Australia a nation of coffee drinkers

Coffee appreciation aboard the Pacific Dawn. Photo: Contributed

AUSTRALIA is a nation of coffee drinkers, according to analysis which shows an expanding "cafe culture" and trailing tea sales.

Australians are forecast to spend $773.5 million on coffee beans and instant coffee for brewing at home this year.

This is compared to $452.6 million spent on tea, according to research released this week by Datamonitor.

Coffee sales - which do not include spending on takeaway coffees or on coffees consumed in cafes - were forecast to hit almost $800 million in 2013.

"Australia, unlike other Asian countries, boasts a traditionally strong coffee culture started by European immigrants," says Datamonitor senior consumer analyst Niraj Lalka.

"Today, coffee drinking has become such an integral part of the Australian lifestyle that it has led to the explosion of many specialised coffee shops further fuelling the growth of the coffee sector."

The study was limited to retail sales of products linked to drinks consumed in the home, though Mr Lalka said there were also anecdotal signs of strong growth in out-of-home coffee consumption and "more consumers adopting the idea of cafe culture".

Instant coffee accounted for about 80 per cent of all coffee consumed in the home, according to the Hot Drinks in Australia to 2013 report.

It projects that Australians will buy 23 million kilograms of coffee products this year, rising slightly to 23.4 million in 2013.

Annual spending on coffee products would rise to $798.5 million.

The report said that unlike coffee, tea was consumed almost exclusively in the home.

Tea products were forecast to increase from 15.4 million kilograms this year to 16.5 million kilograms in 2013, with annual spending to rise to $473.1 million.

"Due to its health and medicinal benefits, green tea and herbal tea have found special acceptance among the health conscious Australian consumers," Mr Lalka also said.