Ruqayyah Snyder
Coffee is a beloved beverage worldwide, and Australia is no exception. In fact, Australia has a unique coffee culture defined by a preference for specialty beverages and a strong independent café scene. With more than one in four Australians indicating they cannot survive the day without coffee, and 88% stating they like it to some extent, Australia's coffee market is thriving. So, how many people drink coffee in Australia, and what are their coffee habits?
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What You'll Learn
Coffee consumption in Australia
Australia has a unique coffee culture, with a love for specialty beverages and a flourishing independent café scene. While not a major coffee-producing country, Australia ranks among the top 15 coffee markets worldwide in terms of revenue. In 2023, the country imported over one billion Australian dollars' worth of coffee, more than doubling in the last decade.
Coffee is deeply embedded in Australia's cultural identity, with research showing that coffee consumption is on the rise. In 2014, 46% of Australians drank coffee, compared to 38% who drank tea. This trend has continued, with around three-quarters of coffee drinkers consuming at least one cup of coffee per day, and 28% drinking three or more cups daily. Australians' love for coffee is reflected in their willingness to pay for their favourite drinks, with more than four in five Australians (84%) spending money on coffee in an average week.
The country's coffee preferences vary by region and generation. In New South Wales, cappuccinos are the most popular choice, while in the Northern Territory, coffee drinkers spend on average $1 more per cup than in New South Wales. Younger generations, such as Gen Y and Gen Z, have a greater dependency on coffee, with around a third needing it to survive the day. They are also more likely to purchase coffee from cafes, with 61% of Gen Z and 53% of Gen Y doing so, compared to older generations.
Australia's coffee culture has evolved since the mid-1990s when Italian and Greek immigrants popularized espresso. While Starbucks and other chains are less popular in Australia than in the US, they still attract customers, especially those seeking an evening coffee due to their extended opening hours. Overall, Australians show a preference for independent cafes, and the country has a strong culture of coffee-to-go, with many enjoying their coffee during their commute or while out walking with friends.
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Coffee culture in Australia
Coffee is deeply embedded in Australia's cultural identity, with more people drinking coffee (46%) than tea (38%) in 2014. This trend has continued, with around three-quarters of coffee drinkers in Australia drinking at least one cup of coffee a day, and 27% claiming they cannot survive the day without it. The majority of Australians who drink coffee (86%) will make a coffee at home on a usual weekday, with younger generations being more likely to purchase coffee from a cafe.
Australians tend to prefer independent cafes rather than chains like Starbucks, which failed to gain a foothold in the country due to its well-established coffee culture. In fact, in 2008, Starbucks closed 70% of its stores in Australia. Nestle Australia is the nation's preferred coffee company, with a 58% market share lead for coffee sales.
Loyalty programs are important to Australian coffee shop visitors, with 64% saying they would return to a coffee shop if it offered a loyalty scheme. The social aspect of coffee is also important, with just 23% of coffees ordered at coffee shops being taken away, while the rest are consumed in the establishment. This may be due to the preference for big, milky coffees in Australia, which take a while to drink and are not well-suited for on-the-go consumption.
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Coffee preferences in Australia
Australia has a unique coffee culture, with a love for specialty beverages and independent cafes. While the country is not a major coffee producer, it ranks among the top 15 coffee markets worldwide in terms of revenue. In 2020, Australia exported nearly 70 million Australian dollars' worth of coffee and coffee substitutes.
Coffee is deeply embedded in Australia's cultural identity, with research indicating that 27% of Australians claim they cannot survive the day without a cup of coffee, and 88% stating they like it to some extent. This love for coffee is particularly strong among younger generations, with around a third of Gen Y and Gen X needing it to survive the day. On average, Australians consumed around two kilograms of coffee per person in 2021, with 0.7 kilograms being roast coffee and 1.4 kilograms being instant coffee.
When it comes to coffee preferences, Australians are evenly divided between instant coffee (39%) and espresso (39%). Older generations tend to prefer instant coffee, while younger generations favour espresso. However, the Builders generation is an exception, with 42% preferring espresso. Australians also show a preference for milky coffees, with lattes being the most popular, followed by flat whites and cappuccinos. Flat whites, which are believed to have originated in Australia or New Zealand, offer a stronger coffee flavour with less froth and foamed milk. Lattes are comparatively inexpensive, costing an average of $3.96 AUD per cup, while chai is the most expensive beverage at $4.16 AUD.
Coffee consumption habits in Australia have been influenced by factors such as cost-of-living pressures and the COVID-19 pandemic. As a result, there has been a shift towards homemade brews, with many Australians investing in coffee machines. Additionally, loyalty programs and rewards schemes are important factors that influence coffee drinkers' choices of cafes and coffee shops.
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Coffee spending in Australia
Coffee is a beloved beverage in Australia, with a thriving coffee culture that has led to an abundance of cafes and coffee shops throughout the country. Australia has a unique coffee culture defined by a love for specialty beverages and several flourishing independent cafes and roasteries. In 2023, the country imported over one billion Australian dollars' worth of coffee, with imports around twelve times the value of exports.
Despite their love for coffee, Australians have adapted their habits in line with inflation, with takeout purchases at cafes on the decline. Instead, many are investing in at-home coffee machines to save money, with manufacturers like Breville recording a year of record sales, experiencing double-digit growth from its coffee category. Breville offers machines ranging from a few hundred dollars to its top-of-the-line $3,699 product. Another popular coffee machine brand is Sunbeam.
The cost of a cup of coffee in Australia varies depending on the location and the type of coffee. In April 2024, the wholesale price range for coffee was between AUD 6.66 and AUD 17.33 per kilogram, while retail prices ranged from AUD 14.32 to AUD 37.23 per kilogram in cities like Canberra and Melbourne. A small takeaway flat white at specialty venues in Australian capital cities averages around AUD 4.78, while a coffee in London would cost around GBP 6.96. The cheapest city for coffee in Australia is Adelaide, with an average price of AUD 4.00 per coffee and AUD 4.60 for a latte. In Western Australia, takeaway coffee typically costs around AUD 4.60, but prices vary by suburb.
Australians' love for coffee is strong, with 27% claiming they cannot survive the day without it and 88% stating they like it to some extent. More than four in five Australians (84%) spend money on coffee in an average week, with three in four (75%) enjoying at least one cup per day, and 28% having three or more cups daily. Australia's younger generations have a greater dependency on coffee, with around a third needing it to survive the day (33% Gen Y and 30% Gen X).
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Coffee imports and exports in Australia
Australia is among the world's top 15 coffee importers, importing almost $450 million worth of coffee beans in 2019. In 2022, 25% of raw coffee beans imported into Australia came from Brazil, with Colombia being the second-largest importer, making up over 14% of the total value of raw coffee imports.
In 2023, imports of coffee, tea, mate, and spices accounted for 0.294% of total imports into Australia, valued at $847 million. This was a decrease from 2022, when imports of this commodity group were valued at $949 million, making up 0.306% of total imports.
When it comes to importing coffee beans into Australia, there are several important preparation steps to comply with the Australian Biosecurity Import Conditions. Shipments must be free of contaminant seeds, soil, animal and plant debris, and other biosecurity risk materials. Green coffee beans must also be free of fruit pulp before arriving in the country, and each consignment must be wrapped in new, clean packaging—straw packaging is prohibited.
In terms of exports, coffee made up a small proportion of total exports from Australia, at 0.012% in 2022. The value of these exports was $22 million, a decrease from the previous year.
From 2016 to 2019, imports of roast and ground coffee products to Australia fluctuated. However, in the 2020 financial year, coffee imports increased to 200 thousand sixty-kilogram bags, and they remained at this level until 2024.
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