While Zach from our Melbourne Office has been in the UK visiting the team, he has been sharing with them some of his thoughts on the Australian market, and what he has been witnessing over the last few years on all things coffee.
Australia, famously known as the land that fought off the coffee chains, has long been a leader in the Specialty coffee market, driving trends and exploring innovative processing methods and brewing devices. LCM too, began as a humble merchant in Australia before embarking on a mission to cater to bespoke independent roasters in the UK and Europe. So what's new, and what can we learn from our Australian counterparts?
Australia, famously known as the land that fought off the coffee chains, has long been a leader in the Specialty coffee market, driving trends and exploring innovative processing methods and brewing devices. LCM too, began as a humble merchant in Australia before embarking on a mission to cater to bespoke independent roasters in the UK and Europe. So what's new, and what can we learn from our Australian counterparts?
Trends come and go, but like with the age-old adage of “it's not a phase mum", the speciality roasters of Australia have entered a maturation stage. With over 30 years since the inception of independent speciality roasters, there have been a few phases and trends in our industry. Initially, everyone was striving to be unique, loud and different. However, the market now seems to be in a state of calm. Many iconic thought leaders have toned down their extreme fermentation approaches and consumers have spoken. We're seeing a wider array of roasters seeking good, clean, washed and naturally processed coffee. Less funk and more consistency are being echoed across blends, which are still the go-to house offering for most roasters in Australia, unlike the speciality scene in the UK. At this point, it's safe to say that everyone is solidifying their bases, establishing a strong and consistent identity, and focusing on consumers rather than the craft and roasting scene.
As we gain distance from the pandemic, we're seeing changes in how we consume coffee. One major change over the last two years is the rise of independent home and personal subscription services. Many roasters gained strong retail and home use momentum while their doors were shut. As a result, they have been refining their online and retail presence by utilising platforms like Shopify that enable repeat service subscriptions. Home use/retail purchasing appears to be a continued focus for many roasters, with the B2C market having a long way to go in converting more consumers to Specialty/Independent roasters from big-brand coffee.
We've also seen the rise of independent roasters being stocked in local supermarkets as a premium offering to challenge the old guard. This trend started slowly but now has a minimum of three name-brand roasters on shelves in most supermarkets, offering whole beans and a few grind options.
This trend will spread further as the next growth stage for speciality coffee, with the ease of access and commercialisation of speciality coffee products. Most roasters now offer a range of ways to enjoy their coffee – traditional whole beans, pods, cold cans, and specialty instant – amongst the most common. These methods are growing, and the home consumption market is still a relatively young segment of the specialty coffee market. It's seen as an effective way for coffee drinkers to continue enjoying high-quality coffee, supporting independent roasters, while dealing with the cost-of-living crisis. This trend will likely continue to grow as machinery manufacturers are now pushing into this space just as heavily as roasters with "specialty" pod machines, milk frothers, and accessible high-end espresso machines.
If you have more questions about Zach's thoughts on what's happening in the Australian coffee market, or just want a chat all things coffee, please reach out!
If you have more questions about Zach's thoughts on what's happening in the Australian coffee market, or just want a chat all things coffee, please reach out!