Nescafe remains leader in Aussie instant coffee market

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Research released from Roy Morgan has found that despite a decline in the instant coffee market, Nescafe remains a favourite amongst Australian consumers.

The research states that out of the 38 percent of Australians that bought instant coffee in the 12 months leading up to March 2013, more than half of them bought Nescafe.

The coffee company’s closets competitors Moccona came in at 11 percent, (up from 10 percent in March 2009) while International Roast represented only 3 percent.

The research noted, however, that consumer preferences differed slightly from state to state with Queenslanders holding a 13 percent preference towards Moccona, and Tasmanians holding a 7 percent preference towards International Roast.

The percentage of Australians who purchased instant coffee has declined from 42 percent in the year to March 2009, to 38 percent in the 12 months to March 2013.

Roy Morgan’s industry communications director, Norman Morris noted that coffee companies need to understand their consumers in order to stay competitive, noting that despite holding the market leading position, Nescafe’s competitors are gaining ground.

“Over the last five years there has been a small decrease in the proportion of Australians purchasing instant coffee in an average four-week period, while sales of fresh coffee have remained stable. During this time, the number of Australians visiting cafés has risen, which may be impacting on instant coffee sales, either directly – as an alternative to instant coffee consumption, or indirectly, by creating a taste for fresh coffee,” said Morris.

“Market-leader Nescafé has declined in popularity, as Moccona and supermarket brands have gained ground.”

“It’s interesting to note the differences in brand preference between the states, with Queensland residents showing a slightly higher preference for Moccona, and Tasmanian residents more likely to purchase International Roast.

“To remain competitive in this changing market, coffee companies need to understand their customers and how they differ from those of other brands.”