AUSTRALIA – Out of home consumption up 65% – soluble still tops at home

Sydney – According to a new report by economic researcher BIS Shrapnel, the number of coffees served every year in Australia increased by 65 per cent over the 10 years to 2005. The number of franchise outlets has climbed by about 50 per cent since 2001 and the industry is now worth $840 million (US$ 619.44 million).
The market is almost equally divided between independent operators (selling 39 per cent of coffees sold) and American global brands such as Gloria Jean’s, McCafe and Starbucks (40 per cent).

What is happening with fast foods is happening in cafes too, said report author Dr Sandro Mangosi: the big chains are growing while smaller operators are struggling for survival. He added that smaller operators cannot compete because they are unable to get the best location and coffee shops are a profitable business only in good locations.

Australians drink an average 2.4kg of coffee each a year, the survey said. It is important to note that 87 per cent of the 1700 people surveyed said they drank instant at home. A similar percentage also opted for instant in the office.