Australia Coffee - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Australia Coffee Market size is estimated at USD 1.55 billion in 2024, and is expected to reach USD 2.05 billion by 2029, growing at a CAGR of 5.73% 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 2022, annually, Australians consumed the equivalent of 1.91 kg of coffee per person. Furthermore, 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, NestlŠ¹ 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 to gain 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
The Australian coffee pods and capsules market is witnessing a surge in premiumization, driven by convenience and a growing consumer preference for specialty and gourmet coffee. The key appeal of coffee pods is their single-use and disposable nature, which enhances user convenience by offering a quick and easy brewing process.
Heightened sustainability concerns are reshaping the market, with a notable rise in demand for sustainable coffee capsules. Consumers are increasingly conscious of packaging materials, favoring eco-friendly options that reduce environmental impact. In response, industry players are innovating, focusing on environmentally sustainable and biodegradable coffee capsules to meet this growing demand. For instance, in August 2022, Lavazza, a prominent Italian coffee brand, transitioned to aluminum for its coffee pods, offering Australian consumers a sustainable choice. These carbon-neutral capsules, compatible with Nespresso machines, mark Lavazza's debut of such products in Australian retail, providing an eco-friendly alternative to traditional plastic pods.
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 FreshFood Services Pty Ltd.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
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 2022, annually, Australians consumed the equivalent of 1.91 kg of coffee per person. Furthermore, 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, NestlŠ¹ 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 to gain 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
The Australian coffee pods and capsules market is witnessing a surge in premiumization, driven by convenience and a growing consumer preference for specialty and gourmet coffee. The key appeal of coffee pods is their single-use and disposable nature, which enhances user convenience by offering a quick and easy brewing process.
Heightened sustainability concerns are reshaping the market, with a notable rise in demand for sustainable coffee capsules. Consumers are increasingly conscious of packaging materials, favoring eco-friendly options that reduce environmental impact. In response, industry players are innovating, focusing on environmentally sustainable and biodegradable coffee capsules to meet this growing demand. For instance, in August 2022, Lavazza, a prominent Italian coffee brand, transitioned to aluminum for its coffee pods, offering Australian consumers a sustainable choice. These carbon-neutral capsules, compatible with Nespresso machines, mark Lavazza's debut of such products in Australian retail, providing an eco-friendly alternative to traditional plastic pods.
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 FreshFood Services Pty Ltd.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Rise Of Coffee Culture
4.1.2 Product Differentiation And Market Initiatives
4.2 Market Restraints
4.2.1 Presence Of Substitutes
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 MARKET SEGMENTATION
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/Grocery Stores
5.2.3 Online Retail Stores
5.2.4 Other Distribution Channels
6 COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Vittoria Coffee Pty Ltd
6.3.2 Nestle SA
6.3.3 Luigi Lavazza SpA
6.3.4 JAB Holding Company
6.3.5 Illycaff? SpA
6.3.6 FreshFood Services Pty Ltd
6.3.7 St Ali Pty Ltd
6.3.8 Republica Coffee Pty Ltd
6.3.9 Sensory Lab Australia Pty Ltd
6.3.10 DC Roasters Pty Ltd
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Rise Of Coffee Culture
4.1.2 Product Differentiation And Market Initiatives
4.2 Market Restraints
4.2.1 Presence Of Substitutes
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 MARKET SEGMENTATION
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/Grocery Stores
5.2.3 Online Retail Stores
5.2.4 Other Distribution Channels
6 COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Vittoria Coffee Pty Ltd
6.3.2 Nestle SA
6.3.3 Luigi Lavazza SpA
6.3.4 JAB Holding Company
6.3.5 Illycaff? SpA
6.3.6 FreshFood Services Pty Ltd
6.3.7 St Ali Pty Ltd
6.3.8 Republica Coffee Pty Ltd
6.3.9 Sensory Lab Australia Pty Ltd
6.3.10 DC Roasters Pty Ltd
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
