The Rise of Instant Coffee Among Young People
Young people looking to save money on their increasingly expensive morning caffeine habit are turning to a throwback: instant coffee. Sales of instant coffee rose 24% last year from two years prior and spending is growing the fastest among Gen Z, according to data from Nielsen. Consumers in their teens and twenties — who weren’t around when Folgers’ “The Best Part of Waking Up” jingle debuted in the 1980s — more than doubled what they spent on instant coffee in 2024 compared with 2022.
The Reason Behind the Spike
Driving the spike, in part, is the rising price of coffee. A 12-ounce cup of Starbucks brewed coffee in a midtown Manhattan cafe costs $3.45, while a cup of Starbucks instant coffee at home can net out as cheap as 36 cents. This significant price difference is making instant coffee a more attractive option for young people who are looking to save money without sacrificing their daily caffeine fix.
The At-Home Barista Trend
“Normally, you’d need to go buy an espresso machine or go to Starbucks and sell your left leg to get one of these drinks,” TikTok user Ethan Rode said in a video where he shared a recipe for making a brown sugar shaken espresso. His budget-friendly option can be made at home without any fancy machinery, and with just instant coffee, brown sugar, cinnamon, milk, water, and ice. The market has also exploded with higher-end options claiming to match or even surpass the kind of quality typically associated with whole bean or ground varieties.
Coffee Manufacturers Weigh In
Coffee manufacturers like JM Smucker Co., which owns the Folgers brand, and Nestlé S.A., say their instant lines are growing in part because more people are leaning into the at-home barista trend and trying to replicate viral drink videos found on TikTok and Instagram. Elisabeth Rosario said she switched to Starbucks instant coffee packs two years ago while living in Los Angeles as a means to cut down on cafe bills, and to reclaim the time she’d spend cleaning her French press.
Quality and Convenience
“I’m not trying to add more work in ways I don’t need when I feel like there are ways to make the experience better,” she said, adding that she finds the quality to be just as good as what she drank previously. Now the 38-year-old marketing consultant takes instant coffee packets with her when she travels for work. Smucker said it saw a 21% increase in sales among Gen Zs and millennials for Folgers’ instant category at the Consumer Analyst Group of New York conference in February.
Artisanal Coffee Companies
Instant has given artisanal coffee companies a way to expand their lineups with shelf-stable products that appeal to a broader swath of customers. Swift Coffee, a private-label manufacturer that specializes in turning whole coffee beans into the freeze-dried granules that can be dissolved in water, says its business is booming. The Lancaster, Pa.,-based firm makes instant products for several companies, including Intelligentsia, Partners Coffee, and Verve Coffee.
“I think we’re in the phase where it’s now accepted by the most progressive, leading specialty coffee companies,” Nate Kaiser, founder and chief executive officer of Swift, said about instant coffee. “It’s just assumed that if you’re going to be a roaster in 2025, it’s going to be on your retail offerings menu.”
Conclusion
In conclusion, the rise of instant coffee among young people is a trend that is driven by the increasing cost of coffee, the at-home barista trend, and the growing demand for convenience and quality. With the help of social media platforms like TikTok and Instagram, instant coffee has become a staple in many young people’s daily routines. As the coffee industry continues to evolve, it will be interesting to see how instant coffee fits into the market and how companies adapt to the changing consumer preferences.
Frequently Asked Questions
Q: What is driving the rise of instant coffee among young people?
A: The rising price of coffee, the at-home barista trend, and the growing demand for convenience and quality are driving the rise of instant coffee among young people.
Q: Which age group is driving the growth of instant coffee sales?
A: Gen Z and millennials are driving the growth of instant coffee sales, with a 21% increase in sales among Gen Zs and millennials for Folgers’ instant category.
Q: What are some benefits of instant coffee?
A: Instant coffee is convenient, affordable, and can be made at home without any fancy machinery. It also offers a range of flavors and options, including higher-end and artisanal varieties.
Q: How is the coffee industry adapting to the rise of instant coffee?
A: The coffee industry is adapting to the rise of instant coffee by offering a range of instant coffee products, including higher-end and artisanal varieties. Companies are also investing in social media marketing and partnering with influencers to promote their instant coffee products.
