Flavourtech sees demand rise for lower-cost coffee concentrates

Households squeezed by higher living costs are showing up in Flavourtech’s enquiry books, and the signal is clear: more buyers want full-flavoured liquid coffee concentrates that deliver a cheaper cup without pushing coffee out of the routine.

The Australian technology manufacturer says the strongest interest is coming when affordability is matched with taste. In other words, the winning pitch is not the absolute lowest-cost beverage, but a format that still tastes like freshly brewed coffee while reducing the time, labour and equipment needed to make it. That makes the category attractive for both home and workplace setups, where operators are under pressure to keep drinks accessible and simplify preparation.

Flavourtech’s own development history fits that shift. As demand grew for new processing solutions for instant tea and coffee beverages, the company developed its Integrated Extraction System to produce premium liquid extracts from tea and coffee. It is now also used for RTD tea and coffee production, which puts it squarely in the same convenience-and-quality lane that is drawing attention to concentrates.

The wider market backdrop helps explain why the format is gaining ground. The International Coffee Organization says its Composite Indicator Price is used by public, private and academic sectors to assess costs and plan budgets, and the ICO said the I-CIP reached the highest monthly average since April 1977 in January 2025. At the same time, USDA Foreign Agricultural Service data point to a consumer shift in key markets: India’s domestic coffee consumption in MY 2025/26 is forecast at 1.4 million 60-kilogram bags, with stronger soluble coffee sales driving growth and household use taking a much larger share. In Brazil, inflation and high retail prices have continued to limit consumption growth.

For brands and foodservice operators, that backdrop makes liquid concentrates especially compelling. Market research has valued the global liquid coffee concentrates market at about US$1.5 billion in 2024 and forecasts strong growth through 2031, with cost efficiency, lower equipment needs and reduced wastage among the main attractions. Flavourtech’s rise in enquiries suggests the same pressure is flowing through the supply chain: as consumers trade down and make more coffee at home, the formats that survive are the ones that preserve coffee character while stretching every dollar.