Closable lid opens up chilled coffee sales to Gen Z

New research lifts the lid on shopping habits and attitudes toward soft drinks among 16 to 27-year-olds

A closable lid which enhances on-the-go portability is key to unlocking the revenue potential of Gen Z super-consumers in the ready-to-drink (RTD) chilled coffee category. By eliminating spillage and providing the option to enjoy the product over a period of time, a closable lid reduces wastage and increases convenience. Nearly half (45 per cent) of 16 to 27-year-olds say it’s a top requirement when choosing a soft drink, putting it above brand loyalty (17 per cent) and even the purpose of the drink itself e.g. caffeine hit or refreshment (25 per cent).

The findings are the result of a survey delving into Gen Z shopping habits and attitudes to soft drinks. Commissioned independent chilled coffee brand, Arctic Coffee, the research confirms the extent to which Gen Z consumers are driving 10.7 per cent MAT growth of the category. More than half (53 per cent) of Gen Z shoppers enjoy a RTD chilled coffee at least once a week and for 43 per cent of the generation, it’s a twice-weekly treat.

As a demographic always on the go, consumption is motivated by being on the move. Train journeys (29 per cent), car drives (27 per cent), walking (24 per cent) and commuting (21 per cent) inspire most RTD chilled coffee purchases and in turn 81 per cent of Gen Z shoppers are attracted to packaging with a closeable lid.

The research also confirms that Gen Z consumers care when it comes to the origin of RTD chilled coffee brands. 20 per cent of shoppers think being an independent British brand is the most important selling point when deciding which product to purchase, compared to just 12 per cent who favour global brand recognition.

“Gen Z’s love RTD chilled coffee – they are some of the category’s biggest fans and offer retailers significant revenue potential," said Abigail Kelly, Head of Marketing & Insight of Arctic Coffee. "It goes without saying that taste (68 per cent) and price (67 per cent) are high on their agenda but the ease of being able to pick up a chilled coffee while on the go and enjoy it as and when wanted, is a key feature that retailers should match in priority. This is a young, energetic generation and packaging needs to complement their lifestyle.

“The whole Arctic Coffee product range is made at Devonshire-based Crediton Dairy with Rainforest Alliance Certified coffee beans and features closeable lids. We match the pace of customers for on-the-go consumption and a choice of when – and when not – to sip.”

Key retailer advice to attract Gen Z shoppers

• Stock products with closable lids: Gen Z consumers want to be able to pick up and put down their RTD chilled coffee. Packaging with closeable lids provides the flexibility and ease required.
• Hero independent British brands: Sustainable-minded young consumers are supportive of homegrown brands that add value. Promoting British-made products with a lower carbon footprint compared to global counterparts will tap into their sense of place and appeal to environmental principles.
• Offer a range of flavours: Gen Z consumers purchase on impulse so convenience is key. They want to have a range of options in easy reach and be able to quickly choose a flavour.