Cafe culture grows as instant coffee sales fall

Coffee snobs rejoice. Fewer Aussies are reaching for the instant coffee jar and more are flocking to cafes for their caffeine fix.

New research from Roy Morgan shows the sale of instant coffee has declined in the last five years while more people are opting for fresh brews.

But among the instant coffee brands, Nescafe remains the most popular.

In the 12 months to March, 38 per cent of Australians aged 14 or older bought instant coffee (excluding decaf) in an average four-week period, down from 42 per cent in the year to March 2009.

More than half of them - 21 per cent of the population - bought Nescafé.

Despite its declining popularity, Nescafé (21 per cent) maintains its market lead over closest competitors Moccona (11 per cent) and International Roast (3 per cent).

While Nescafé is the top brand purchased across all states, other brand preferences vary slightly between states.

Queenslanders are slightly more likely (13 per cent) to buy Moccona, while a higher proportion of Tasmanians (7 per cent) like International Roast compared to other states.

Roy Morgan Research industry communications director Norman Morris says sales of fresh coffee have remained stable.

"Over the last five years there has been a small decrease in the proportion of Australians purchasing instant coffee in an average four-week period," he said.

"During this time the number of Australians visiting cafes has risen, which may be impacting on instant coffee sales either directly - as an alternative to instant coffee consumption - or indirectly, by creating a taste for fresh coffee."

Market-leader Nescafé has declined in popularity as Moccona and supermarket brands gain ground.

"It's interesting to note the differences in brand preference between the states, with Queensland residents showing a slightly higher preference for Moccona, and Tasmanian residents more likely to purchase International Roast," he said.

"To remain competitive in this changing market, coffee companies need to understand their customers and how they differ from those of other brands."

Source: The Courier Mail, 10 July 2013