STiR coffee and tea magazine

40 STiR coffee and tea | 2026 Quarter 1 Spring (Mar/Apr/May) T Gen Z: Reprogramming Tea Consumption Perspective by Billy Dietz No longer just a beverage — Gen Z consumers crave tea experiences that offer functional benefits, vibrant colors and unique flavors, such as the Super Shroom Matcha from DAVIDsTEA. Photo credit: DAVIDsTEA Social media content is the new currency — Gen Z consumers crave fun experiences and new beverages to post about. he North American tea industry is experiencing a generational shift that's catching many established brands off guard. Gen Z consumers are driving the next wave of tea growth, but their preferences diverge sharply from Millennial patterns that have shaped industry strategy. This rep- resents a fundamental reimagining of what tea means, how it's consumed, and why it matters. In China, Gen Z accounts for 71% of the growth of experience-based beverages, according to Coffee Intelligence. The bubble tea market is pro- jected to reach over $5 billion by 2033, according to Botrista. The Experience Economy Takes Center Stage Where Millennials approach tea as a wellness ritual, Gen Z treats it as social currency. They're creating content, sharing experiences, and using beverage choices to communicate identity. This distinction has massive implications for product development, pricing, and marketing strategies. Freya Fang, brand manager at heytea, notes that the brand "has consis- tently used collaborations and in-store experiences as key entry points to con- nect with younger consumers. In recent years, the brand has partnered with a wide range of global and culturally influential names, including FENDI, adidas, W Hotels, alexanderwang, Sandy Liang, Hello Kitty, POP MART, Wicked, and Yayoi Kusama." These partnerships combine co-branded drinks, themed merchandise, and customized store environments. heytea's flagship lab store in New York's Times Square creates spaces designed to encourage discovery and social sharing. This experience-first mindset explains why Gen Z spending patterns differ from previous generations. They'll spend less per transaction than Millennials do on premium loose-leaf tea but will happily pay for a bubble tea flight or a visually striking matcha creation. Tea flights and cold brew preparations, once seen as unnecessary complica- tions, are now expected offerings. The Health Paradox Gen Z is incredibly health-conscious, gravitating toward functional teas with added benefits and prioritizing mental wellness support. Functional benefits such as stress relief, energy balance, and digestive health are primary purchase drivers. Kelly Miller, product development and inno- vation manager at DAVIDsTEA, sees this in the company's data: "Our Gen Z community seeks more traditional wellness tea blends but are also particularly drawn to products that highlight func- tional ingredients: think mushrooms, nootropics, and other adaptogens or ingredients targeting fo- cus and clarity, relaxation and stress management, and clean-label energy." Yet their definition of healthy is broader and more pragmatic than brands expect. They'll choose a lower-caffeine option to control energy

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