Keurig Dr Pepper says Gen Z, Gen Alpha are reshaping coffee choices

Keurig Dr Pepper is pushing a blunt idea into the center of the coffee business: for Gen Z and Gen Alpha, a drink is increasingly a statement, not just a habit. In its State of Beverages 2026 Trend Report, released May 6 in celebration of National Beverage Day, the company said 58% of younger consumers choose beverages that reflect their identity, and its coffee-specific data shows where that shift is most visible, with 74% of Gen A/Z coffee occasions flavored, more than twice the 32% figure for Millennials+.

The second annual report, which Tim Cofer framed as Keurig Dr Pepper’s latest read on where the category is headed, organized the change into five named trends: Liquid Identity, Intentional Sipping, Rotation Reigns, Redefining Wellness and Digital Discovery. Taken together, those labels sketch a beverage market that is becoming more intentional, more emotional and more social. Drinks are functioning as self-expression, mood support, social currency and content, not simply as something people grab for caffeine or hydration.

That matters especially in coffee, where the category is splitting into more specialized lanes. The report’s data points directly toward the growth areas that have defined the recent coffee conversation: ready-to-drink coffee, cold coffee, functional coffee and flavor-heavy innovation. If a beverage can match a mood, signal a personality, deliver a function like mental focus or sustained energy, and still look good on a feed, KDP’s argument is that it has a better shot at repeat attention.

The 2026 report also says Gen A/Z consumers rotate more fluidly between flavors, functions and categories than older generations, and that their beverage occasions are more social and curated than automatic. Its infographics say Gen A/Z are more likely to seek function-forward beverages and are more influenced by social feeds and friends in what they drink. In another wellness graphic, KDP said Gen A/Z are more likely to prioritize mental focus and sustained energy, and are twice as likely to be “The Social Curator.”

KDP’s earlier 2025 report pointed in the same direction. It found that 72% of Gen Z tried new beverages monthly, compared with 44% of Americans overall. It also said 75% customized their beverages, more than half chose beverages to stand out, 46% were willing to pay more for drinks they considered premium, and 82% of consumers said their favorite beverages helped restore their mental health. That report drew on national surveys from Harris Poll, Ipsos and Morning Consult, along with KDP proprietary data.

Euromonitor has described Gen Z as digitally native, wellness-oriented, experimental and driven by personalization and experience in coffee and tea. KDP’s latest report lands in the same place: coffee is no longer just the morning cup, but a moving target shaped by identity, variety and the demand to make every sip say something.