Companiesandmarkets.com

Australia coffee market: A$1.1 billion industry in 2012

Press release   •   May 01, 2013 14:27 BST

Nestlé Australia retained both its lead in the Australia coffee market and a 60% off-trade value share in 2012. The company is present throughout both fresh and instant coffee, with representation from the Nespresso brand in fresh ground coffee pods, Andronicus in standard fresh ground coffee and Nescafé Blend 43, Nescafé Gold Blend, International Roast and Nescafé Expresso in instant standard coffee. Nescafé Blend 43 Decaffeinated and Nescafé Gold Blend Decaffeinated are additionally present in instant decaffeinated coffee. Nescafé was the leading brand in instant coffee in 2012, with a 64% off-trade value share.

The extent to which Australian consumers are discerning in their coffee preferences can be seen by two key foodservice examples: the virtual exit of Starbucks from the local retail environment; and the apology from McDonald's over the quality of its McCafé coffee. Starbucks famously closed most of its Australian outlets in 2008, with only a handful remaining, a testament to the culture of independent local cafés. McCafé, on the other hand, is still going strong. It has a certain Australian character to its offering, having been created in Australia in 1993, and has since been adopted by McDonald's around the world. Nonetheless, McDonald's felt compelled to publically apologise for the state of its coffee in June 2011 and subsequently initiated a national advertising campaign emphasising its dedication to improvement.

Coffee is anticipated to experience a 3% total volume CAGR over the forecast period, with an expected CAGR of 3% in off-trade constant value. On-trade volume growth is predicted to be fractionally higher than that through off-trade, but both growth rates are expected to be strong.

For more information on the Australia coffee market, please click here: Australia coffee market

Companiesandmarkets.com issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.