• The specialty coffee industry is at an inflexion point. While interest in high-quality, single origin lots is steadily rising, so is the demand for diverse, highly customised, and even non-coffee drinks.
• Chains like Blank Street are building their branding around matcha and limited-time offerings, achieving triple-digit sales growth as a result.
• It’s clear that the specialty coffee market is diversifying as consumer demands evolve and segment. Roasters are asking themselves whether they need to choose a distinct path or find ways to combine a variety of consumer preferences.
• Whichever direction they go in, roasters need to make sure they stay on brand and prioritise quality and consistency.

The specialty coffee industry is seeing noticeable splits in consumer preferences. While some coffee drinkers continue to demand single origin lots and unique processing methods, others have become more focused on customisation and experiential beverages. 

In some cases, coffee is simply one ingredient among many, or not included at all, as matcha and drinking chocolate gain popularity. Brands such as Blank Street and Knoops are expanding rapidly and reporting record sales by tapping into visually appealing drinks and limited-edition drops to draw in younger consumers.

As the specialty coffee industry continues to transform, roasters’ success will depend on their ability to anticipate and adapt to these cyclical shifts. Balancing the excitement of new trends with core quality will be key to enduring relevance.

I spoke with Francisco Gonzalez at Nomad Coffee, Morgan Eckroth at Onyx Coffee Lab, and Guzel Yildirim from The Barista Lab to learn more.

You may also like our article on why coffee quality is no longer a differentiator for roasters.

Coffee consumer preferences are changing considerably

The demand for high-quality coffee continues to grow the world over, with single origin lots and innovative processing methods at the forefront.

In June 2025, the National Coffee Association reported that specialty coffee consumption in the US had reached a 14‑year high. According to one of its most recent reports, 46% of adults in the US reported drinking a specialty coffee in the past day, up 84% since 2011 and surpassing past-day traditional coffee consumption at 42%. This milestone marks a shift led by younger consumers, with more than half of those aged 25 to 39 now opting for specialty-grade beans.

Demand is also growing in emerging, less mature markets. By 2030, India’s coffee market is forecast to double in value, with specialty coffee accounting for nearly 18% of this growth – a remarkable shift in a historically tea-drinking nation.

Simultaneously, however, we’re seeing a noticeable global trend towards customised, iced drinks (including non-coffee options) that indicate a shift away from “pure” specialty coffee.

Caffè Nero recently posted record first-quarter revenues of £166 million, up 9% year on year, fuelled by a 49% surge in iced beverage sales. Matcha has been a key driver in the UK chain’s success; it sold over 1.3 million matcha drinks during the first quarter of 2025 alone.

Brands like Blank Street have also propelled matcha into the spotlight, capitalising on soaring global demand. Flavoured iced matcha drinks, such as Carrot Cake and Banana Bread, now account for 50% of Blank Street’s US sales, underscoring their vast popularity. 

UK chain Knoops, meanwhile, has focused on premium drinking chocolate, offering more than 20 chocolate varieties and numerous add-ons, including herbs and spices, for both hot and cold drinks. The specialty drinking chocolate market is a promising bet, as it’s projected to reach almost US$5 billion in value by 2025. By combining the appeal of premium specialty chocolate with the trend of customised beverage experiences, Knoops has achieved rapid growth, expanding into Dubai and the US.

The cold, customised drink boom is generational. For many younger consumers, iced coffee is the default, serving as the ideal vessel for flavoured syrups, cold foam, sweeteners, and plant milks.

The NCA’s Spring report found that Gen Z consumers in the US now drink roughly as much iced coffee as hot – significantly more than any other demographic.

“They want a personalised, meaningful, and shareable experience. Coffee has moved from being a routine beverage to a form of self-expression, wellness, and lifestyle,” says Guzel, the founder and CEO of The Barista Lab, a specialty coffee shop in Geneva, Switzerland.

“We’ve seen post-pandemic mindset shifts; coffee is now a moment of self-care and ritual,” he adds. “Wellness culture has also gone mainstream, so functional drinks are now expected. The growing influence of social media means coffee has become a shareable experience, while tech-enabled customisation means infrastructure now allows for scalable personalisation.”

Catering to a split coffee market

Changing consumer preferences come at a pivotal moment for the coffee industry.

Green coffee prices have remained high and volatile since April 2024, reaching a record high in February 2025. Inflation has also dampened consumer spending, so rising retail coffee prices have only slowed growth in many cases.

Giants like Costa Coffee, currently on sale by Coca-Cola after a disappointing financial performance, have allegedly “lost the matcha generation”. This underscores the need to cater to diverse tastes – or risk taking a loss as competition intensifies.

“We’re seeing a split where coffee is either an occasional luxury – a refined ritual, meant to be savoured and shared – so fewer coffees but better experiences,” Guzel says. “Or, coffee as an ingredient – a base for wellness and lifestyle drinks, often customised with flavours or functional add-ons.

“This dual behaviour reshapes how we serve our audience,” he adds. “We focus on delivering meaningful, high-quality moments for those who value craft and care. But less coffee doesn’t have to mean less impact; it just makes each cup matter more.”

For many specialty coffee roasters and cafés, balancing quality and integrity with trend-driven consumer preferences has become difficult, especially as those preferences shift further away from “pure” coffee. High-quality coffee, once the focus of many menus, is becoming just one component among many – or not present at all in some cases.

Iced coffee and non-coffee drinks allow for higher margins through upcharges. As consumers increasingly opt for flavoured syrups, plant milks, and cold foam, operators can diversify their supply chain and are less at the mercy of fluctuations in coffee prices and, therefore, quality. In today’s volatile market, this is hugely beneficial for many coffee businesses.

“Providing unique beverage experiences and exclusive menu items is an achievable way for most cafés to set their offerings apart while also incentivising customers to come back repeatedly with signature menu changes,” says Morgan Eckroth, coffee content creator and the content marketing specialist at specialty coffee roaster Onyx Coffee Lab in Arkansas, US.

While black filter coffee and espresso are timeless classics, trend-driven, customised, and limited-edition drinks are increasingly taking centre stage, attracting new audiences.

But for specialty coffee roasters and cafés, this doesn’t have to mean compromise.

“Signature or customised beverages should be thoughtful and intentional in how they feature coffee,” Morgan explains. “The goal should ever be to hide the presence of coffee, but to transform it alongside carefully selected ingredients. 

“Brands should consider the flavour story they are trying to tell with each drink,” they add. “What is the drink’s flavour profile? The texture? The type of coffee is best suited to it?” 

Some, meanwhile, are choosing a strict focus on “pure” coffee expression that caters directly to their core audience.

“We’re seeing more and more people are willing to pay for exceptional coffees, not for customised beverages,” says Francisco, the head of coffee and co-owner of Nomad Coffee, a specialty coffee roaster in Barcelona, Spain. “We operate three coffee shops where we don’t offer personalised or mixed coffee drinks. There’s a growing appreciation for single origin and high-quality coffees, and that’s what we aim to highlight.

“Ultimately, every roaster should follow the path that aligns with their values and taste,” he adds. “Buy, roast, and serve what you genuinely love. There’s enough space in the market for different interpretations of what coffee can be.”

Keep up with industry trends or double down on values?

Trends have always shaped the coffee industry. But with the growing prevalence of social media and rising prices creating more cost-conscious, value-driven consumers, it seems their influence on specialty coffee is accelerating.

For some roasters, tapping into them could prove lucrative. A large part of the market is willing to pay more money for high-quality customised and limited-edition drinks, rather than a single origin pour-over.

“Signature drinks often offer customers a unique visual and sensory experience through presentation and garnishing, turning them into something that can be viewed more as a luxury and treat,” Morgan says. “While I fully believe that pour overs can and should offer those things as well, communicating that to a customer is a lot harder and requires more nuance than a theatrical signature beverage.”

Iced, customised drinks could provide temporary relief in a market defined by sustained high prices. However, there are still opportunities for roasters and cafés to strengthen their “pure” coffee offerings in more engaging, interactive ways that appeal to consumers seeking ritual.

“Omakase-style coffee services allow customers to have a full range of coffee experiences in one sitting, and at this point in time, I think those types of services are the best example of uncompromised coffee quality and signature drinks,” Morgan tells me.

Ultimately, there’s room for all kinds of experiences in specialty coffee, and recent market diversification symbolises this. While younger customers currently gravitate towards trending, stylish drinks, “others will continue seeking clarity and purity in their cup,” Francisco affirms.

“When customers taste something truly special and understand where it comes from, who produced it, and how it was processed, they build a deeper appreciation for the product,” he adds. “It’s not just about flavour, but also about connection and meaning. That’s what makes specialty coffee unique, and that’s how we keep people engaged with it.”

Trends come and go in any industry, and specialty coffee is no exception. Iced coffee, matcha, and drinking chocolate will continue to influence the market for the foreseeable future.

But given their proclivity to cycle through trends rapidly, younger generations may soon start to demand new flavours and beverage experiences. For roasters and coffee shops, constantly keeping up with these changes risks losing authenticity.

Instead, specialty coffee brands should focus on their core values. Whether that’s curating a solid pour over menu, serving eye-catching signature drinks, or both, it needs to feel genuine and true to who they are as a brand.

Enjoyed this? Then read our article on why it’s never been more important for roasters to invest in quality control.

Photo credits: Nomad Coffee, The Barista Lab

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