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Australia Coffee - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

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  • 80 Pages
  • February 2024
  • Region: Australia
  • Mordor Intelligence
  • ID: 4602372
The Australian coffee market is anticipated to grow from USD 1.53 billion in 2024 to USD 2.01 billion by 2029, at a CAGR of 5.67% during the forecast period (2024-2029).

Key Highlights

  • The high frequency of coffee drinkers in the country represents the primary factor contributing to the growth of the Australian coffee market. According to data published by Coffee Affection in August 2022, annually, Australians consumed the equivalent of 2.011 kg of coffee per person. Frthermore, during the projection period, the market demand is anticipated to be driven by consumers' propensity to spend on coffee.
  • Various health benefits of consuming coffee, such as reducing the risk of diabetes, fat burning, and high energy intake from caffeine spikes, are driving the market growth. Moreover, most coffee consumers purchase a different variety of coffee via online delivery channels. Many consumers are ordering their coffee online, thus increasing the consumption of at-home coffee. Even though opinions about instant coffee and coffee shops are divided across the country, instant coffee is consumed significantly more frequently than any other kind. Besides this, consumers are shifting towards more organic or plant-based coffee to maintain a healthy lifestyle.
  • Hence, key players are engaged in product innovations to maintain a stronger foothold in the market. For instance, in December 2022, Nestlé SA expanded its product portfolio by launching ready-to-drink (RTD) iced coffee in Australia as part of the Global Coffee Alliance partnership.

Australia Coffee Market Trends

Consumer Demand for Certified Coffee Products

  • The demand for certified coffee products has expanded recently, particularly during the pandemic. This is primarily due to the increased practice of ethical consumerism. The certification in the coffee sector has helped maintain moral and environmental norms. Sustainability is a significant concern for businesses and consumers in the coffee industry. Coffee merchants, roasters, and retailers frequently use certification standards for their sustainability strategy.
  • As a result, the demand for certified coffee is increasing. Australian consumers are keen on gaining an overview of the entire supply chain of food and beverages, including coffee. Therefore, consumers are readily looking for certified coffee products to ensure the credibility of their coffee purchases. Certifications offer various third-party assurances to consumers. Moreover, companies can switch to eco-friendly farming practices, including organic certifications.
  • Additionally, certified organic coffee has gained popularity in Australia due to its perceived health benefits and environmentally friendly production methods. Consumers are willing to pay a premium for coffee grown without synthetic pesticides and herbicides. This demand has encouraged more coffee growers in Australia to transition to organic farming practices. The need for certified coffee has also intersected with the specialty coffee movement in Australia.
  • Consumers are not only seeking ethically produced coffee products but also higher quality and unique flavor profiles. Specialty coffee shops often feature certified beans as part of their offerings, attracting discerning coffee enthusiasts. For instance, in October 2022, 7-Eleven sold its most sustainable coffee ever in Australia, with every cup being 100% Fairtrade certified.

Instant Coffee Holds a Significant Market Share

  • Instant coffee is well-known for its convenience. In a fast-paced lifestyle wherein people often have busy lifestyles and limited time for coffee preparation, instant coffee offers a quick and easy solution. Australians increasingly value products that save time, and instant coffee fits this criterion perfectly. It requires minimal preparation - just adding hot water - making it a popular choice for on-the-go individuals.
  • Furthermore, the health and wellness trend has influenced consumer choices across various food and beverage categories, including coffee. Instant coffee brands have responded by offering healthier options, such as instant coffees with reduced sugar content and added functional ingredients like antioxidants or collagen. These products appeal to health-conscious consumers who want coffee without compromising their dietary goals.
  • Additionally, in recent years, there has been a shift in consumer taste towards milder and smoother coffee flavors. Instant coffee brands have responded to this demand by offering various options, including specialty and flavored instant coffees catering to different tastes. This adaptability has helped them gain a foothold in the Australian market.

Australia Coffee Industry Overview

The Australian coffee market is competitive, with the presence of prominent global players and various regional players. The Australian coffee market is highly dynamic as it is subject to rapid changes in consumer preferences. The players operating in the market use different strategies like partnerships, product launches, and expansions to thrive in the market. The coffee market in the country also has the presence of several single-store independent coffee shops that tend to differentiate themselves based on the quality of coffee offered. Some of the major players in the market include Vittoria Coffee Pty Ltd, Nestle SA, Jab Holdings, Luigi Lavazza SpA, and Conga Foods Pty Ltd.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Drivers
4.1.1 High Number of Regular Coffee Drinkers
4.1.2 Demand for Certified Coffee Products
4.2 Market Restraints
4.2.1 Fluctuations in Price of Raw Materials
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 Product Type
5.1.1 Whole Bean
5.1.2 Ground Coffee
5.1.3 Instant Coffee
5.1.4 Coffee Pods and Capsules
5.2 Distribution Channel
5.2.1 Hypermarkets/ Supermarkets
5.2.2 Convenience Stores
5.2.3 Online Retail
5.2.4 Other Distribution Channels
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Jacobs Douwe Egberts
6.3.2 Vittoria Coffee Pty Ltd
6.3.3 Nestle SA
6.3.4 Merlo Coffee
6.3.5 Five Senses Coffee Pty Ltd
6.3.6 Global Beverage Solutions
6.3.7 Luigi Lavazza SpA
6.3.8 Honest Coffee Roasters LLC
6.3.9 The Coca-Cola Company
6.3.10 Conga Foods Pty Ltd

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Jacobs Douwe Egberts
  • Vittoria Coffee Pty Ltd
  • Nestle SA
  • Merlo Coffee
  • Five Senses Coffee Pty Ltd
  • Global Beverage Solutions
  • Luigi Lavazza SpA
  • Honest Coffee Roasters LLC
  • The Coca-Cola Company
  • Conga Foods Pty Ltd