Melbourne, Australia (PRWEB) July 31, 2013
The Coffee Shops industry in Australia has brewed up a storm thanks to the nation's love affair with coffee. The proliferation of coffee drinking has caused an explosion in the number of small boutique coffee houses, especially in inner-city locations where office workers congregate during the early morning coffee rush. According to IBISWorld industry analyst Ryan Lin, “The prevalence of coffee drinking has entrenched itself into the daily routines of many Australian consumers, with this unique Australian coffee culture supporting industry demand even during the global financial crisis”. As a result, in the five years through 2013-14, the Coffee Shops industry grew at an annualised 3.0% to total $2.2 billion.
IBISWorld expects that the industry has been facing increasing competitive pressure over the past five years, as more coffee makers enter the business. Market concentration is low, and the only operator with a significant market presence is Jireh Group Pty Limited. Consumers are being pampered with an increasing range of fine coffees, as more establishments are set up in high-traffic locations and the industry seeks more skilled baristas. “In 2013-14, the industry is expected to grow by 3.6% as consumers continue to seek out the elusive perfect cup,” says Lin.
The nation's indulgence in fine coffees is expected to continue in the five years ahead. This momentum will continue even as the Coffee Shops industry undergoes a structural change, shifting its focus to other factors beyond the capacity to serve coffee. However, competitive pressures will cause many industry establishments to either relocate or leave the industry altogether. IBISWorld expects that the growth of the industry will be largely due to the increase in small independent coffee houses, at the expense of chain establishments. Coffee prices are anticipated to fall slightly as coffee makers begin to compete beyond quality.
For more information, visit IBISWorld’s Coffee Shops report in Australia industry page.
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IBISWorld Industry Report Key Topics
This industry consists of coffee shops that sell coffee, other hot and cold beverages and light snacks to consumers. This industry excludes establishments with table services and made to order meals.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.