Younger coffee drinkers are finding relief from rising caffeine costs by reviving a classic staple: instant coffee. Sales of instant coffee saw a remarkable 24% increase in 2024 compared to two years prior, with the sharpest spending growth recorded among the Gen Z demographic, according to recent data from Nielsen. This trend is not merely a nostalgia trip; it speaks to a growing desire for budget-friendly alternatives in an era where coffee shop prices are hard to swallow.
A 12-ounce cup of brewed Starbucks coffee in midtown Manhattan, for instance, now costs $3.45, while the same cup made from instant coffee can be brewed at home for just 36 cents. Such stark differences are catching the attention of consumers in their teens and twenties, who have more than doubled their spending on instant coffee in 2024 compared to two years earlier.
"Normally, you’d need to go buy an espresso machine or go to Starbucks and sell your left leg to get one of these drinks," remarked TikTok user Ethan Rode in a viral video. He shared a budget-friendly recipe to make brown sugar shaken espresso at home using just instant coffee, along with a few simple ingredients. This shift towards DIY coffee-making is fueled by social media, where platforms like TikTok and Instagram have ignited a passion for home-brewed caffeinated concoctions.
Elisabeth Rosario, a 38-year-old marketing consultant, started using Starbucks instant coffee packs two years ago to manage her café expenses and streamline her coffee-making process. "I’m not trying to add more work in ways I don’t need when I feel like there are ways to make the experience better," she said, reflecting on her preference for the convenience and quality that instant coffee offers. Now, she carries instant coffee packets with her whenever she travels for work, showcasing just how integrated this trend has become in daily routines.
According to data from the Consumer Analyst Group of New York, JM Smucker Co., which owns the well-known Folgers brand, reported a 21% boost in sales among Gen Zs and millennials in their instant coffee category at the February 2025 conference. "These are consumers who have a deep love of coffee, want to be able to customize their drinks and are interested in trying new things," noted Rob Ferguson, Smucker’s senior vice president of coffee and procurement. This indicates not just a financial choice but a shift in how younger consumers engage with their favorite beverages.
Nestlé, another key player in the coffee market, has similarly witnessed substantial growth in its instant coffee segment over the past three years. The company, which includes popular brands such as Nescafé and Starbucks at Home, introduced more premium instant espresso products last year, aimed specifically at younger consumers who are more open to diverse flavor profiles and convenient brewing methods.
Artisanal coffee companies are also honing in on this trend, leveraging the demand for quality and accessible instant coffee. Swift Coffee, based in Lancaster, Pennsylvania, specializes in transforming whole coffee beans into freeze-dried granules that easily dissolve in water, serving as a rising alternative for both established and new coffee brands. Nate Kaiser, the founder and CEO of Swift, expressed that the coffee industry is now recognizing the viability of high-quality instant coffee products. "I think we’re in the phase where it’s now accepted by the most progressive, leading specialty coffee companies," he stated, suggesting that instant coffee is no longer a second-class option but an attractive retail offering for coffee enthusiasts.
This blend of tradition and innovation could see instant coffee transform into a stunning comeback story in the industry. For many young coffee lovers, the convenience, affordability, and increasing quality of instant coffee continues to entice them in their rush to embrace new brewing methods while still enjoying their cherished caffeine fix. As consumer preferences evolve, instant coffee may very well solidify its place back in trend, proving that sometimes, a simple solution can be the most appealing.
