The rising cost of coffee is sparking conversation across Australia as increasing green coffee prices create challenges for both cafes and customers. Yet, Australians remain unwaveringly loyal to their daily brew, demonstrating resilience in their coffee-drinking habits despite economic pressures.
Coffee is deeply ingrained in Australia’s culture—over the past three months, 15.7 million Australians have grabbed a cup to go. But how much are they willing to pay to preserve their cherished rituals?
New research from Seven Miles and Lightspeed Research uncovers some eye-opening trends.
Most Australians are comfortable paying up to $5.50 for a small flat white, but when prices climb to $6.65, even the most devoted coffee enthusiasts start to hesitate.
Still, 84% expect to spend the same or more on coffee by 2025, with 42% attributing the increase to rising prices. Interestingly, fewer than 10% of consumers plan to cut costs by brewing more at home.
Regional preferences also tell a story, with Queenslanders willing to spend the most on their coffee, followed by residents of New South Wales, while Victorians are the most price-conscious.
However, one factor unites coffee drinkers nationwide: taste. A striking 73% of consumers rank flavour as their top priority when choosing a cafe, outweighing price or convenience.
Milk alternatives are also shaping purchasing habits. Almond milk leads the pack, followed by soy and oat milk. However, 86% of customers are unwilling to pay more than an additional 50 cents for alternative milk, and 31% believe there should be no surcharge at all.
For cafe owners, there’s a silver lining. Ben Irvine, Head of Trade Marketing at Seven Miles, emphasises the importance of quality.
“Across all age groups and right around Australia, coffee drinkers are still choosing quality over price. People know they can find a cheaper cup, but they’re willing to pay more for a coffee that truly delivers on taste. That’s why, even in tough times, cafés that focus on quality and consistency will keep their customers coming back.”
The key takeaway? Australians are fiercely loyal to their local coffee spots, ready to accept modest price increases, as long as the quality remains exceptional. And with flavour being the top priority, the future of Australian coffee culture remains robust and full of promise.
