Specialty coffee’s growth is propelled by a younger and more diverse consumer base, a shift toward espresso and cold formats, and an increasing focus on flavor, customization and innovation, according to the National Coffee Association’s 2026 NCDT Specialty Coffee report.
Nearly half of US adults are consuming specialty coffee daily, surpassing traditional coffee at 42%, according to NCA. Specialty coffee drinkers – who are seeking variety, flavor and perceived wellness benefits – also engage more broadly with other beverages compared to traditional coffee drinks, according to the report. For example, it notes that they seek, vitamin-enhanced water, flavored water, coconut water and teas such as matcha, chai and bubble tea, according to the report.
What defines ‘specialty’ coffee today?
“Specialty coffee” evolved beyond traditional quality distinctions and into a range of products, formats and consumption experiences.
NCA defines the category broadly to consist of premium brewed coffee made from higher-quality beans, espresso-based beverages such as lattes and cappuccinos, non-espresso drinks like cold brew and frozen blended coffee, and RTD formats sold in cans or bottles.
Younger consumers are reshaping the category
Younger consumers, particularly those aged 25 to 39, are leading specialty coffee adoption, with 69% reporting consumption in the past week, the highest penetration of any age cohort, according to NCA.
Even the youngest adult consumers (aged 18 to 24) skew toward specialty, outpacing traditional coffee consumption. Older consumers, by contrast, are more likely to stick with traditional formats, according to the report.
The report indicates that the specialty consumer is diverse. Hispanic Americans stand out as one of the most engaged audiences, with 67% reporting specialty coffee consumption in the past week, followed by 64% of Asian American consumers.
Regionally, past-week specialty coffee consumption is strongest in the Northeast (64%) and the West (61%), Midwest (57%) and the South (60%).
Espresso drinks and cold formats fuel growth
Espresso-based beverages are driving the category with 45% of Americans consuming these formats in the past week and 29% drinking them in the past day, the highest level recorded, according to the report. Lattes, cappuccinos and straight espresso anchor this segment, highlighting the role of barista-style beverages shaping coffee consumption.
At the same time, cold coffee is driving consumption even during winter months, according to NCA. The report shows that 60% of specialty coffee drinkers consumed cold coffee in the past week, a 6.6 percentage point increase from the prior year, while non-espresso cold beverages such as cold brew, frozen blended drinks and nitro coffee reached 17% past-day penetration.
Flavor and customization define the coffee experience
Flavor plays an integral part it in how consumers experience their specialty coffee with 35% saying flavor is what makes a coffee “specialty,” according to the report.
Indulgent flavors like chocolate, caramel or brown sugar and vanilla rank the highest. Yet, specialty coffee drinkers are open to non-traditional flavors like spice, floral and herbal notes, suggesting opportunities for innovative flavor profiles to grow the category, according to NCA.
Personalization has been a key component in coffee – both at home and in cafes. One of the defining features of specialty coffee is tailored taste, according to NCA. Over half (59%) of drinkers add sweeteners or syrups, while 60% add whiteners like milk or cream and half of drinkers use both in the same cup.
Flavor, function and format offer innovation opportunities
With specialty coffee drinker habits crossing over into functional beverages, emerging ingredients like mushroom coffee pose potential opportunity to expand the category, according to NCA. While awareness remains relatively low, around 30% of consumers say they are open to trying it, whereas 41% specialty coffee drinkers are open to it, reinforcing the correlation between specialty coffee and functional beverages.
