Gen Z drives Starbucks’ drink innovation

Only one of five beverage concepts survive the company’s testing process.

Starbucks is ramping up efforts to win over Gen Z in the Asia-Pacific region, but most of its drink ideas never reach stores.

Out of about 80 beverage concepts developed annually by Starbucks Asia Pacific, only one of five survives the company’s internal testing process. The rest are dropped after rounds of prototyping, sensory evaluation, and customer feedback, according to Gladys Chan, director of product and marketing for the region.

“This generation gravitates toward cold, customisable drinks with strong visual appeal, especially those that feel premium or playful,” Chan told Retail Asia. “So, we’ve continued to innovate in platforms such as our Iced Shaken Espresso and Refreshers, whilst also evolving our plant-based menu, including customisation options such as plant-based milk.”

Starbucks’ signature Frappuccino, a favourite amongst younger consumers, now makes up almost 30% of the brand’s regional sales.

To maintain that appeal, Starbucks tests every new drink idea for more than just taste. Each concept must meet strict criteria around scalability, clarity of marketing, operational feasibility, and supply chain constraints.

Chan said about half of the drinks are cut early—sometimes even if they taste great. “Some ideas look great on paper, but can’t scale across markets due to regional preferences, sourcing or operational constraints.”

The beverage pipeline is shaped by customer data, market trends, and barista insights from across the company’s 15 markets in the Asia-Pacific region. This regional diversity makes it difficult to create a single product that resonates widely.

Still, Chan said drinks that strike the right balance between “creativity, customer connection, and commercial confidence” make it through. Visual impact also plays a critical role, since most customers encounter new drinks through digital channels.

“We also tap into cultural moments to spark joy like our Hello Kitty 50th anniversary collaboration,” Chan added, referring to the limited-time Apple Pie Cream Frappuccino, inspired by the character’s favourite dessert.

Starbucks recently launched the Birthday Confetti Ube Cream Frappuccino to mark 30 years of its iconic Frappuccino.

Younger consumers are also outspending older ones. GlobalData’s first-quarter 2024 Consumer Hot Topics Survey found that 31% of Gen Z and 39% of Millennials described their coffee spending as “very high” or “quite high,” compared with 25% of Boomers and 18% of the Silent Generation.

This shift has encouraged Starbucks to expand its cold and customised options. Its latest offerings for summer include the Golden Caramel Churro Frappuccino, topped with cinnamon and crunchy churro pieces, and the Muscat Grape Cream Frappuccino, featuring grape jelly for a fruit-forward twist.

Across Asia, competition is heating up. Malaysia’s ZUS Coffee plans to open 200 locations in Southeast Asia, while brands like Fore Coffee and Flash Coffee in Indonesia, and Oriental Kopi also in Malaysia are scaling up with the help of fresh investment.

Chan said Starbucks would continue to explore seasonal ingredients, plant-based variations, and regionally inspired flavours as it tests future drink concepts.