Overview

Trouble brewing: Industry profit margins have taken a hit as competition intensifies

IBISWorld’s Coffee Shops market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Volatile world coffee prices have increased costs for industry players
  • In an effort to increase market share, operators have increased their efforts to improve quality

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    Industry Analysis & Industry Trends

    Australia's coffee culture has kept revenue brewing in the Coffee Shops industry over the past five years. The proliferation of coffee drinking has caused a dramatic increase in the number of small boutique coffee houses, especially in inner-city locations where office workers congregate. Coffee drinking has become entrenched in the daily routines of many Australian consumers, which supports industry demand even during widespread economic uncertainty. As a result, industry revenue is forecast to rise steadily by a compound annual rate of 4.0% over the five years through 2016-17. This includes a forecast increase of 2.8% in 2016-17, to total $2.5 billion...

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    What is the Coffee Shops industry?

    The Coffee Shops industry is in the mature stage of its life cycle. Over the 10 years through 2021-22, the industry's contribution to the economy (industry value added) is expected to rise by an annual rate of 2.0%, falling slightly below annualised GDP growth of 2.6%. This indicates that the industry is growing at a slower pace than the overall economy, as it moves into the mature stage of the life cycle.

    Despite this, there is an ongoing increase in the number of small independent coffee shops entering the industry. The Australian love affair with coffee has spurred ongoing demand for great coffees from boutique coffee makers. As a result, establishment and enterprise numbers are expected to grow strongly. Thi...

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    Additional Insights for the Coffee Shops Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Coffee Shops Industry are

  • Having a clear position in the market
  • Business expertise of operators
  • Access to multiskilled and flexible workforce
  • IBISWorld analysts also discuss how external factors such as Real household discretionary income and World price of coffee in the Coffee Shops industry impact industry performance..

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    Products & Brands

    Major products in this industry
    Hot coffee
    Other hot beverages
    Cold beverages
    Food
    Examples of brands in this Industry
    bb's Cafe
    Esquires Coffee
    Gloria Jean's Coffees

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Real household discretionary income
  • World price of coffee
  • Population aged 18 and older
  • Demand from cafes, restaurants and takeaway food services

  • Current Performance
  • Key trends
  • Profitability
  • Industry participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: Coffee Shops Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Coffee Shops Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Bakery Product Manufacturing
  • Dairy Produce Wholesaling
  • Fruit Juice Drink Manufacturing
  • Soft Drink and Pre-Packaged Food Wholesaling
  • Tea, Coffee and Other Food Manufacturing

  • Products & Services
  • Hot coffee
  • Food
  • Cold beverages
  • Other hot beverages
  • Chart: Coffee Shops Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Third income quintile
  • Fourth income quintile
  • Highest income quintile
  • Second income quintile
  • Lowest income quintile
  • Chart: Major Market Segmentation for the Coffee Shops Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Coffee Shops

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Coffee Shops Industry

  • Industry Globalization
    Major Companies
    Retail Food Group Limited
  • Table: Retail Food Group Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Coffee Shops Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Coffee Shops Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Coffee Chains
  • National or multinational networks of coffee shops, often large in operation with seating and a range of snacks and beverages both hot and cold
  • Fair Trade
  • Coffee sourced from growers that guarantee minimum working standards for employees.
  • Frappuccino
  • A cold beverage consisting of coffee and blended ice with a variety of flavours
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Coffee Shops:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Coffee Shops market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Coffee Shops, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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