Coffee is losing the race for the next generation

You understand the future of coffee differently when you start with a simple truth. Young people drink less coffee than older adults, and the gap is growing.

Research from Deloitte, Euromonitor, and Mintel, amongst others, all point in the same direction. People aged eighteen to twenty five are choosing energy drinks at a rate that should worry anyone who cares about the future of coffee. If you want to understand why young people drink less coffee, you need to accept the reality that the category has competition that looks nothing like tea or matcha. The real competition is fast, sweet, and ready to drink.

How energy drinks took the lead

Young people drink the fewest weekly cups of coffee of any adult group. What are they drinking instead?

Energy drinks.

Energy drinks offer simplicity. They do not require equipment. Or brewing. And they offer clear flavours that feel sweet and familiar.

The caffeine arrives quickly. A person aged 18 to 25 can buy one drink, open it, and keep moving. Coffee can seem slow by comparison. It asks for tools, steps, and decisions. To be clear, young consumers are not rejecting coffee. They’re choosing convenience.

Culture also plays a part. Energy drinks appear inside the environments where this age group already spends time. Gaming. Fitness. Social media. Music. YouTube creators. When a product shows up naturally in these spaces, it becomes part of identity. Coffee sits further away from these cultural moments. That distance matters.

A financial reality that shapes behaviour

Money plays a direct role.

The International Labour Organization reports that younger workers face wage stagnation in many regions. And Deloitte shows that younger adults switch beverage categories quickly when prices rise.

When budgets tighten, they reach for drinks that feel affordable and predictable. An energy drink requires one purchase and no equipment. A specialty coffee routine often requires a grinder, a brewer, filters, and repeated spending. Each layer adds friction.

When you are 18 to 25, friction influences your choices more than flavour notes ever will.

Where coffee lost control of the conversation

Specialty coffee spent the last decade speaking to itself. It built detailed taste languages, complex brewing guides, and a culture that often felt closed to newcomers. That worked for people who already cared, but it did not help a 19 year old who just wants something cold, sweet, and energising.

While coffee focused on depth, energy drinks focused on simplicity. Coffee built rituals. Energy drinks built habits.

At the same time cafés became more expensive, which pushed many young adults toward cheaper routines. Young people spend less time in cafés and buy more drinks to go. The café is now an occasional stop, not a daily anchor.

When a category moves out of someone’s daily routine, loyalty fades.

The strategic choice every coffee business must make

Coffee businesses need to decide who they want to serve.

If a company wants to appeal to an older demographic, it can continue to build its identity around tradition, premium flavour profiles, and deeper storytelling. Nothing wrong with doing that. And many brands will succeed on that path.

If a company wants to appeal to a younger demographic, it needs to shift its priorities. It needs clearer communication, simpler choices, lower prices, and flavours that feel immediately familiar. It also needs to meet younger adults in the spaces where they already spend time.

In my experience, a business cannot appeal strongly to both groups at once. It must choose.

What coffee businesses can start doing now

Create familiar flavours

People aged 18 to 25 respond to sweetness and comfort. Offer flavoured lattes, flavoured cold brews, and approachable blends.

These choices act as bridges rather than compromises.

Respect smaller budgets

Offer smaller bags and consistent entry blends. Provide simple brewing guides built around basic equipment. Show this age group that good coffee can exist inside their budgets.

Make brewing simple

Use visual guides, short videos, and clear recipes. Remove pressure from the process.

When results feel achievable, confidence builds quickly.

Build competitive cold offerings

Cold formats dominate this demographic. Offer flavoured cold brews and ready to drink options. Keep the flavours predictable and consistent.

Communicate plainly

Use direct language. Focus on flavour, feeling, and routine. Avoid technical depth until curiosity grows naturally.

Enter younger cultural spaces

Work with campus groups, gaming communities, gyms, and local creators. Energy drinks dominate these spaces because they participate in them.

Coffee has the opportunity to claim a share of that visibility.

Create a welcoming tone

People aged eighteen to twenty five dislike being corrected. Celebrate their choices. Build a culture that feels open instead of judgmental.

Trust grows from ease, not pressure.

Young adults drink less coffee because another category fits their lives more easily

Coffee does not lose its future because of one trend. It loses its future when it fails to understand the people who will shape it.

Young adults drink less coffee because another category fits their lives more easily. When the coffee world listens to that reality, there’s a way forward. When it ignores it, the category risks drifting behind.

The question is simple. Will the industry adjust to the next generation, or will it sit back and hope they come around?

FAQ

Why are people aged eighteen to twenty five drinking less coffee

Verified research shows they choose drinks that feel easier, sweeter, and cheaper. Deloitte, Euromonitor, NCA, Mintel, and Nielsen IQ all report this pattern.

Are young adults rejecting coffee

No. They are choosing beverages that match their routines with fewer steps. Their decisions are practical rather than emotional.

Can specialty coffee compete with energy drinks

Yes. Through cold formats, simple guidance, direct communication, and pricing that respects tighter budgets.

Is coffee losing cultural relevance

In some spaces, yes. Young adults spend more time in environments where energy drinks already hold strong visibility.

Will this age group return to coffee as they age

There is no guarantee. Habits formed early often continue through adulthood. Coffee must build relevance now.