Lexi Webster
Coffee is a beloved beverage in Australia, with many consumers starting their day with their favourite brew. The Australian coffee market is experiencing significant transformation, driven by consumer awareness and demand for premium and certified coffee products. The industry, which includes the sale of coffee beans and coffee shop revenue, is worth $5.8 billion USD per annum and is expected to reach $14.2 billion in the five years to 2024-25.
| Characteristics | Values |
|---|---|
| Market size in 2025 | USD 1.64 billion |
| Projected market size in 2030 | USD 2.17 billion |
| CAGR from 2020 to 2025 | 5.73% |
| Annual coffee consumption per person (2022) | 1.91 kg |
| Ranking in per capita coffee consumption (2023) | 11th |
| Number of cafes and restaurants in 2023 | 54,000+ |
| Revenue generated by food service establishments in 2023 | AUD 6.9 billion+ |
| Market size of cafes and coffee shops in 2024 | AUD 10.8 billion |
| Projected market size of cafes and coffee shops in 2025 | AUD 14.2 billion |
| Number of businesses in the cafes and coffee shops industry in 2024 | 25,001 |
| Projected number of businesses in the cafes and coffee shops industry in 2025 | 27,193 |
| CAGR of cafes and coffee shops industry from 2020 to 2025 | 2.6% |
| Market size of coffee shops in 2025 | AUD 4.9 billion |
| Number of businesses in the coffee shops industry in 2024 | 12,631 |
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What You'll Learn
Coffee consumption habits
Coffee is a beloved beverage in Australia, with a unique coffee culture defined by a love for specialty beverages and numerous independent cafes and roasteries. The country's coffee market is expected to reach USD 1.64 billion in 2025 and USD 2.17 billion by 2030. While Australia is not a major coffee producer, it imported over AUD 1 billion worth of coffee in 2023, more than twelve times the value of exports.
Coffee is an essential part of the morning routine for many Australians, with 27% claiming they cannot survive the day without a cup. Instant coffee is the most consumed type, with 39% of Australians preferring it, while the same proportion favour espresso-based drinks like lattes and cappuccinos. Taste and quality are the most important factors when choosing a coffee brand, with only 6% citing price as the biggest consideration.
Around three-quarters of Australian coffee drinkers consume at least one cup a day, with some having three or more. The country's coffee culture has supported the industry during challenging economic conditions, with consumers treating coffee as an affordable luxury. However, due to the cost-of-living crisis, there has been a decline in cafe visits, with some people opting for homemade brews using coffee machines.
The Australian market generally prefers independent coffee shops to chains like Starbucks and McCafe. 95% of coffee shops in the country are independently owned, and only 5% are chain coffee shops, primarily located in big cities. This preference for independent cafes and roasteries contributes to the vibrant coffee culture in Australia.
The coffee industry in Australia is also witnessing a shift towards premium and certified coffee products, driven by the rise of ethical consumerism. Consumers are willing to pay premium prices for coffee that adheres to environmental and moral norms, prompting manufacturers to focus on sustainable sourcing and packaging practices. Additionally, the convenience of ready-to-drink iced coffee has gained popularity, especially among Gen Z and Millennial consumers.
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Coffee imports and exports
Australia's coffee industry is expected to reach a market size of 1.64 billion USD in 2025 and grow at a CAGR of 5.73% to reach 2.17 billion USD by 2030. While Australia is not a major producer of coffee, it has a unique coffee culture defined by a love for specialty beverages, with about 27% of Australians saying they cannot survive the day without a cup. The country imported over one billion Australian dollars' worth of coffee in 2023, more than doubling in the last decade, and its imports are about twelve times the value of its exports. Brazil, Colombia, and Vietnam are the leading source markets for coffee beans imported into Australia, owing to their reputation for high-quality coffee beans. In 2019, Australia imported almost 450 million USD worth of coffee beans, and the country is among the world's top 15 coffee importers.
Despite cultivating a small volume of specialty coffee, Australia imported 1.6 million bags out of the 1.96 million 60-kilogram bags of coffee consumed in the country in 2025. The industry, which includes the sale of coffee beans and coffee shop revenue, is worth 5.8 billion USD per year and is expected to grow in the coming years. The high consumption levels have driven manufacturers to diversify their product offerings and distribution channels. For instance, in 2022, Nestlé launched ready-to-drink iced coffee through its Global Coffee Alliance partnership.
To comply with Australian Biosecurity Import Conditions, importers must ensure that their coffee shipments are free of contaminant seeds, soil, animal and plant debris, and other biosecurity risk materials. Green coffee beans must be free of fruit pulp before arriving in Australia, and each consignment must be wrapped in clean and new packaging. Straw packaging is prohibited as it may carry insects or toxic diseases.
The Australian coffee market is experiencing a significant transformation driven by increasing consumer awareness and demand for premium and certified coffee products. This shift is attributed to the rising practice of ethical consumerism, with consumers actively seeking transparency across the coffee supply chain. Sustainability and environmental initiatives have emerged as powerful drivers in the market, reflecting a broader shift in consumer consciousness and industry responsibility. Companies are implementing comprehensive sustainability programs, focusing on environmentally friendly coffee packaging and responsible sourcing practices.
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Coffee shop culture
The coffee industry in Australia has grown from independent cafes since the early 20th century. Today, 95% of cafes in Australia are independently owned, with only 5% being chain coffee shops, found primarily in big cities. Starbucks, for example, has very little market share in Australia, with just 23 stores remaining after entering the market in 2000. This is because Australians prefer their coffee to be pure with very little sugar or flavouring added, which is the opposite of what Starbucks offers.
Australians take their coffee very seriously, focusing on the quality of the bean, the silkiness of the crema, and the shape of the foam. Cappuccinos, lattes, and flat whites (which originated in Australia or New Zealand) are the go-to caffeinated beverages, with Gen Z and Millennials increasingly opting for iced coffee. Australians also prefer less sugary coffee, with oat milk becoming an increasingly popular choice for those seeking non-dairy alternatives.
Melbourne is Australia's coffee capital, with its specialty coffee scene gaining international recognition. The city's coffee culture dates back to the 1950s when espresso was first introduced in cafes, and today it boasts a wide array of specialty cafes and roasters, each offering their own unique take on coffee.
The Australian coffee industry is also witnessing a significant transformation driven by increasing consumer awareness and demand for premium and certified coffee products. Sustainability and environmental initiatives have emerged as powerful drivers in the market, reflecting a broader shift in consumer consciousness and industry responsibility.
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Coffee production
The Australian coffee industry is focused on sustainability and environmental initiatives. Companies are implementing comprehensive sustainability programs and partnering with organisations like The Australian Packaging Covenant (APCO) to reduce their environmental impact. The industry is also committed to ethical sourcing and supply chain transparency, with consumers willing to pay premium prices for coffee that meets moral and environmental standards.
Coffee is grown in the far eastern part of Australia, in subtropical regions such as the Atherton Tablelands in northern Queensland and northern New South Wales. The trees are planted at densities of 2,500-4,000 per hectare and reach full production in four to five years. A mature tree yields 1.5-4.0 kilograms of ripe fruit, resulting in about 250-600 grams of dry green beans.
The Australian coffee industry is identifying and implementing more efficient farming systems and sophisticated processing techniques. This enables the consistent production of high-quality coffee beans, with a focus on lighter roasts and unique flavours. Despite the challenges of habitat loss and the high cost of labour, the industry is expected to grow, driven by increasing consumer demand for premium and certified coffee products.
Australia's coffee production is relatively small compared to other countries, with an annual output of 200 to 600 tons. However, the industry is maturing and adapting to meet the evolving preferences of coffee enthusiasts in the country and beyond.
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Industry growth and revenue
The Australian coffee industry is substantial, with the market size projected to reach USD 1.64 billion in 2025 and USD 2.17 billion by 2030, growing at a CAGR of 5.73%. This growth is driven by Australia's vibrant coffee culture, with coffee often considered an essential part of the morning routine for many Australians. The industry encompasses the sale of coffee beans, instant coffee, coffee pods and capsules, as well as coffee shop revenue.
While Australia is not a major coffee-producing country, it has a unique coffee culture defined by a preference for specialty beverages and a proliferation of independent cafes and roasteries. The country's coffee market is experiencing a significant transformation driven by increasing consumer awareness and demand for premium and certified coffee products. This shift is attributed to the rising practice of ethical consumerism, with consumers seeking transparency across the coffee supply chain. Sustainability and environmental initiatives have also emerged as powerful drivers in the Australian coffee market, reflecting a broader shift in consumer consciousness. Companies are implementing comprehensive sustainability programs and strategic partnerships to reduce their environmental impact.
The Australian coffee market is highly competitive, with a mix of international and local brands vying for market share. Brazil, Colombia, and Vietnam are the leading source markets for coffee beans imported into Australia, known for their high-quality beans. Popular international brands include Aldi Lazzio, Lavazza, Nescafé, and Nespresso. Local brands such as Vittoria Coffee and Coles Urban Coffee Culture also have a strong presence in the market. The country had over 54,000 cafes and restaurants in operation at the end of the 2023 financial year, with New South Wales and Victoria accounting for more than half of these establishments.
The cafes and coffee shops industry in Australia is expected to grow over the next few years, despite the impact of the cost-of-living crisis on discretionary spending. Coffee is often viewed as an affordable luxury, and the industry has proven resilient, with a steady revenue base. The social aspect of coffee consumption, in addition to quality and convenience, plays a significant role in driving revenue for coffee shops and cafes.
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Frequently asked questions
The coffee industry in Australia is worth $5.8 billion USD per annum and is expected to grow in the coming years.
The Australian coffee industry is characterised by a strong coffee culture, with around three-quarters of coffee drinkers consuming at least one cup of coffee per day. The industry is experiencing a shift towards premiumisation, with consumers seeking sustainable and certified coffee products. There is also a focus on product innovation, with manufacturers investing in eco-friendly packaging and exploring new distribution channels.
The leading coffee brands in Australia include international companies such as Aldi Lazzio, Lavazza, Nescafé, and Nespresso, as well as local brands like Vittoria Coffee and Coles Urban Coffee Culture. The country's preferred coffee company is Nestle Australia.
Coffee cultivation in Australia began in the 1800s, with the first coffee farms believed to be planted in Brisbane in 1832. Commercial plantations emerged in the 1880s along the east coast and in northern New South Wales, but the industry faced challenges due to rising production costs and labour shortages. Coffee production in Australia lay dormant for nearly a century until a revival in the early 1980s. Today, coffee is farmed in regions such as New South Wales and Queensland.
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