According to Datamonitor’s ‘Hot drinks in Australia to 2013′, Australian’s taste for coffee and tea will not be sated anytime soon.

The report expects the category to grow from $1,350 million (2008’s value) to $1,473 million by 2013. Datamonitor’s report suggests manufacturers market differentiations such as organic and antioxidants.

The study found that the average Australian drinks one of seven coffees outside the home. It also indicates consumers are attempting to replicate cafe quality coffee at home with strong demand for high quality roasts driving retail coffee sales to $752 million.

This positions Australia as second in per capita consumption of coffee in Asian economies as of 2008. Despite this swelling demand, instant products account for more than 80% of Australian sales. Datamonitor is forecasting $46 million growth in the at-home market over three years, to $798 million by 2013.

“In contrast to the western economies, Australians prefer their coffee with milk. So, whether it is the Australian-invented flat white or other favoured coffee variants such as cappuccinos or caffe latte, milk variants are in huge demand. However, cafés are not a quick pit-stop for caffeine intake. Rather, Australians prefer to sit back and spend hours drinking coffee in a cafés making it a place for leisure and business gathering,” said Niraj Lalka, senior consumer analyst with Datamonitor.

The report points to ”the unsuccessful attempt by the US coffee chain, Starbucks, to replicate the US model in Australia is indicative of very specific expectations of Australian consumers, which are difficult to meet by regular western practices.”