The Surprising Rise of Instant Coffee Among Gen Z

Young consumers are turning to a classic product to save money on their morning caffeine fix: instant coffee. Recent data from Nielsen reveals that sales of instant coffee surged by 24% in the past year compared to the previous two years, with the most significant increase seen among Generation Z. In 2024, individuals in their teens and twenties spent more than double on instant coffee compared to 2022.

This rise can be attributed in part to the escalating prices of traditional coffee. For instance, a tall brewed coffee from Starbucks in downtown Manhattan costs approximately $3.45, while a cup of Starbucks instant coffee can be prepared at home for as little as $0.36.

Many young people are eager to replicate trendy barista-style drinks at home without the hefty price tag. TikTok user Ethan Rode, for example, shared a budget-friendly recipe for a homemade espresso drink using instant coffee, brown sugar, cinnamon, milk, water, and ice--all without the need for expensive coffee machines.

Furthermore, the market for premium instant coffee options has expanded, with products claiming to match or even exceed the quality of whole beans or ground coffee. Major coffee brands like Nestlé report that their instant coffee offerings are growing as more consumers aim to recreate viral beverage trends seen on social media platforms like TikTok and Instagram.

In the past three years, Nestlé has also seen a boost in its instant coffee segment, which includes brands like Nescafé and Starbucks at Home. Last year, the company introduced a range of premium instant espresso products in the U.S., which have reportedly resonated well with culturally diverse millennials. As noted by industry experts, instant coffee is now being embraced by leading coffee producers, becoming a staple on menus in 2025.