Research News Live

From piccolos to percolators: How Australians’ coffee consumption habits have changed during COVID-19

MEDIA RELEASE: 24 April 2020: Coffee is to Australia what tea is to England—arguably the national drink after beer—synonymous with socialising, avocado on toast and the Aussie sunshine. However, since the start of the COVID-19 lockdown in Australia, our coffee consumption habits have shifted.

Australians are known for their coffee shop culture. According to Nielsen Consumer Insights research, one-in-two (53%) Australians visited a coffee shop or cafe at least once a month in 2019. However, the latest omnichannel data from Uno Group revealed that in the four weeks to April 7,
2020, the number of trips to coffee shops dropped significantly (-39%) compared with the prior four-week period.

Instead, we have started to drink more coffee at home. Nielsen Homescan data showed that
Australian households spent an additional 37% on coffee from grocery outlets for in-home consumption in the four weeks leading up to March 22, compared to a year ago.

Sarah Deas, Director for Nielsen Retailer Services, said: “ It appears that some Aussie consumers may be missing their local barista. Our research has revealed that the significant increase in supermarket coffee sales has been driven by more premium coffee options including coffee beans and ground coffee.”

Relative to their spending behaviour across total grocery, households under 35 years old without children are the group most likely to have increased their spend on coffee during this period, particularly for premium instant coffee, ground coffee and coffee beans. It is likely that many of this group have shifted to working from home during the pandemic lockdown and are drinking coffee here rather than picking up the flat white on the way to work.

The shift in coffee consumption is just one example of how consumer behaviour during the pandemic has influenced strong growth in specific grocery categories as Australians spend more time eating and drinking at home.

Survey data from Nielsen’s Global Consumer Sentiment Report revealed 28% of Australians who use food delivery services are now using them much less frequently; while 40% say they are eating at home more often.

Deas said: “In recent weeks, we have seen a number of pantry categories experience very strong growth—such as Asian and Indian cooking ingredients—indicating that for some, cooking is replacing the Friday night takeaway.”

“For manufacturers and retailers, it has never been more important to understand how consumers are switching their spending across the supermarket. Applying the coffee example more broadly, there is scope to premiumise, with many consumers looking for little luxuries during these uncertain times,” concluded Deas.

Website: Nielsen

Photo by Nathan Dumlao on Unsplash

mm
About The Research Society 637 Articles
The Research Society is the peak body for research, insights and analytics professionals in Australia. It has a diverse membership of individuals at all levels of experience and seniority within agencies, consultancies, client-side organisations, the non-profit and government sectors, support services as well as institutions and the academic community. As well as over 2,000 individual members, the Research Society has 100 company and client partners, with the number continuing to grow. The Research Society research professionals and company partners commit to and are regulated by the Research Society Code of Professional Behaviour.