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According to the report by Expert Market Research (EMR), the Australia coffee market reached a value of around USD 1.34 billion in 2023. Aided by the increasing demand for speciality coffee and the burgeoning café culture, the market is projected to grow at a CAGR of 5.1% between 2024 and 2032 to reach a value of nearly USD 2.10 billion by 2032.

Australia is renowned for its vibrant coffee culture, which is deeply embedded in the daily lives of its citizens. The country boasts a high per capita consumption of coffee, significantly influenced by the proliferation of independent coffee shops and chains that focus on quality and sustainability. This emphasis on high-quality coffee is propelled by well-informed consumers who prioritise organic, fair-trade certified, and speciality coffees.

The market dynamics are significantly driven by the rise of home brewing. The COVID-19 pandemic accelerated this trend, as lockdowns and social distancing norms led consumers to replicate café-quality coffee at home. This shift has resulted in increased sales of coffee machines and accessories, boosting the overall Australia coffee market growth. Additionally, Australian consumers have shown a keen interest in sustainable and ethically sourced coffee, which has encouraged coffee suppliers to adopt transparent and responsible sourcing practices.

Technological advancements in coffee equipment, including espresso machines and grinders, have also played a crucial role in shaping the market landscape. These innovations enhance the coffee brewing experience and maintain consistency in quality, which is highly valued in the Australian market. Furthermore, the introduction of coffee pods and capsules that cater to convenience without compromising on quality has seen a rise in popularity among the time-poor consumers. This is driving the Australia coffee market development.

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Speciality coffee holds a significant Australia coffee market share, driven by the consumers’ growing appreciation for artisanal and craft coffees. This coffee benefits from the expertise of local roasters who are experimenting with various roasting techniques and coffee origins to create distinctive flavours and profiles that cater to the sophisticated tastes of coffee enthusiasts.

Moreover, the integration of coffee shops with social spaces and work environments, often referred to as “coffice” (coffee and office), is a trend gaining momentum in urban areas. These spaces are designed to cater to professionals and students who seek a conducive environment for work or study, coupled with high-quality coffee. This trend not only supports the Australia coffee market but also fosters a community around coffee consumption.

The increasing influence of international coffee trends in Australia is expected to introduce new coffee varieties and brewing techniques. As Australian consumers are eager to explore diverse coffee experiences, the introduction of global coffee practices, such as Scandinavian light roasts or the speciality coffees from Africa and South America, will enrich the local coffee landscape. This globalisation of coffee culture not only broadens the consumer’s palate but also encourages local cafes and roasters to innovate continuously. This is expected to lead to the Australia coffee market development.

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The Australia coffee market will benefit from the growing interest in health and wellness, which influences consumer choices towards coffee products. The rising demand for “clean” and health-enhancing products, such as coffee with added functional benefits like vitamins or proteins, or low-acidity coffee options, is expected to spur new product developments. These health-oriented products cater to a niche but rapidly growing segment of health-conscious consumers who do not want to compromise on their coffee intake.

The Australia coffee market faces challenges, including the fluctuating prices of coffee beans on the global market, which can impact the cost structure of local coffee businesses. However, the strong domestic demand and the continuous innovation in coffee products and services are likely to mitigate these challenges.

In conclusion, the Australia coffee market is set to continue its growth trajectory, underpinned by the strong café culture, the shift towards premium and sustainable products, and the innovative integration of coffee consumption with modern lifestyle needs. As Australia progresses, the market is expected to reach new heights, fuelled by the enduring passion for coffee and the evolving consumer preferences.

Market Segmentation

The market can be divided based on product type and distribution channel.

Market Breakup by Product Type

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

Market Breakup by Distribution Channel

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

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia coffee market. Some of the major players explored in the report by Expert Market Research are as follows:

• Nestle S.A.
• Koninklijke Douwe Egberts B.V.
• Starbucks Corp.
• Cantarella Bros. Pty. Ltd.
• Corval Group Pty Ltd. (Conga Foods)
• Luigi Lavazza S.p.A.
• Zentveld’s Pty Ltd.
• Five Senses Coffee Pty Ltd.
• Cantarella Bros Pty Ltd (Will&Co)
• Skybury
• Others