Six Important Trends Shaping Australian Coffee

The Australian coffee industry continues to evolve rapidly. Looking back at 2017, we can see clear shifts that are reshaping the market and influencing how roasters, cafés, and consumers engage with coffee. Here are six key trends driving change.

1. Medals & Awards – Authenticity Under Question

Coffee competitions have become marketing tools, with “cheque book coffees” entered for medals but rarely sold to consumers.
Many roasters and industry veterans are frustrated by bait‑and‑switch tactics, where medals are applied to everyday blends that never won.
Calls are growing for competitions to use blind control coffees to test real roasting skill rather than sourcing rare lots.

2. Roaster Discontent & Market Fragmentation

Experienced roasters are increasingly skeptical of competitions and their flawed processes.
Some medals are won using coffees roasted on other companies’ equipment, raising questions of fairness and reproducibility.
The industry is pushing for greater transparency and validation in competition scoring.

3. Micro‑Roasters Struggling in a Saturated Market

Between 2010–2017, Australia saw an explosion of over 650 new coffee brands, creating a “micro‑roaster bubble.”
With coffee consumption growing only ~4% annually, oversupply has led to closures and market exits.
Many new entrants lack business plans, relying on passion rather than financial sustainability.
Shared roasting facilities have lowered barriers to entry, but without café cash flow or vertical integration, survival is tough.

4. Coffee Roasting Shake‑Up Ahead

Raw coffee prices have remained stable, but volatility is expected.
Rising costs in real estate, logistics, energy, and labour will pressure small roasters.
Consolidation may be inevitable, as scale efficiencies become critical for long‑term survival.
Ego and passion still dominate, but mergers could unlock synergies and consistency.

5. Retail Coffee – A Brutal Turning Point

Traditional retail is under siege, with cafés and strip shops struggling against online shopping and rising rents.
Many suburban cafés are up for sale, and vacant shopfronts are increasing.
Consumers are saving for deep discounts, bypassing local stores, and buying online.
The shift highlights the need for cafés and roasters to embrace e‑commerce and digital retail strategies.

6. Logistics & Direct Trade Challenges

E‑commerce growth is outpacing freight capacity, creating delays and higher costs.
AusPost and StarTrack are consolidating operations, with surcharges and fees likely to rise.
Direct trade coffee sourcing remains more hype than reality, with logistical risks and inconsistent quality.
Brokers still play a vital role in ensuring quality control and reliable supply chains.

The Future of Australian Coffee

Consumers are tired of over‑stylized “hipster coffee” and want consistency, balance, and flavour.
Industrial‑grade roasting systems are becoming essential for scalability and precision.
The next phase of growth will reward roasters who focus on quality, transparency, and sustainable business models rather than hype.

We know that Australia has high expectations when it comes to their coffee. As a dedicated online coffee bean platform, we do our best to keep our prices down and ship as quickly as humanly possible.