Australia Coffee Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Australia Coffee Market is segmented by Product Type (Whole Bean, Ground Coffee, Instant Coffee, and Coffee Pods and Capsules) and Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Specialist Retailers, and Other Distribution Channels). The report offers the market sizes and forecasts in value terms (USD million) for all the above segments.

Market Snapshot

australian coffee market size
Study Period: 2016-2027
Base Year: 2021
CAGR: 2.19 %
australian coffee companies

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Market Overview

The Australian coffee market is projected to reach a CAGR of 2.19% during the forecast period 2022-2027. 

In 2020, there was fall in the market due to the closure of coffee shops and restaurants due to lockdown and self-quarantine measures, based on the present COVID-19 scenario. Following the recovery, i.e. post-lockdown, the market is expected to develop steadily during the forecasted period, aided by workplace safety measures such as social distancing.

It has been shown that a significant proportion of Australians choose coffee every day. As a result of the high frequency of coffee drinkers in the country, the market has a bright future. Furthermore, during the projection period, the market demand is driven by consumers' propensity to spend on coffee. More than 4 in 5 Australians are said to spend money on coffee on a weekly basis, demonstrating that the country has a well-established coffee culture.

The majority of coffee consumers are purchasing a different variety of coffee via online delivery channels. A large number of consumers are ordering their coffee online, thus, increasing the consumption of at-home coffee consumption. ​According to the analysis of Mordor Intelligence, the growth rate of at-home coffee increased to 37% in March 2020 in Australia.

Scope of the Report

Coffee is the most popular and consumed brewed drink prepared from roasted coffee beans. Further, the Australian coffee market is segmented by product type and distribution channel. On the basis of product type, the coffee market is segmented under whole-bean, ground coffee, instant coffee, and coffee pod capsules. Based on the distribution channel, the market is segmented under supermarkets/hypermarkets, convenience stores, specialist retailers, and other distribution channels. For each segment, the market sizing and forecasts have been done on the basis of value (in USD billion).

By Product Type
Whole Bean
Ground Coffee
Instant Coffee
Coffee Pods and Capsules
By Distribution Channel
Supermarkets/Hypermarkets
Convenience Stores
Specialist Retailers
Other Distribution Channels

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Key Market Trends

Consumer Demand for Certified Coffee Products

The demand for certified coffee has expanded in recent years, particularly during the pandemic. This is mostly due to consumers' increased awareness of ethical consumption. In the coffee sector, certification has helped to maintain ethical and environmental norms. Sustainability is a major concern for both businesses and consumers in the coffee industry. Coffee merchants, roasters, and retailers frequently use certification standards as part of their sustainability strategy. As a result, demand for certified coffees 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 the consumers. Moreover, companies can switch to environmentally friendly farming practices, including organic certifications.

australian coffee market trends

Instant Coffee Holds a Significant Market Share

When it comes to coffee, Australian clients are interested in the origin and flavour of the product. In addition, because city dwellers have less time to prepare coffee, the sale of instant coffee pouches and pods has increased in cities. Depending on the customer's'relationship' with coffee, the tendency has impacted various parts of the business. Customers that place a premium on quality have boosted their Coffee Pod usage, attempting to duplicate the coffee shop experience at home. The Instant Coffee market has been driven by the urban population's desire for instant refreshment. Mainly, convenience is the foremost factor driving the instant coffee market in Australia, as it is easily prepared compared to fresh coffee. The haste lifestyle of the consumers is aiding the market of convenient food. The distribution of the product is equipped by a majority of the retail channels. The instant coffee market is highly competitive due to the presence of numerous global players in the market. Companies are competing with other companies through joint ventures, partnerships, and product launches to stay in the market. Sighting the rising demand for instant coffee, in 2020, Nestlé launched Starbucks® premium instant (soluble) coffee. The new range consists of Medium Roast and Dark Roast coffees, various coffee beverages, and a tea latte.

australian coffee market analysis

Competitive Landscape

The Australian coffee market is a competitive market, with the presence of both prominent global players as well as various regional players. The Australian coffee market is a highly dynamic market as it is subject to rapid changes in consumer preferences. 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 are Jacobs Douwe Egberts, Vittoria Coffee Pty Ltd, Nestle SA, Luigi Lavazza SpA, Conga Foods Pty Ltd, and The Coca-Cola Company, among others.

Recent Developments

In February 2020, Lavazza Australia launched a barista-inspired premium whole coffee bean collection, known as Espresso Barista. The product is available on the company’s new e-commerce site, lavazza.Com.Au.

In March 2019, Nespresso launched a new coffee pod. The limited-edition Master Origin Costa Rica is available across Australia and comes in a sleeve of ten pods for AUD 9.50.

In March 2018, The Kraft Heinz Company acquired Cerebos Food & Instant Coffee business in Australia & New Zealand and the Asian Home Gourmet Singapore business in a transaction valued at AUD 290 million (approximately USD 227 million) from Suntory Beverage & Food Ltd.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables and Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product Type

      1. 5.1.1 Whole Bean

      2. 5.1.2 Ground Coffee

      3. 5.1.3 Instant Coffee

      4. 5.1.4 Coffee Pods and Capsules

    2. 5.2 By Distribution Channel

      1. 5.2.1 Supermarkets/Hypermarkets

      2. 5.2.2 Convenience Stores

      3. 5.2.3 Specialist Retailers

      4. 5.2.4 Other Distribution Channels

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Jacobs Douwe Egberts

      2. 6.4.2 Vittoria Coffee Pty Ltd

      3. 6.4.3 Nestle SA

      4. 6.4.4 Merlo Coffee

      5. 6.4.5 Five Senses Coffee Pty Ltd

      6. 6.4.6 Global Beverage Solutions

      7. 6.4.7 Luigi Lavazza SpA

      8. 6.4.8 Honest Coffee Roasters LLC

      9. 6.4.9 The Coca-Cola Company

      10. 6.4.10 Conga Foods Pty Ltd

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Australia Coffee Market market is studied from 2016 - 2027.

The Australia Coffee Market is growing at a CAGR of 2.19% over the next 5 years.

Nestle SA, Vittoria Coffee Pty Ltd., JAB Holding Company , Luigi Lavazza S.p.A., Conga Foods Pty Ltd are the major companies operating in Australia Coffee Market.

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