Consolidation Down Under: coffee industry M&A on the rise in Australia

The acquisition of a small Adelaide coffee group is the latest example of how high costs and competition are changing Australia’s influential independent café scene

Australia is renowned for its fiercely independent café culture. Local independents have long been favoured over scaled coffee chains, with global giants such as Starbucks and Joe & The Juice finding limited success in a market where neighbourhood hospitality reigns supreme.

However, amid record green coffee prices, soaring operational costs, labour shortages and squeezed profit margins, Australia’s world-famous independent cafès are under pressure – leading to growing market consolidation.