Australia Coffee Market - Growth, Trends, and Forecast (2022 - 2030)

Nestle Australia Ltd. led Australian Coffee Sales in 2016 with a Retail Value Share of 58%"

Australia is one of the major coffee consuming countries of the Oceania region. In addition, it is one of the few countries where instant coffee consumption outstrips the freshly brewed ones. Moreover, almost 75 % of annual coffee consumption is instant in Australia. The Australia coffee market value is expected to witness a 3.5% CAGR during the forecast period. In 2016, Nestle Australia Ltd. led the coffee sales, with a retail value share of 58%. Within fresh ground coffee pods, Nestle continued to dominate holding an 82% value share, mostly through its Nespresso brand (77% value share). Nestle believes in continued innovation and product development. The company released new flavor varieties of fresh ground coffee pods, such as the Americano Intenso, a stronger coffee variety and Ristretto Ardenza that comprises hazelnut and liquorice flavours.

“Australian Lifestyle and Culture drive the Coffee Market”

Cafe culture in Australia is expected to witness a stronger growth, during the forecast period. Further, over the past five years, the cafe and coffee shop industry has grown at a high rate, owing to the love for quality coffee and vibrant coffee culture, among Australians. Furthermore, the coffee consumers are highly interested in the origins and tastes of the products. Consumers are eager to know the coffee origin and this curiosity is reflected in the strategic plans of major companies. For instance, 30% of Jacobs Douwe Egberts Export NLs bought UTZ certified green coffee beans, ensuring that they are sustainably farmed, in June 2016. In Australia, 95% of all cafes are independent and only a few chains in the cities, hold up to 5% of the total market. For instance, Starbucks has around 20 outlets across the country. Eight years after Starbucks launched in Australia, it had to close over two-thirds of its outlets, due to the already-established Australian coffee culture.

“Arabica holds the highest share in the coffee market”

The Australia coffee market, based on source type, has been segmented into Arabica and Robusta. Arabica holds the largest share, followed by Robusta. By product type, the market is segmented into whole-bean, ground coffee and instant coffee. The convenience and versatility, in terms of flavor and aroma, of instant coffee make it an attractive drink for the consumers

Recent Developments

• The demand for Cold-drip coffee is growing in Australia. Cold-drip coffee is prepared one drop at a time, to have a subtle taste with low acidity and bitterness. Housed in a converted warehouse in South Melbourne, it is one of the best places to try this brew. Further, the Central Melbourne, Krimper and Manchester Press are the few top spots to taste this cold-drip coffee.
• Nitro Coffee is another key product that interests consumers. Nitro coffee is poured from a tap and provides a similar mouth feel as a beer. The foamy and creamy texture of Nitro coffee allows brewers to add less milk and sugar, to cut off the bitter taste, however, it is appealing to the health conscious coffee drinker. Moreover, the texture is difficult to replicate in an RTD coffee, giving cafes something extra to offer the millennial, looking for unique drinking experiences.

Competitive landscape

Major players – BARISTA, GLORIA JEANS, HONEST COFFEE COMPANY, JACOBS DOUWE EGBERTS, LAVAZZA, MCCAFE (MCDONALDS), MICHELS PATISSERIE, NESTLÉ, STARBUCKS and THE COFFEE CLUB, among others.

Reasons to Purchase this Report

• Analyzing outlook of the market with the recent trends and Porters five forces analysis
• Market dynamics, which essentially consider the factors, which are impelling the present market scenario, along with growth opportunities of the market in the years to come
• Market segmentation analysis, including qualitative & quantitative research incorporating the impact of economic & non-economic aspects
• Regional and Country level analysis integrating the demand and supply forces that are influencing the growth of the market
• Competitive landscape involving the market share of major players, along with the key strategies adopted for development in the past five years
• Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
• 3-month analyst support, along with the Market Estimate sheet (in excel)

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