Cafes and Coffee Shops in Australia Industry Market Research Report Now Updated by IBISWorld

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Thanks to Australia’s cultural love of coffee, the Cafes and Coffee Shops industry in Australia will continue on its trajectory of growth. For this reason, industry research firm IBISWorld has updated its report on the Cafes and Coffee Shops industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

The prevalence of small speciality cafes and coffee shops has resulted in a high level of competition and low barriers to entry.

The Cafes and Coffee Shops industry in Australia owes its success to the nation's love for quality gourmet coffee, and the extent to which this is entrenched in the daily routine of many Australian consumers. The arrival of European immigrants after World War II, and the emergence of popular European-style cafes in the 1950s, crafted a strong and vibrant coffee culture that has endured to the present day. According to IBISWorld industry analyst Ryan Lin, “this unique aspect of the Australian market supported demand for the industry during the global economic downturn”.

Australia's coffee culture and the prevalence of small speciality cafes and coffee shops has resulted in a high level of competition, low barriers to entry and low industry concentration. Success for industry operators is often determined by the level of customer service, price, the quality of their coffee brand and how well they make a cup of coffee from the texture, temperature and taste of the milk, down to the amount of crema in espressos. “Moreover, the ability to understand and cater to the unique characteristics of demand has been a determinant of success for some players, but an obstacle for those who fail to incorporate them into business operations,” says Lin. Revenue is expected to grow by a compound annual rate of 3.1% over the five years through 2013-14. Revenue is forecast to increase by 3.7% to $5.3 billion in 2013-14. The industry has a low level of market share concentration, much like the hospitality industry as a whole. The industry is highly fragmented and traditionally encompasses a large number of single establishment, owner-operated cafes.

The Cafes and Coffee Shops industry is expected to post sustained growth over the five years through 2018-19, as Australians remain keen on coffee. Consumer demand for high-quality, convenient food and beverage offerings should support strong sales of coffee and other cafe products. Gradually strengthening economic conditions and ongoing interest in health and ethical issues are also expected to bolster sales. While the presence of international players and coffee shop franchises is expected to increase, the prevalence of small specialty operators and intense competition driven by the nation's entrenched coffee culture will remain the underlying drivers of the industry's success and vibrancy.

For more information, visit IBISWorld’s Cafes and Coffee Shops in Australia industry report page.

Follow IBISWorld on Twitter:!/ibisworldau

IBISWorld industry Report Key Topics

The industry consists of cafes and coffee shops serving food and beverages for customers on premises. The industry excludes takeaway food services, restaurant and catering services, theatre restaurants and the sale of alcohol for consumption on and off premises.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

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 or call (03) 9655 3886.

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Gavin Smith
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