Keurig Dr Pepper says Gen Z wants coffee that signals identity

Keurig Dr Pepper’s newest beverage-trend report lands with a blunt message for coffee: young drinkers are not just buying caffeine, they are using drinks to say something about themselves. In its State of Beverages 2026 Trend Report, released May 6 and timed to National Beverage Day, the company said 58% of Gen Alpha and Gen Z respondents choose beverages that reflect their identity, and younger consumers are twice as likely as Millennials+ to pick brands that signal something about them. Tim Cofer, Keurig Dr Pepper’s CEO, framed the shift the same way, saying beverages are increasingly being used to signal identity, mood and values.

The coffee piece is where the numbers get most useful. KDP said 74% of Gen A/Z coffee occasions are flavored, compared with 32% for Millennials+. That gap explains why coffee shelves keep bending toward dessert notes, fruit notes and limited-edition flavor drops instead of staying locked in plain roast logic. The report also said 58% of Gen A/Z consumers are more likely to choose drinks based on mood or occasion, and 63% want beverages that feel entertaining or inspiring, versus 54% of Millennials+. For roasters and retailers, that is not a marketing slogan. It is a buying cue. The drinks that win are the ones that give a customer a reason to reach beyond the default.

The social side matters just as much. KDP said 65% of Gen A/Z drink beverages with food, 59% with others and 42% away from home. That makes coffee part of a wider routine, not just a solo caffeine transaction at the kitchen counter. The same report said 71% of Gen A/Z are looking for function-forward beverages, which is why the category is being pulled in two directions at once: indulgence on one side, utility on the other. Coffee now has to work as flavor, mood and function in the same cup.

KDP’s 2025 report pointed to the same behavior from a different angle. It found 52% of Americans reach for coffee first thing, 59% would rather skip breakfast than miss caffeine, and 73% of adults 21 and over would give up alcohol at night before skipping morning coffee or caffeine. It also said 72% of Gen Z try new beverages monthly and 75% customize their beverages. Put together with the 2026 findings, the message is hard to miss: coffee is still the anchor, but the winning products are the ones that let Gen Z and Gen Alpha rotate flavors, functions and occasions without losing the identity signal they want in the cup.