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June 22, 2026 · BeanScene

Instant Coffee Dominates Australian Market, Younger Drinkers Drive Premium Growth

A recent survey of over 3,600 Australian consumers reveals that instant coffee remains the dominant format, particularly for older demographics. Younger drinkers are driving growth in premium segments like ground coffee and pods, indicating a divided market.

Photo: Flux

A new report on Australian coffee consumption has found that instant coffee remains the most prevalent format, especially among older consumers. A survey of more than 3,600 people indicates that while seven in ten Australians drink coffee daily, the methods of preparation vary significantly by age, with younger generations showing a preference for premium and alternative brewing methods.

According to the findings, instant coffee is the primary choice for 69% of consumers aged 65 and over. This figure is slightly lower for the 55 to 64 age group, at 59%, though this segment represents the most dedicated coffee drinkers, with 91% consuming the beverage. The report highlights the enduring popularity of instant coffee, citing convenience and cost-of-living pressures as key contributing factors.

In contrast, younger consumers are driving growth in other categories. Ground and filter coffee see their highest adoption among those aged 18 to 44, with 27% of the 35-to-44 bracket using grounds for their daily brew. Coffee pods are the second most popular format overall at 17%, peaking at 28% usage within the 45-to-54 age group. These trends suggest a segmented market with distinct opportunities in both the convenience and premium specialty sectors.

FAQ

According to a recent survey, instant coffee remains the most popular format, used by 69% of consumers aged 65 and over and 59% of those aged 55 to 64.

Ground and filter coffee are most popular with consumers in the 18 to 44 age bracket, with 27% of those aged 35 to 44 using coffee grounds for their daily brew.

Younger coffee drinkers in Australia are driving growth in premium and experimental coffee formats, including pods and ground coffee.

Source: BeanScene

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