Australia Coffee Market

Description

Australia is one of the prominent consumers of Coffee in Oceania. Australian coffee market has been accounted to be US$ XX Million in 2017 and is expected to grow at a CAGR of XX% to US$ XX Million in 2022. In Australia, the Instant Coffee business has a more market share than Freshly Brewed. Although Australia is one of the world’s most coffee obsessed countries, and falls only behind Europe and North America, increase in population and developments in the quality and variety of Coffee have shown to contribute growth of the industry.

Market Dynamics:

Australian customers are keen on the origin and taste of the product when it comes to Coffee. Also, the urban consumers have less time to brew coffee, increasing the sale of instant coffee pouches and pods in cities. The trend has affected different segments of the industry, depending on the customer’s ‘relation’ with coffee. Customers with quality as the topmost priority have shown increased consumption of Coffee Pods- trying to replicate the coffee shop experience at their homes. The Urban population, with a need for instant refreshment, has been responsible for the Instant Coffee market.

The introduction of new products and techniques the Coffee market including Cold-drip coffee and Nitro Coffee have impacted the Coffee Business in the region to a great extent. Cold-drip coffee is prepared one drop at a time, to have a subtle taste with low bitterness. Its low acidity makes it a healthier alternative to normal coffee. Nitro coffee provides a similar mouthfeel as a beer.

Market Segmentation:

On the basis of type, the Coffee business has been fragmented into Arabica, Robusta and Liberica- Arabica being the largest segment. On the basis of the end product, it can be divided into Coffee Powder, Pod, Capsule, Dips, etc, where the instant coffee segment has the largest market share and highest expected growth. The main reason for the popularity of Instant Coffee is not the rapid refreshment it provides, but also its versatile flavours and economic feasibility.

Geographical Analysis:

Sydney and Melbourne have always been the leading centres of Coffee Culture in Australia. An average Australian consumes about 3 Kg of Coffee per year. However, the kind of coffee consumed differs from state to state. For example, Queensland, Western Australia and Northern Territory show high consumption of Latte, Cappuccino is more popular in Tasmania and New South Wales.

Key players in the market include Starbucks (American), Nestle (Swiss), Coffee Republic (British), Dunkin’ Donuts (American) and Luigi Lavazza (Italian)- to name a few.