Boutique coffee houses have been growing in numbers, especially in in inner-city locations where there are high numbers of office workers.
Melbourne, Australia (PRWEB) August 16, 2014
The coffee culture has kept revenue brewing for the Coffee Shops industry in Australia over the past five years. 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 morning coffee rush. According to IBISWorld industry analyst Stephen Gargano, “coffee drinking is entrenched in the daily routines of many Australian consumers, which supported industry demand even during the global financial crisis.” As a result, industry revenue is forecast to rise by an annualised 3.0% over the five years through 2014-15. This includes a forecast increase of 1.9% in 2014-15, to total $2.3 billion.
Competitive pressures in the Coffee Shops industry have been steadily rising over the past five years, as more coffee makers have entered the industry. However, market share concentration in the industry has remained low. 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 highly skilled baristas,” says Gargano. While competition is increasing, the cost of doing business is also growing. Major players include Jireh Group Pty Limited.
The nation's indulgence in fine coffees is expected to continue in the next five years, even as the industry undergoes a structural change to focus on other factors beyond the capacity to serve coffee. However, competitive pressures will cause some industry establishments to either relocate or leave the industry altogether. IBISWorld expects that the industry's growth will be largely due to an increase in small independent coffee houses. However, the proposed relaunch of the Starbucks brand may provide a source of growth among the larger coffee chains.
For more information, visit IBISWorld’s Coffee Shops industry in Australia report page.
This industry consists of shops that sell coffee, other hot and cold beverages and light snacks to consumers. This industry excludes establishments with table service and made-to-order meals.
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