Australia Coffee Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.55 Billion |
| Market Size (2029) | USD 2.05 Billion |
| CAGR (2024 - 2029) | 5.73 % |
| Market Concentration | Low |
Major Players.webp "Australia Coffee Market Major Players"){kind=logo}
*Disclaimer: Major Players sorted in no particular order |
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Australia Coffee Market Analysis
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).
- The high frequency of coffee drinkers in the country is the primary factor contributing to the growth of the coffee industry in Australia. 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 coffee market demand in Australia 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 Australian coffee market growth. Moreover, most coffee consumers purchase a different variety of coffee via online delivery channels. Many consumers order 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, several Australian coffee brands 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 coffee industry trends in Australia, like 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.
- The coffee industry trends in Australia point towards an increased demand for certified coffee. Australian coffee 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 and holds a significant Australian coffee market share, 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.
- Australian coffee 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
- As per coffee industry statistics in Australia, 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 coffee industry in Australia 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, Australian coffee companies 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 coffee industry in Australia 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 Australian coffee brands in the market include Vittoria Coffee Pty Ltd, Nestle SA, Jab Holdings, Luigi Lavazza SpA, and FreshFood Services Pty Ltd.
Australia Coffee Market Leaders
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Nestle SA
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Vittoria Coffee Pty Ltd.
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JAB Holding Company
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Luigi Lavazza S.p.A.
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FreshFood Services Pty Ltd
*Disclaimer: Major Players sorted in no particular order
Australia Coffee Market News
- May 2024: Nutella partnered with Lavazza to launch Nutella & Lavazza’s biscuits and coffee ‘Perfect Match.’ Lavazza also offers the Espresso Barista coffee range, which uses beans from Central and South America, Africa, and Asia and has aromatic notes of flowers, cocoa, and wood.
- April 2024: Nescafe and Arnott teamed up to launch another Tim Tam-inspired drink, the Nescafe White Choc Mocha. The company states that the new flavors combine creamy coffee with the white chocolate taste of Tim Tam biscuits.
- February 2024: L’OR Espresso entered a new global partnership with Ferrari. The collaboration sees L’OR Espresso embark on a new chapter alongside Ferrari in the FIA World Endurance Championship (WEC).
Australia Coffee Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Market Drivers
- 4.1.1 Rise Of Coffee Culture
- 4.1.2 Product Differentiation And Market Initiatives
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4.2 Market Restraints
- 4.2.1 Presence Of Substitutes
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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
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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
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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
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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 Illycaffè 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
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityAustralia Coffee Industry Segmentation
The coffee market in Australia is segmented by product type and distribution channel. Based on product type, the coffee market is segmented into whole-bean, ground coffee, instant coffee, and coffee pods and capsules. Based on the distribution channel, the coffee market is segmented into hypermarkets/supermarkets, convenience/grocery stores, online retail stores, and other distribution channels.
For each segment, the Australia Coffee Market size and forecasts have been done on the basis of value (in USD).
| Product Type | Whole Bean |
| Ground Coffee | |
| Instant Coffee | |
| Coffee Pods and Capsules | |
| Distribution Channel | Hypermarkets/ Supermarkets |
| Convenience/Grocery Stores | |
| Online Retail Stores | |
| Other Distribution Channels |
Australia Coffee Market Research FAQs
How big is the Australia Coffee Market?
The Australia Coffee Market size is expected to reach USD 1.55 billion in 2024 and grow at a CAGR of 5.73% to reach USD 2.05 billion by 2029.
What is the current Australia Coffee Market size?
In 2024, the Australia Coffee Market size is expected to reach USD 1.55 billion.
Who are the key players in Australia Coffee Market?
Nestle SA, Vittoria Coffee Pty Ltd., JAB Holding Company, Luigi Lavazza S.p.A. and FreshFood Services Pty Ltd are the major companies operating in the Australia Coffee Market.
What years does this Australia Coffee Market cover, and what was the market size in 2023?
In 2023, the Australia Coffee Market size was estimated at USD 1.46 billion. The report covers the Australia Coffee Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Australia Coffee Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the growth opportunities in the Australian Coffee Market?
The growth opportunities in the Australian Coffee Market are a) Australians are willing to spend on coffee, indicating a market receptive to premium offerings or innovative experiences b) Growing focus on health-conscious consumers is creating a potential market for functional coffee options or healthier preparations
Coffee in Australia Industry Report
The Australian coffee market is thriving, bolstered by a rich coffee culture and increasing demand for a diverse array of coffee products. From whole beans to instant varieties and innovative coffee pods and capsules, the offerings cater to a wide range of preferences, including robust, bold flavors and milder, fruity undertones. Growth is further fueled by the high adoption of organic and certified coffee, which aligns with consumer interests in health and ethical standards. The market's broad reach is enhanced by various distribution channels, particularly online platforms known for their convenience and extensive product range. In a dynamic competitive landscape, market players are focusing on sustainability and health, with a notable rise in biodegradable coffee pods and capsules, reflecting increasing environmental awareness. Market segmentation by coffee type and distribution channels—including supermarkets and specialty stores—demonstrates adaptability to evolving consumer demands for premium and specialty coffee experiences. The market's diversification and evolution reveal a commitment to satisfying the sophisticated tastes of Australian coffee enthusiasts, as detailed in Mordor Intelligence™ Industry Reports, which illustrate market share, size, and the anticipated growth trajectory. Get a sample of this industry analysis as a free report PDF download.
