The 5th Wave is characterised by how coffee businesses, young and old, are striving to create engaging and aspirational experiences for today’s connected consumer. The growing aspirations for coffee aren’t just limited to well-established markets. Countries where there hasn’t traditionally been a strong or historical coffee culture have started to leapfrog the traditional Waves of evolution and are creating their own coffee-drinking rituals.

These “new retail” coffee chains have in common their target audience: Gen Z and Millennial consumers who are open to new ways of drinking coffee and caffeinated drinks, are tech and social media savvy, and are eager to experience unique flavours and unorthodox ingredients.

Creating new coffee rituals needs to address different consumptions, usage, occasions, segments, and target audiences. Coffee is also an interesting category in the sense of formulation. And it is the combination of all of these factors that brands can leverage to enhance the consumer experience, and also to really differentiate themselves.

These attitudes with respect to coffee means that the market is set to explode even further as new consumers enter the fold. The global coffee market (including at-home and out-of-home consumption) is expected to be worth US$132.13 billion in 2024 and US$166.39 billion by 2029, growing at a CAGR of 4.72% during this period. Coffee will continue its dominance as new consumers fit the drink into their different needs and occasions. It has even smitten tea-guzzling countries around the world, thanks to the growing café culture and the beverage’s appeal with young adult consumers. Its trendy, aspirational quality and versatility to blend well with a slew of flavours and plant-based milks has helped it along.