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Australia Coffee Market Size (2024 - 2029)

The Australian coffee market is experiencing growth driven by a high frequency of coffee consumption and a strong consumer willingness to spend on coffee products. The market's expansion is supported by the health benefits associated with coffee, such as diabetes risk reduction and increased energy levels. Online delivery channels are becoming increasingly popular, boosting at-home coffee consumption. While there are mixed opinions on instant coffee and coffee shops, instant coffee remains the most consumed type. Additionally, there is a notable shift towards organic and plant-based coffee options. To maintain competitiveness, Australian coffee brands are focusing on product innovation, such as the introduction of ready-to-drink iced coffee.

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Market Size of Australia Coffee Industry

Australia Coffee Market Summary
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

Australia Coffee Market Major Players

*Disclaimer: Major Players sorted in no particular order

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 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
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Australia Coffee Market Size Summary

The Australian coffee market is experiencing significant growth, driven by a high frequency of coffee consumption among Australians and a strong consumer willingness to spend on coffee products. The market is characterized by a diverse range of coffee consumption habits, including a notable shift towards online purchasing and at-home coffee consumption. Health benefits associated with coffee, such as reduced diabetes risk and increased energy, are also contributing to market expansion. The trend towards organic and plant-based coffee options reflects a broader consumer preference for healthier lifestyles. This has prompted Australian coffee brands to innovate and expand their product offerings, such as Nestlé SA's introduction of ready-to-drink iced coffee, to maintain a competitive edge.

Sustainability and ethical consumerism are increasingly influencing the Australian coffee market, with a growing demand for certified coffee products. Consumers are becoming more conscious of the entire supply chain, seeking certifications that ensure ethical and environmentally friendly practices. This demand has led to a rise in certified organic coffee, which is favored for its health benefits and sustainable production methods. The specialty coffee movement is also gaining traction, with consumers seeking high-quality, unique flavor profiles. The market is competitive, with both global and regional players employing strategies like partnerships and product launches to capture market share. Innovations in sustainable packaging, such as biodegradable coffee capsules, are also shaping the industry's future.

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Australia Coffee Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Rise Of Coffee Culture

      2. 1.1.2 Product Differentiation And Market Initiatives

    2. 1.2 Market Restraints

      1. 1.2.1 Presence Of Substitutes

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Product Type

      1. 2.1.1 Whole Bean

      2. 2.1.2 Ground Coffee

      3. 2.1.3 Instant Coffee

      4. 2.1.4 Coffee Pods and Capsules

    2. 2.2 Distribution Channel

      1. 2.2.1 Hypermarkets/ Supermarkets

      2. 2.2.2 Convenience/Grocery Stores

      3. 2.2.3 Online Retail Stores

      4. 2.2.4 Other Distribution Channels

Australia Coffee Market Size FAQs

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.

In 2024, the Australia Coffee Market size is expected to reach USD 1.55 billion.

Australia Coffee Market Report Snapshots

Australian Coffee Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)