On firm grounds: Revenue grows as demand for high-quality coffee continues to rise

Australia’s coffee culture has supported the Coffee Shops industry’s growth over the past five years. As coffee drinking has continued to grow in popularity, the number of small boutique coffee houses has increased over the period, particularly in inner-city locations where office workers congregate. Coffee drinking has become entrenched in the daily routines of many Australian consumers, supporting industry demand. As a result, industry revenue is expected to rise at an annualised 2.7% over the five years through 2018-19, to $3.8 billion. This includes expected revenue growth of 0.3% in the current year.Industry competition has intensified over the past five years as more operators have entered...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Australia's coffee culture has supported industry revenue growth over the past five years
  • Independent coffee shops with niche products are largely outperforming larger coffee chains
  • Price, convenience and location will increasingly become key determinants of industry success
  • Industry Report - Industry Investment Chapter

    The Coffee Shops industry exhibits moderate capital intensity. For every dollar spent on capital costs in 2018-19, industry operators will spend an estimated $7.93 on wages. Operators require labour for coffee preparation, food handling, cleaning, customer service and administrative functions. Demand for coffee from a particular operator can be largely driven by the skills of the barista, further driving up labour costs.Industry operators often do not require significant capital investment beyond a coffee machine. However, coffee machines are forecast to become increasingly sophisticated and expensive over the next five years as coffee makers aim to increase output. This trend will place upward pressure on the industry's capital intensity. How...purchase to read more.

    Additional Insights for the Coffee Shops Industry

    IBISWorld has determined the most important Key Success Factors for the Coffee Shops are:

  • Business expertise of operators
  • Access to multiskilled and flexible workforce
  • Effective quality control
  • 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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    What's in this report

    What is the Coffee Shops Industry?

    Industry operators sell coffee, other hot and cold beverages, and light snacks to consumers. The industry excludes establishments with table service and made-to-order meals.

    Industry Products
  • Hot coffee
  • Other hot beverages
  • Cold beverages
  • Food
  • Industry Activities
  • Serving coffee
  • Serving hot beverages
  • Serving cold beverages
  • Serving cakes and other light snacks
  • Coffee shop operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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
  • Profitability
  • Competition
  • Table: Coffee Shops Industry Revenue Outlook

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

  • 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
  • Other hot beverages
  • Cold beverages
  • Chart: Coffee Shops Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Highest income quintile
  • Fourth income quintile
  • Third 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
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Coffee Shops

  • Basis of Competition
  • Internal competition
  • External competition

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

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

  • 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
    Table: Industry Data for the Coffee Shops Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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 developing nations at fair prices, ensuring better wages and conditions for workers.
  • Food Standards Australia New Zealand
  • The agency responsible for developing and administering requirements for food safety and labelling in Australia and New Zealand.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Coffee Shops market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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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