Aspiring Economist
The Price of Aesthetic ConsumptionGen Z without an iced coffee is like a lion without a mane. The only outside force that dares to disrupt (or rather, enhance) this symbiotic relationship is Instagram and the posts Gen Z uploads every time they see something even remotely aesthetic — a small window into a much bigger economic story about "aesthetic consumption."
Trust me, there's more to this than me slandering the love my entire generation has for this drink.
In 2015, a single iced coffee was around ₹150, and if you wanted to drink at a Starbucks, their Classic Iced Coffee (Short, 237 ml) was listed at ₹236.25. And now? It stands at no less than ₹300. If you take the average of 2015, which was approximately ₹162, and the very loose figure of 300, you get a whopping 85% hike in prices!
This rise stems from a variety of factors. The major one being inflation, the thing that makes prices rise and wallets empty. As the general price level rises across the economy, so do the costs of raw ingredients — milk, coffee beans, sugar, electricity, even paper cups. What once cost ₹150 in 2015 can easily edge toward ₹300–₹350 today, not because the drink changed, but because the value of money shrank.
Along with this, as time evolved, good products became the bare minimum. Today, cafes don't sell coffee. They sell ambience, experience, and aesthetic. And as brands shifted towards the little things, the prices gradually increased.
So what does iced coffee have to do with a generation of 13-28 year-olds? It backs up the "Little Luxuries" Concept — the idea that people indulge in little things that bring them joy to cope with stressful and difficult situations. In the age of AI presenting a threat to employment and an impending recession, Gen Z in the workforce doesn't have it easy. When splurging on luxury handbags and travels isn't an option, iced coffees become parallels to luxury.
But is there a reason why iced coffees are purchased over a simple cup of tea from a tea stall? Gen Z and Gen Alpha are shaped by what they consume. The root of this phenomenon is 'aesthetic consumption' — purchasing items for their external appearance rather than utility.
A purchase like a simple iced coffee or lipstick has more emotional than financial value. Speaking of lipsticks, the Lipstick Index is akin to the Little Luxuries Theory — during economic downturn, the prices of affordable luxuries don't decline, they surge, acting as dopamine boosters for the consumer.
Gen Z displays a curious duality in their spending habits — thrift stores and cashback apps, alongside ₹350 iced coffees and premium skincare. By cutting back where it doesn't hurt and spending where it uplifts identity, they're crafting a new kind of rationality.
In the age of curated feeds, consumption is all about showing. A simple iced coffee becomes a lifestyle emblem — placed just right on a café table, captured in golden-hour light, and posted. This demand has nudged brands to reimagine offerings: minimalist packaging, curated interiors, photogenic presentations — the more Instagrammable, the higher the value.
For marketers, the message is clear: authenticity, relatability, and visual appeal drive Gen Z's buying behaviour. For educators, this trend reveals a deeper insight — integrating financial literacy and encouraging critical engagement with spending habits can bridge the gap between economic theory and lived reality.
At first glance, an iced coffee might seem like a small indulgence. But for Gen Z, it often represents autonomy, self-care, identity, or a sense of calm in a chaotic world. It's not just about luxury — it's about meaning, and in a world constantly shifting beneath their feet, that meaning might be the most valuable currency of all.
