Fascinating.
The coffee culture in Australia, well-established and pervasive, is now considered an interesting and relatively accurate barometer of the national economy.
As purse strings tighten, consumer confidence falls and WFH (working from home) contracts, the sales and consumption of instant coffee booms. Supermarkets are reporting buoyant sales of Nescafe and competitive brands.
Overall, national coffee consumption is relatively constant. Financial outlays are declining. There are parallels to the switch to discount supermarket Aldi, and to lower priced house brands.
It is the composition of the purchase and consumption trends that is capturing the attention of economists, psychologists and consumer behaviourists.
Barista-made coffee sales are suffering. Businesses are welcoming staff-members back to offices and premises with well stocked kitchens and refrigerators (for milk in many guises). Some are offering new appliances and coffee pods and capsules. Each is impacting the revenue of coffee lounges.
CONSIDERED PURCHASE
A national series of 12 focus groups conducted by Marketing Focus in the period 15-26 April among adult Australians (18-63 years of age) has revealed significant buying patterns and consumption choices. They provide important indicators to business owners, managers and consumers.
Among the research findings highlights are:
FORCED CHOICE OTPIONS
Preferences when choosing to reduce expenditure on coffee.
(in descending order of nomination)
· Reduce daily consumption – barista-made.
· Reduce cup size.
· Reduce frequency of barista-made.
· Consume more instant coffee.
· Reduce complementary purchases – muffins etc.
Noticeably, contemplating alternative outlets, service stations and fast-food offers were rated incidental considerations.
Weekly savings on outlays for coffee were predominantly in the range of $10.00-$20.00.
A majority of focus group participants considered taste, personal service, punctuality and positive purchase experiences were more important than the price of barista-made coffee.
When implementing personal budgetary constraints, the volume purchased was favoured to changing outlets or brands.
The desire for satisfaction derived from the value associated with “caffeine-rush” coffee centred on early mornings. Lunchtime “top-ups” were the most expendable, followed by mid-morning purchases.
Fewer than 5% of participants reported “regular” or “usual” purchases and consumption of barista-made coffee in mid-afternoon and after work periods.
DISCRETIONARY PURCHASE RANKINGS
Less than one in eleven focus group participants considered barista-made coffee was a discretionary purchase, particularly early mornings.
Reduced prices after 10.00am would not significantly influence the purchase and consumption of coffee from retail coffee outlets.
OVERRIDING KEY INFLUENCE
For those participants who stated that their personal consumption of barista-made coffee had reduced during the past six months, more than 90% nominated one key influence, being:
COST OF LIVING PRESSURES
RESEARCH ANALYSIS
Lead researcher, Barry Urquhart of Marketing Focus said:
“These findings are interesting, and indicative. They do not establish causal relationships(that is cause-affect). Rather they are casual in nature and provide
important overviews and insights, which may reinforce certain intuitions.
Coffee consumption perse, is not considered by many consumers to be discretionary. Emotion is strong in decision making, with brands, relationships
with frontline service providers and perceived value being considered influential and determining.
Cheaper options, including coffee from service stations and fast-food outlets
were, in the main, not perceived to be appealing options when considering personal budgetary constraints.
There are implications for business owners and managers in attracting staff-members back to places of work (WFH – working from home) and the locations and appropriate provisions for team meetings and in-business interactions with clients, associates and suppliers.
Apparent is the fact that the Australian coffee culture survives, and consumption is relatively consistent within a tightening economy, which is being impacted by widespread cost-of-living considerations. It is genuinely an indicative barometer of the national economy.”
FOR INTERVIEWS:
CONTACT:
Barry Urquhart
Marketing Focus
M: 041 983 5555