Australia coffee sales fall as prices climb higher
Fri, 2nd Oct 2026 (Today)
Coffee cup sales in Australia fell 5.9% in 2025 while average prices rose 6.6% to $5.83, according to Square, pointing to weaker consumer demand as café prices climb.
Data from the payments company's continuing sellers showed Australians bought fewer coffees than a year earlier, even as the average price per cup rose from $4.75 in 2021 to $5.83 in 2025. Spend per coffee transaction also increased over that period, from $6.79 to $8.04, while cups per transaction edged down from 1.43 to 1.38.
The figures suggest cafés are still taking more money per transaction, but from lower cup volumes. A weekday coffee habit at 2025 prices would cost $1,516 a year, AUD $281 more than in 2021.
Even so, 2025 cup volume remained 54% above 2021 levels, suggesting demand is still stronger than it was four years ago despite the latest pullback. That longer trend complicates the picture for café operators facing rising costs while trying not to deter regular customers.
State differences
Prices varied widely by state and territory. The Northern Territory recorded the highest average in 2025 at $6.41 a cup, while the ACT was lowest at $5.36. On a 260-cup weekday habit, that amounts to an annual gap of AUD $273.
Queensland posted the largest increase from 2021, with average prices rising by AUD $1.17 a cup, or about 24%. Victoria reached $6.11, New South Wales $5.54, Western Australia $5.79, South Australia $5.77 and Tasmania $5.77.
The data reflects continuing-seller averages rather than identical drinks, meaning regional differences may capture both pricing and the mix of products sold. Even so, the figures underline how local markets are shaping the cost of a routine purchase.
City pricing
Within major cities, the gap between neighbourhoods was also pronounced. In Melbourne, the CBD averaged $6.09, Brunswick $6.05 and Docklands $5.26 in the year-to-date sample, creating an 83¢ difference between the highest and lowest of those locations. Across 260 cups, that would amount to about AUD $216.
In Sydney's selected sample, Surry Hills averaged $6.05 while North Sydney came in at $5.24, a gap worth about AUD $211 over 260 weekday coffees. Elsewhere, Coolum Beach and Caloundra on the Sunshine Coast were both above $6.50, while Southport on the Gold Coast averaged $5.86.
Perth's listed locations showed a narrower range, from $5.75 to $5.93. Adelaide CBD, the only Adelaide location meeting the sample threshold, averaged $6.22.
Changing tastes
The product mix also points to changing menu economics. Mocha recorded the largest listed price rise, climbing from $4.82 in 2021 to $6.34 in the 2026 year-to-date sample, or about 32%.
Among the latest listed averages, matcha was the most expensive at $8.79, followed by iced coffee at $7.57 and cold brew at $7.48. Iced latte averaged $6.94, chai $6.50 and mocha $6.34, while hot chocolate came in at $5.82, latte at $5.80, cappuccino and espresso at $5.56, and long black at $5.48.
Despite those shifts, local preferences remained stable. The leading espresso drink was unchanged from 2021 to the 2026 year-to-date period in the five states examined: cappuccino in New South Wales, latte in Victoria and South Australia, and flat white in Queensland and Western Australia.
The flat white stood out for another reason: its price remained largely unchanged over five years at about $4.46, making it an exception to the broader rise in coffee prices.
Buying patterns
The broader café visit appears to have changed less than the headline coffee price. In 2025, 64.1% of beverage-containing café bills were beverage-only, while 35.9% also included food. That compares with 63.9% and 36.1% in 2021.
Time-of-day patterns were also consistent. Between 2021 and the 2026 year-to-date period, the hours from 8am to 10:59am accounted for 47.5% of cups sold. The 10am hour narrowly led 9am, with both rounding to 16.4%.
Friday remained the busiest day, averaging about 30% more cups sold than Monday. Every annual peak day between 2021 and 2025 fell on a Friday, with the highest single-day total in 2025 reaching 902,596 cups.
Cash use continued to decline across café transactions. In 2025, the reported cash share ranged from 11.3% in Western Australia to 15.0% in New South Wales.