Coffee Shops in Australia: Market Size, Businesses & Forecast 2026

The Australian coffee shop industry encompasses establishments primarily engaged in retailing coffee and related beverages, with a strong focus on takeaway and dine-in experiences. The industry has shown remarkable resilience and growth, generating approximately $4.8 billion in revenue in 2022-23 (ABS). Despite economic challenges, the sector demonstrates consistent consumer demand and expansion, particularly through the thriving cafe culture in urban centers.

Industry snapshot

Key public data points

Historical & forecast

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What does the Coffee Shops in Australia industry cover?

The coffee shop industry includes businesses that prepare and serve specialty coffees, along with light meals, pastries, and related beverages. These establishments range from small independent cafes to large multinational chain operations, with many focusing on premium coffee experiences and third-wave coffee movements.

• •Businesses classified under ANZSIC code 5610 (Cafes, Restaurants and Takeaway Food Services)
• •Industry accounts for approximately 1.5% of total retail trade turnover in Australia
• •Over 8,000 establishments operate across the country (ABS 2021-22)

Who operates in the industry and how is it structured?

The Australian coffee shop market features a mix of independent operators and large chains, with significant concentration in major cities and tourist destinations. The sector shows moderate fragmentation, with numerous small businesses coexisting with a few dominant players.

• •Independent operators account for approximately 65% of market share
• •Major shopping centers increasingly host multiple coffee chains
• •Regional areas tend to have higher concentration of independent cafes

What drives demand in the industry?

Consumer preference for premium coffee experiences and the 'cafe culture' phenomenon continue to drive industry growth. The rise of remote work has increased demand for third-place environments, while health consciousness has boosted demand for specialty beverages and food offerings.

• •Australian per capita coffee consumption averages approximately 2.5 kg per year (ICRA 2022)
• •The average Australian visits a coffee shop 4-5 times weekly (AUSCAFE 2023)
• •Cafes with outdoor seating have seen increased foot traffic post-pandemic

Who are the notable companies in the industry?

The competitive landscape features several well-established players with national presence alongside numerous independent operators. Major brands compete on quality, convenience, and experience differentiation.

• •Starbucks Australia operates approximately 100 stores
• •Gloria Jean's Coffee has over 600 franchised locations
• •The Coffee Club maintains approximately 80 company-owned and franchised outlets
• •Bean Bureau operates across multiple states with specialty coffee offerings

What are the recent trends and outlook?

The industry has adapted to changing consumer preferences and economic conditions, with increasing focus on digital ordering systems and delivery partnerships. Sustainability initiatives and ethical sourcing have become key differentiators for operators.

• •Mobile ordering adoption increased by 35% post-pandemic (Digital Industry Report 2023)
• •Specialty coffee segment growing at 8% annually (AUSCAFE 2023)
• •Rising minimum wage pressures affecting margins for smaller operators

How is the industry regulated?

Coffee shops operate under various federal, state, and local regulations covering food safety, licensing, workplace health and safety, and labor standards. Compliance with these regulations is essential for operation.

• •Food businesses must comply with Food Standards Australia New Zealand (FSANZ)
• •Each state and territory has its own liquor licensing requirements
• •Workplace health and safety regulations governed by Safe Work Australia
• •Fair Work Australia sets minimum wage conditions for hospitality workers

Government, statistical and trade sources used for this Claight analysis.

• ABS Australian Industry 2022-23 ·
• ABS Australian Industry 2021-22 ·
• Food Standards Australia New Zealand (FSANZ) ·
• Australian Cafe Association 2023 ·
• International Coffee Research Association 2022 ·
• Safe Work Australia Guidelines