal warmth. Many are doubling down on visual menus that cut through the noise, pop-ups, and collaborations.
“To remain relevant, coffee shops and roasters need to value storytelling in a true form, digital agility, and community engagement,” says Jaseem. “Gen Z don’t want a brand to speak to them; they want a brand to converse with them. That means investing in real voices, be it your baristas on Instagram Reels, collaborations with micro-influencers, or stories that pull back the curtain on sourcing, sustainability, or brewing practices and new gear.”
“Loyalty is no longer points on an app, it’s emotional and experiential. Brands have to reward curiosity, creativity, and participation. Behind-the-scenes experiences, or co-created drinks with community input are what spark interest in the new generation.
And cafés need to offer more than coffee. Pop-up art shows, brewing classes, DJ coffee vs. booze, painting classes, comedy night, these all promote connection and place cafés in the creative context Gen Z is forging. Basically, in order to connect with them, you can’t just sell coffee. You must sell culture and create a community.”
Tapping into social currency directly could give brands the edge. This could mean hosting digital content creators, offering seasonal storytelling experiences, or harnessing exclusivity, for example.
For roasters and retailers, data matters. Social currency gives brands premium positioning, but only if they understand what consumers want, when and how. That requires investment in social listening, content strategy, and digital loyalty platforms that reward brand evangelism. The number of US Gen Z who say they’re members of a loyalty programme has jumped 15% year-on-year, but now they want app-based reward systems.
Coffee has transcended form, and seems to be moving towards becoming a currency of identity and cultural allegiance for many, especially new generations. This isn’t new – from traditional coffee rituals in Ethiopia to Italian espresso bars and even Starbucks cups scrawled with misspelt names, coffee has always been more than a product, and part and parcel of culture and community.
But as customisation, DIY culture, and social media converge, and generations change, coffee is evolving both as a product and as a social currency, and the industry is responding in kind. It’s an evolution that demands agility, and an understanding of coffee’s role in social expression.
Coffee Intelligence
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