LONDON, UK – The Coffee in Australia report from Euromonitor International offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data 2008-2012, allowing to identify the sectors driving growth.
It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market – be they legislative, distribution or pricing issues. Forecasts to 2017 illustrate how the market is set to change.
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 McDonalds 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 McDonalds around the world.
Nonetheless, McDonalds 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.
Key Headlines
– Coffee records 4% off-trade value growth, to reach A$1.1 billion in 2012
– Fresh coffee formats post strong value growth in 2012, driven by fresh ground coffee pods
– Off-trade coffee unit prices increase by 1% to A$42.34 per kilogram in 2012
– In 2012, Nestlé maintains its lead with a 60% off-trade value share
– Coffee is anticipated to grow by a 3% total volume CAGR over the forecast period.
