- Breville achieved a record $1.53 billion in turnover this year
- Over the last 4 years, at-home coffee consumption has held steady
- However, out-of-home has fallen 11% as customer trust wanes
AUSTRALIAN appliance giant Breville Group, known as Sage in Europe, has recently reported a record performance, achieving $1.53 billion in revenues this year, marking a 3.5% growth.
This marks an agile recovery after disappointing first-half sales earlier this year. Over the last five years, Breville has more than doubled its sales overall.
This achievement, however, was not driven by its traditional kitchen appliances but by double-digit growth in its coffee machine segment. Particularly strong sales in the Americas, Australia, New Zealand, and South Korea offset declines in its Cooking and Food Prep categories.
Breville’s success can be attributed to its strategy of targeting the specialty coffee market—a niche segment within broader coffee consumption. Although the specialty market represents a small fraction of overall coffee drinkers, Breville’s bet on premium coffee-making equipment has paid off handsomely.
Since 2019, the company has followed an aggressive distribution strategy, including the acquisition of ChefSteps in 2019 and its one-product-per-country marketing model, which has expanded its international reach. Now, with more consumers looking to replicate café-quality brews at home, Breville has struck gold.
It strengthened its market position in March 2022, acquiring the Italian-based prosumer specialty coffee group LELIT, following the 2020 acquisition of coffee grinder manufacturer Baratza. The group has been steadily expanding, creating a “one-stop shop” for the specialty coffee consumer market.
Breville APAC President Mark O’Kelly has stated speed, “build once, use everywhere,” and efficiency as the top three pillars behind its success.
“Breville enjoys a positive reputation, often being listed as a best-in-class or amongst top quality equipment brewer in many consumer articles,” says Spencer Turer, Vice President of Coffee Enterprises.
“Its equipment is widely distributed and available through many popular online and local retailers, and brand recognition is facilitated by their distribution and inventory availability – they benefit from familiarity due to expansive merchandising.”
Yet, Breville’s performance raises the question: Is this trend unique to Breville, or are other coffee machine brands seeing similar growth?
Competitors like De’Longhi and Nespresso have also benefited from increased demand for premium coffee appliances, but a focus on prosumers—those who seek the expertise of a professional barista at home—appears to be what gives coffee machine brands an edge in the market.
Major espresso machine brands have invested heavily in the prosumer market. For example, De’ Longhi announced in 2021 that it would increase its stake in La Marzocco – a leading espresso machine brand with a portfolio of prosumer products.
Home coffee consumption is holding steady
The rise of Breville’s coffee machine sales is not happening in isolation.
According to the 2024 National Coffee Data Trends Market report, home coffee consumption has remained constant over the last four years, since the onset of the COVID-19 pandemic, while out-of-home consumption has steadily declined—from 45% in 2020 to just 36% today.
The pandemic significantly reshaped consumer habits, pushing people to replicate their favourite café experiences within their homes. Several factors are driving this trend.
One is the economic environment. Inflation and the rising cost of living have made consumers more cautious about their discretionary spending. Shrinkflation, surge pricing, skimpflation (when product quality declines without an explicit price change), and even brands’ breakage revenue thanks to gift cards have damaged consumer trust in café pricing and accountability.
For many, buying a high-end coffee machine is now seen as a cost-effective alternative to frequenting coffee shops. Even premium machines like those from Breville—some priced over $1,000—are perceived as long-term investments, particularly as café prices continue to rise.
The “prosumer” market within the coffee industry has also grown in prominence.
These consumers are not just casual coffee drinkers; they are enthusiasts willing to invest in top-tier grinders, espresso machines, and even milk frothers to perfect their brews. More amateur home baristas are emerging, eager to experiment with latte art and fine-tune their extraction methods.
This phenomenon is developing into a broader trend, as some consumers start to prioritise quality and control over convenience. Breville’s ability to anticipate this shift when it repositioned its product line in 2020 was pivotal to its recent success.
“Breville equipment appeals to both entry-level consumers and coffee aficionados (prosumers), based on different price levels and functionality,” says Spencer.
The broader implications of this trend go beyond coffee machines. Breville’s record sales underscore a shift in consumer behaviour post-pandemic, where at-home consumption is no longer just a convenience but a preferred choice.
Consumers are willing to spend on high-quality, durable goods despite economic uncertainty, suggesting a complex dynamic between cost-saving behaviour and the desire for luxury at home.
Are specialty coffee shops losing their appeal?
Breville’s success not only reflects changing consumption habits but also signals broader shifts in the coffee industry.
The demand for at-home coffee machines poses a growing threat to traditional coffee shops, especially in urban centres where rents and operating costs are already high. Many consumers now prefer brewing their morning cup at home, reducing foot traffic for coffee chains and independent cafés alike.
“A consumer always wants to experience good products, prices and beverages,” says Luis Fernando Velez, CEO and Founder of Amor Perfecto.
“With the development of coffee machines, making a good cup of coffee at home at a decent price becomes possible. People are tired of spending money on mediocre products in coffee shops.”
This has forced the industry to adapt—many cafés are now focusing on selling high-quality beans and accessories to cater to the growing legion of home baristas.
For Breville’s competitors, the stakes are high. Brands like De’Longhi and Nespresso, which also cater to the premium segment, must navigate a more crowded market.
As consumers grow more sophisticated in their preferences, the demand for innovation in coffee-making technology will likely intensify. The introduction of new features, such as app-controlled brewing, customisable pressure settings, and precision grinding, could become standard.
The question is whether these brands will keep pace with the evolving tastes of the modern coffee enthusiast.
Additionally, Breville’s rise could accelerate consolidation in the coffee machine market. As demand for premium appliances grows, larger brands may look to acquire smaller, innovative companies, similar to Breville’s acquisition of ChefSteps, or even invest in heavy-weights for wider distribution – like the LELIT and Baratza acquisitions.
Breville’s record sales are a bellwether for a broader transformation in the coffee industry. As consumers shift toward making their favourite beverages at home, both the coffee machine sector and the café industry will have to rethink their strategies.
Whether through technological innovation or market consolidation, coffee shops and the coffee machine and home equipment market will continue to evolve.
Coffee Intelligence
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