A new research says fewer Australians are drinking instant coffee and instead choose to flock to cafes for their daily caffeine fix.

The study also shows instant coffee sales have declined in the last five years since more Aussies prefer their coffee freshly brewed.

However, among instant coffee brands in Australia, Nescafe remains the most popular coffee mix.

The survey covered 12 months to March and research indicates 38 per cent of Australians between the ages of 14 or older have bought instant coffee in a 4-week period average. The figure has dropped from the 42 per cent in the same study in March 2009.

More than half of them or 21 per cent of Australians purchased Nescafe. Despite the brand's declining popularity, Nescafe maintains its market share of 21 per cent as rivals Moccona have 11 per cent market share followed by International Roast with 3 per cent.

Nescafe is the leading instant coffee brand across all states but other brand preferences may vary slightly in between states.

People in Queensland are 13 per cent more likely to buy Moccona while 7 per cent of Tasmanians prefer International Roast than those in other states.

Norman Morris, industry communications director at Roy Morgan Research says fresh coffee sales have remained stable.

Morris said the last five years saw a small decline in the number of Australians buying coffee in an average of four weeks. It is also during this time that more Australians visit cafes to drink brewed coffee. This has directly affected the sales of instant coffee. More Aussies have acquired a taste for fresh coffee and are steering clear of instant coffee.

For coffee brands to remain competitive in the changing market, coffee companies will need to understand the changing needs of their customers as well as their differences with rivals.

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