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Instant coffee sales down

CoffeeFresh coffee, preferably served by a barista in the newest artisanal cafe, is beating instant coffee in terms of sales.

A recent study shows that the proportion of Australians buying instant coffee has declined, while fresh coffee sales have increased. But this does not mean the end for instant coffee.

“Although more grocery buyers are purchasing fresh coffee than they were five years ago, this growth hasn’t been steep enough to be responsible for instant coffee’s total decline. The continued rise in cafe visitation could also be a factor, with an ever-increasing proportion of the population going to cafes for a coffee/tea in any given three months,” said Norman Morris, industry communications director, Roy Morgan Research.

“So while instant coffee looks to be on the wane, the growth of the smaller brands suggests that it’s not all over yet.”

Between April 2011 and March 2016, the proportion of Australian grocerybuyers 14+ who bought instant coffee (not decaf) in an average four-week period slipped from 59.1 per cent to 49.4 per cent. Over the same time period, the proportion buying fresh coffee in any given four weeks rose from 28.2 per cent to 30.2 per cent .

Long-time leader Nescafe remains the most popular brand of instant coffee by a hefty margin, with its different varieties being purchased by 49.7 per cent  of all instant-coffee buyers in an average four weeks. Indeed, three Nescafe blends — Blend 43, Gold Blend and Espresso — feature among the country’s 10 top-selling instant coffees.

However, this represents a substantial decrease from March 2012, when 57.0 per cent of instant-coffee buyers opted for a Nescafe blend.

“Despite its downturn, Nescafe retains a very comfortable category lead – although with Moccona’s consistent growth, the coffee giant needs to be vigilant, ensuring that it is targeting the most appropriate audience. For example, our data shows that Nescafe buyers are most likely to be aged 50 or older and belong to lower-income brackets,” said Morris.

Moccona, purchased by 33.6 per cent of instant-coffee buyers in an average four weeks, is the country’s second-favourite brand.



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