Australia Coffee Market Size and Share Outlook: Forecast Trends and Growth Analysis Report (2025-2034)

The Australia coffee market revenue is driven by the increasing consumption of caffeinated beverages in the country. Coffee is a brewed beverage that is consumed to boost energy levels, improve physical performance, rich in antioxidants, and enhances cognitive function. It is served in various forms such as espresso, cappuccino, latte, and brewed coffee each having its unique flavour and preparation method. It helps to increase energy levels and concentration.

The import of coffee from India has increased from 5,491Mt in 2021-22 to 5,540Mt in 2022-23 which indicates the potential growth in the Australia coffee market.

Australia coffee market is being driven by evolving coffee consuming culture, sustainable practices in the coffee value chain, and technological advancements.

Evolution in coffee culture

In Australia, advancements in the coffee market spur innovation in brewing techniques like pour-over, cold brew, and aeropress, fostering speciality coffee shops, sustainability, and diverse bean sourcing for rich flavours.

Sustainable practices

Growing sustainability and health consciousness attract consumers to demand eco-friendly materials. Cafes respond with ethical sourcing, biodegradable cups, composting, and waste reduction, driving the Australia coffee market size.

Technological advancements

Through technology integration, a new operational model has emerged to enhance productivity. Cotti Coffee employs robots with mechanical arms for tasks like order-taking and beverage preparation.

Milk alternatives

Growing dietary preferences, lactose intolerance, and dairy allergies prompt consumers to opt for healthier and cruelty-free plant-based milk alternatives like almond, soy, oat, and coconut milk, expanding choices.

January 2024: Luckin Coffee has become the official partner for the Australian Open and has announced their multi-year partnership.

October 2023: Veneziano Coffee Roasters has opened a café at Qantas Terminal 1 of Melbourne airport where they will serve elevated blend as its house blend.

July 2023: Lavazza Australia has launched its new product line, tales of Italy, it is a coffee beans and ground with three unique flavours, Refined Milano, Eternal Roma, and Alluring Napoli.

July 2023: To focus on its ‘core portfolio of products’, Coca-Cola Australia discontinued its ready-to-drink (RTD) beverage, Barista Bros which came in espresso, double espresso, mocha, and iced chocolate flavours.

Australia coffee Market Trends

As per the Australia coffee market report, there is a growing interest in speciality coffee that offers high-quality beans, unique flavour profiles and brewing methods. Cafes adopt sustainable practices such as using biodegradable cups, composting, and reducing waste. They use plant-based milk alternatives to create healthier and cruelty-free products as there are increasing consumer concerns for dietary preferences, dairy allergies, and lactose intolerance.

Ready-to-drink coffee has special significance in the Australia coffee market, as it has become more prevalent for on-the-go consumption to the diverse needs of consumers. These are offered in a variety of options to consumers. For instance- Suntory BOSS coffee offers various options to its customers such as Iced Long Black, Iced Latte, Caramel Iced Latte, and Iced Mocha.

This report offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Whole Bean
• Ground Coffee
• Instant Coffee
• Coffee Pods and Capsules
• Others

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Online Retail
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Coffee Market Share

Based on type, the Australia coffee market share is driven by instant coffee as they are convenient and easy to use.

Instant coffee is prepared in very little time, has a long shelf life and is popular for individuals on-the-go consumption. These are brewed in concentrated liquid or powder that is dissolved in liquid to produce an instant cup of coffee.

In households, coffee pods and capsules are mainly used as they have a pre-measured amount of coffee, eliminating the need for measuring. These are designed as single-serving portions offering consistency, convenience, and variety of flavours and blends.

Based on the distribution channel, supermarkets and hypermarkets are highly preferred, driving the Australia coffee market size.

Individuals have their regular shopping routines weekly or monthly, so they prefer to buy coffee along with other groceries which makes it time-saving, convenient, and efficient. These markets offer a wide range of brands to cater to consumer preferences enabling consumers to compare different brands and prices. Australian consumers trust these retailers as they have built a reputation by providing high-quality products eventually indicating the potential growth in the Australia coffee market.

Companies have expertise in sourcing food and beverage products, such as condensed milk, baby foods, frozen foods, and manufacturer and supplier of coffee products.

Cantarella Bros. Pty. Ltd

Cantarella Bros. Pty. Ltd, founded in 1947 and headquartered in Australia, has expertise in sourcing food and beverage products, they also import Italian commercial espresso machines.

Nestlé Australia Ltd

Nestlé Australia Ltd, founded in 1866 and headquarters in Switzerland, offers different types of food and beverage products, such as condensed milk, baby foods, frozen foods, bottled water and much more.

Merlo Coffee Pty Ltd

Merlo Coffee Pty Ltd, headquartered in Australia, is a coffee roaster that provides coffee roasters to various cafes and restaurants.

Lavazza Australia Pty Ltd

Lavazza Australia Pty Ltd, founded in 1895 and headquartered in Italy, is a manufacturer and supplier of coffee products such as coffee Capsules, Pods, Ground Coffee, and Beans.

Other Australia coffee market key players are Five Senses Coffee, Foodco Group Pty Ltd, and Caffe Ducale (DC) Pty Ltd, among others.

Australia Coffee Market Analysis by Region

According to the Australian Bureau of Statistics (ABS), New South Wales generated AUD 11.094 billion from retail sales in August 2023, with Victoria and Queensland generating AUD 9.149 billion and AUD 7.241 billion respectively, indicating potential growth in the Australia coffee market.