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Hot drinks maintain steady value growth amid inflation easing and shifting consumer priorities
In 2025, retail value sales of hot drinks in Australia rose at a mid-single-digit rate, with all major categories achieving positive value growth despite uneven volume performance. Inflation remained the primary driver of value expansion as manufacturers and retailers navigated elevated global commodity costs, particularly for green coffee sourced from markets experiencing crop volatility such as Brazil and Colombia, alongside domestic pressures including higher energy and logistics expenses. These factors collectively kept prices high across coffee, tea and other hot drinks throughout the year.
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Overview:
Understand the latest market trends and future growth opportunities for the Hot Drinks industry in Australia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Coffee
- Tea
- Other Hot Drinks
If you're in the Hot Drinks industry in Australia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Hot Drinks in Australia report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Hot Drinks in Australia?
- To what extent are health considerations impacting consumption of Hot Drinks in Australia?
- What are the traditional preferences in Hot Drinks in Australia? To what extent are these tastes changing amidst increasing international influence and the growth of chained cafés?
- How are changing demographics (for example, an ageing or predominantly young population) determining consumption of Hot Drinks in Australia?
- Which are the leading brands in Hot Drinks in Australia?
- How are products distributed in Hot Drinks in Australia?
- How is the rise of e-commerce changing the retail and competitive landscape?
- Have home seclusion and social distancing measures following COVID-19 benefited sales of Hot Drinks?
- Where is future growth expected to be most dynamic?
Hot Drinks in Australia
Hot drinks maintain steady value growth amid inflation easing and shifting consumer priorities
KEY DATA FINDINGS
Health, functionality and clean-label trends reshape product development
Ethical sourcing and sustainability strengthen brand positioning
Matcha shifts from niche trend to mainstream staple
Outlook shaped by stabilising prices, renewed confidence and evolving consumer priorities
Functional reformulation and wellness-led innovation to accelerate
Sustainability set to become a baseline expectation
Nestlé maintains category leadership through breadth, innovation and domestic investment
Coffee stands as the most dynamic category, fuelled by both premium and affordable innovation
Supermarkets remain the dominant channel supported by value seeking and private label expansion
E-commerce remains the fastest-growing channel through expanded fulfilment and digitally led retail execution
FOODSERVICE VS RETAIL SPLIT
Table 1 Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2020-2025
Table 2 Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2020-2025
Table 3 Retail Sales of Hot Drinks by Category: Volume 2020-2025
Table 4 Retail Sales of Hot Drinks by Category: Value 2020-2025
Table 5 Retail Sales of Hot Drinks by Category: % Volume Growth 2020-2025
Table 6 Retail Sales of Hot Drinks by Category: % Value Growth 2020-2025
Table 7 Foodservice Sales of Hot Drinks by Category: Volume 2020-2025
Table 8 Foodservice Sales of Hot Drinks by Category: % Volume Growth 2020-2025
Table 9 Total Sales of Hot Drinks by Category: Total Volume 2020-2025
Table 10 Total Sales of Hot Drinks by Category: % Total Volume Growth 2020-2025
Table 11 NBO Company Shares of Hot Drinks: % Retail Value 2021-2025
Table 12 LBN Brand Shares of Hot Drinks: % Retail Value 2022-2025
Table 13 Penetration of Private Label in Hot Drinks by Category: % Retail Value 2020-2025
Table 14 Retail Distribution of Hot Drinks by Format: % Volume 2020-2025
Table 15 Retail Distribution of Hot Drinks by Format and Category: % Volume 2025
Table 16 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Breakdown 2025-2030
Table 17 Forecast Sales of Hot Drinks by Retail vs Foodservice: % Volume Growth 2025-2030
Table 18 Forecast Retail Sales of Hot Drinks by Category: Volume 2025-2030
Table 19 Forecast Retail Sales of Hot Drinks by Category: Value 2025-2030
Table 20 Forecast Retail Sales of Hot Drinks by Category: % Volume Growth 2025-2030
Table 21 Forecast Retail Sales of Hot Drinks by Category: % Value Growth 2025-2030
Table 22 Forecast Foodservice Sales of Hot Drinks by Category: Volume 2025-2030
Table 23 Forecast Foodservice Sales of Hot Drinks by Category: % Volume Growth 2025-2030
Table 24 Forecast Total Sales of Hot Drinks by Category: Total Volume 2025-2030
Table 25 Forecast Total Sales of Hot Drinks by Category: % Total Volume Growth 2025-2030
COUNTRY REPORTS DISCLAIMER
Summary 1 Research Sources
Coffee in Australia
KEY DATA FINDINGS
Price-led value growth amid resilient café culture and evolving at-home consumption
Premiumisation at home and evolving value preferences
Strong momentum in fresh coffee beans
Expectations for steady but moderating value growth
Expansion of cold, ready-to-drink, and hybrid coffee formats
Sustainability and ethical sourcing as long-term growth drivers
Nestlé maintains leadership through convenience, innovation, and café-style experiences
Private label strengthens position through value-led premiumisation
Supermarkets remain the dominant distribution channel
E-commerce remains the fastest-growing channel
Table 26 Retail Sales of Coffee by Category: Volume 2020-2025
Table 27 Retail Sales of Coffee by Category: Value 2020-2025
Table 28 Retail Sales of Coffee by Category: % Volume Growth 2020-2025
Table 29 Retail Sales of Coffee by Category: % Value Growth 2020-2025
Table 30 Retail Sales of Fresh Ground Coffee Pods by Hard vs Soft: % Volume 2020-2025
Table 31 NBO Company Shares of Coffee: % Retail Value 2021-2025
Table 32 LBN Brand Shares of Coffee: % Retail Value 2022-2025
Table 33 Forecast Retail Sales of Coffee by Category: Volume 2025-2030
Table 34 Forecast Retail Sales of Coffee by Category: Value 2025-2030
Table 35 Forecast Retail Sales of Coffee by Category: % Volume Growth 2025-2030
Table 36 Forecast Retail Sales of Coffee by Category: % Value Growth 2025-2030
Tea in Australia
KEY DATA FINDINGS
Growing wellness demand and matcha-led momentum reshape category performance
Tea sees moderate value growth as matcha drives renewed interest among younger consumers
Green tea emerges as the most dynamic category as matcha moves firmly into the mainstream
Tea expected to maintain steady value growth, driven by wellness-led innovation
Gifting culture becomes an increasingly important volume driver across premium tea
Functionality continues to shape innovation as tea broadens its role in daily wellness routines
Twinings maintains leading position through broad portfolio, wellness focus, and strong brand equity
ITO EN emerges as the most dynamic company, supported by rising matcha demand and localised production
Supermarkets remain the primary distribution channel as retailers expand wellness-focused assortments
E-commerce sees rapid growth as digital investment, convenience, and subscriptions expand reach
Table 37 Retail Sales of Tea by Category: Volume 2020-2025
Table 38 Retail Sales of Tea by Category: Value 2020-2025
Table 39 Retail Sales of Tea by Category: % Volume Growth 2020-2025
Table 40 Retail Sales of Tea by Category: % Value Growth 2020-2025
Table 41 NBO Company Shares of Tea: % Retail Value 2021-2025
Table 42 LBN Brand Shares of Tea: % Retail Value 2022-2025
Table 43 Forecast Retail Sales of Tea by Category: Volume 2025-2030
Table 44 Forecast Retail Sales of Tea by Category: Value 2025-2030
Table 45 Forecast Retail Sales of Tea by Category: % Volume Growth 2025-2030
Table 46 Forecast Retail Sales of Tea by Category: % Value Growth 2025-2030
Other Hot Drinks in Australia
KEY DATA FINDINGS
Inflationary pressure, cocoa volatility, and rising wellness trends shape category performance
High cocoa prices and health-led consumer behaviour constrain chocolate-based powders
Matcha latte emerges as the most dynamic segment as functional and lifestyle trends boost appeal
Modest category growth expected despite ongoing commodity volatility and rising competition
Functional diversification becomes central to category innovation as consumers seek nutritional indulgence
Sustainability becomes a key lever of differentiation as consumers expect planet-friendly indulgence
Nestlé maintains leadership through strong brand equity, domestic production, and functional expansion
Morning Made accelerates growth through wellness positioning, digital engagement, and national retail expansion
Supermarkets remain the primary distribution channel, supported by broad reach and health-led assortment expansion
E-commerce grows rapidly as convenience, digital discovery, and D2C models expand category reach
Table 47 Retail Sales of Other Hot Drinks by Category: Volume 2020-2025
Table 48 Retail Sales of Other Hot Drinks by Category: Value 2020-2025
Table 49 Retail Sales of Other Hot Drinks by Category: % Volume Growth 2020-2025
Table 50 Retail Sales of Other Hot Drinks by Category: % Value Growth 2020-2025
Table 51 NBO Company Shares of Other Hot Drinks: % Retail Value 2021-2025
Table 52 LBN Brand Shares of Other Hot Drinks: % Retail Value 2022-2025
Table 53 Forecast Retail Sales of Other Hot Drinks by Category: Volume 2025-2030
Table 54 Forecast Retail Sales of Other Hot Drinks by Category: Value 2025-2030
Table 55 Forecast Retail Sales of Other Hot Drinks by Category: % Volume Growth 2025-2030
Table 56 Forecast Retail Sales of Other Hot Drinks by Category: % Value Growth 2025-2030
COUNTRY REPORTS DISCLAIMER
The following categories and subcategories are included:
Hot Drinks
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- Fresh Coffee Beans
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- Fresh Ground Coffee Pods
- Standard Fresh Ground Coffee
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- Instant Standard Coffee
- Instant Coffee Mixes
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- Loose Black Tea
- Tea Bags Black
- Fruit/Herbal Tea
- Green Tea
- Instant Tea
- Other Tea
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- Chocolate-based Flavoured Powder Drinks
- Malt-based Hot Drinks
- Non-Chocolate-based Flavoured Powder Drinks
- Other Plant-based Hot Drinks
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This report originates from Passport, our Hot Drinks research and analysis database.
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