Spilling the tea on the $790b hot drinks market in 2025

Our latest research into the coffee and tea habits of US and UK consumers reveals sharp generational divides, evolving brand loyalties, and a surprising appetite for innovation. 

From indulgence-driven Gen Zers to the premium-seeking 35–44s, the results offer a fresh brew of insights for marketers and insights professionals navigating a $790 billion market. 

Take a deeper dive into the data over on our interactive dashboard. 

Quick summary

• Coffee consumption increases with age in both the US and UK — just 56–58% of 18–24s regularly drink coffee, compared to over 80% of older groups.
• Young Americans (18–24) are drinking fewer hot drinks overall, with 38% saying they’re drinking less than a year ago.
• Younger Brits are drinking more, especially 25–34s — 54% say they’re consuming more hot drinks than 12 months ago.
• Supermarkets dominate as the go-to for buying hot drink supplies, used by 62% in the US and 70% in the UK.
• Coffee shops and specialty stores appeal more to younger buyers — 17% of 25–34s in the UK buy from cafés vs 10% average.
  Flavored or specialty drinks are the #1 hot drink trend, cited by 46% of Americans and 45% of UK 25–34s.
• Brand loyalty is fragmented, with no strong correlation to age — 35% of consumers say they’re loyal to trusted brands.
• Sustainability is less of a priority for Gen Z, with just 22% of UK 18–24s naming it a top interest.

US results

Coffee drinking increases with age

Our new survey data shows that coffee consumption increases with age. Just under three fifths (58.5%) of people aged 18-24 regularly consume coffee, compared with the national average of 77%. 

And the percentage of coffee drinkers increases for each subsequent age group:

• 25–34: 77%
• 35–44: 81%
• 45–54: 81%
• 55–64: 81%

Where people buy their hot drinks

The youngest age group – those aged 18-24 – are significantly more likely to consume hot drinks in spaces where they pay for them. A sizable 64% buy their hot drinks at coffee shops, and 43% from a store – this compares with the national average of 47% and 34% respectively. 

People aged 35–44 over-index for getting their hot drinks either from their workplace or through a subscription/direct-to-consumer. Three in 10 (31%) people in this age group get theirs from work (compared to a US average of 23%) and 16% get theirs online (compared to a US average of 9%).

When we asked about where people tend to buy ingredients or equipment to make hot drinks at home, supermarkets and grocery stores came out top by a long way:

• Supermarkets or grocery stores: 62%
• Coffee or tea shops: 11%
• Online marketplaces (e.g. Amazon): 10%
• Department stores or home goods stores: 7%
• Directly from brands online: 3%

Downward trend in young people consuming hot drinks

The 18–24 age group is drinking fewer hot drinks compared to 12 months ago, according to our research. 

Of the overall US population, 23% said they’re drinking fewer hot drinks, compared to a hefty 38% of people aged 18–24. 

Meanwhile the older group aged 35–44 has said they’re drinking more hot drinks. Our data shows that 44% are drinking more than they were a year ago, compared to a US average of 33.5%. 

Brand loyalty and age don’t correlate

You might assume that brand loyalty grows with age, but our data shows that it’s not as straightforward as that. 

While the oldest groups in our research (55+) are more likely to stay loyal to specific brands they trust (43.1% and 48.9% respectively), there’s no clear outlying group among younger Americans.

Just over 35% of the overall population say they’re loyal to specific brands they trust. Here’s how brand loyalty breaks down by age:

• 33% of 18–24s 
• 31% of 25–34s
• 34.5% of 35–44s
• 33% of 45–54s

Buying based on convenience seems to be a key driver for 18–24s – 21% said this is their attitude towards buying hot drinks. Meanwhile a statistically significant 34.5% of 35–44s said they like to try new brands and flavors regularly. 

Specialty flavors are a winner

When asked what innovations or trends in hot drinks Americans would most like to see, flavored or specialty varieties came out top. Nearly half of respondents are interested in this kind of variety in their hot drinks. 

The full list of innovations and the percentage of the population who are interested in them are: 

• Flavored or specialty varieties: 46%
• Ready-to-drink or instant premium options: 37%
• Health-boosting ingredients: 33%
• Sustainable packaging or ethical sourcing: 23%
• Non-caffeinated or functional alternatives: 16%
• Plant-based/dairy-free options: 14%

There’s a specific outlier in the data, where we see that people aged 35-44 are more interested than most in ready-to-drink innovations – 48% noted this, compared to the US average of 37%. 

Meanwhile when we look at the gender split we see that men (28%) are more interested in sustainable packaging than women (18%). 

UK results

Brits drink more coffee as they get older

Our research into UK hot drink trends shows that coffee popularity increases with age. 

While three quarters of the UK population say they regularly drink coffee, this dips to 56% for people aged 18–24. There’s then a sharp +20 percentage point increase for 25–34-year-olds (the next age group up), 77% of whom regularly drink coffee.

The percentages then slowly increase as you go through the age groups, rising to 83% for people aged 55–64. 

Supermarkets are where it’s at

Brits overwhelmingly buy ingredients and equipment for hot drinks at supermarkets or grocery stores – 70% buy this way. 

We see supermarket shopping fall to 61% for 18–24s and to 59% for 25–34s, signalling some potentially interesting new approaches to shopping among these younger groups. 

An interesting outlier is that people aged 25–34 are more likely to buy ingredients or equipment from a coffee or tea shop – 17% said this, compared to the UK average of 10%. This could be especially useful to coffee shops looking to expand their offering to include more home-brewing products.

Which Brits are consuming more hot drinks?

Overall just under two fifths of Brits (39%) say they’re consuming more hot drinks than they were 12 months ago. There’s a rough age correlation here, with younger people generally saying they’re drinking more, and older people drinking less. 

More specifically, people aged 25-34 are showing the biggest uptick – 54% of this age group say they’re consuming more hot drinks. 

It’s worth noting, however, that although a sizable 46% of 18-24s say they’re drinking more, a significant 31% also say they’re consuming fewer hot drinks. So there are nuances within this age range that are worth exploring if you’re trying to tap into this segment of Gen Z. 

Brand loyalty still matters

Just over a third (35.5%) of Brits say they’re loyal to specific brands they trust when it comes to hot drinks. 

However, it’s worth noting that more than a quarter (26%) like to try new brands and flavors regularly. When you consider that the UK hot drinks market in 2025 is estimated at $14.42 billion, this means that a whopping $3.75 billion is up for grabs to challenger brands.

How much does sustainability matter?

People aged 18–24 don’t seem to care as much as you might think about sustainability when it comes to hot drinks. Just 22% of this youngest group say sustainability and ethical sourcing are one of the top trends they’re interested in – this compares to a UK average of 32%. 

Consumers aged between 25–34 seem to be interested in almost everything. Their responses show statistical significance in how much more interested they are than other groups in:

• Health-boosting ingredients: 51% 
• Ready-to-drink or instant premium options: 48%
• Flavored or specialty varieties: 45%
• Plant-based/dairy-free options: 25%

Indulgence is key to young people

Our research shows that people aged between 18–24 consider hot drinks to be a comforting treat they can indulge in, to a greater extent than other age groups. More than two fifths (41%) of 18-24s said this, compared to the UK average of 31%. 

It stands to reason, based on this, that the youngest group is less likely to consider hot drinks an essential part of their everyday routine. And our data shows this – just 18% said this is the case. This compares to the oldest group (55–64s), almost half of whom (48%) do consider hot drinks to be an everyday ritual. 

Interestingly, a significant percentage of people aged 25–34 consider hot drinks to be part of their wellness/health routine. Nearly a quarter (24.5%) said this, compared to the UK average of 17%. 

Take a deeper dive into the data over on our interactive dashboard.