Although the battle between traditional coffee machines and the ubiquitous capsules is still holding a lot of heat, both sides are relieved that there are strong signs of life in the premium ends of both categories.
Jura Australia Espresso, head of sales George Liakatos, acknowledged that the automatic coffee machine industry had suffered with the introduction of less expensive coffee systems. 
“We saw a decrease in the average selling price of coffee machines as consumers shifted from the coffee experience to commodity,” he said.
However, Liakatos added that he has seen a “welcome” return to growth in the premium coffee machine segment.
“Our message of using “fresh beans” seems to be penetrating the market. Our focus is consistently emphasised in all our collateral, that is, the importance of using “fresh beans, freshly ground – not capsuled”. Consumers are again realising that a premium coffee machine is an investment in quality and longevity. We believe the market will continue in this direction, particularly with the continued support of our retail partners,” he said.
Meanwhile, Map Coffee senior brand manager, Beau Boundy said in 2014 the industry was facing 
challenges from the grocery channel taking control of the market.
“There was a consequent decline in the average selling price of capsule machines. However, these challenges are starting to dwindle as consumers are happy to trade up to a more premium offering.
“Grocery will continue to play its role in recruiting coffee capsule drinkers from other formats. The electrical channel will however remain a stronghold caterer for more serious quality driven coffee drinkers who require better looking, precision machine,” Boundy said.
Sunbeam Australia head of product marketing Tim Anderson says it is clear that the market is heading towards manual coffee machines. He said that, as consumers become more educated and seek a better quality coffee experience at home, they are leaving capsule machines and entering the world of manual machines.
“These consumers are also willing to spend big with solo traditional machines now representing 24% of value this MAT up from 19%. Single serve espresso machines above $1,000 have doubled their value share from 7-14% over the last MAT period.
Anderson identified the current growth in the manual machine market as a primary trend in 2015-16, while observing that there is growth potential to expand, as research indicates that many consumers believe they are too difficult to operate and subsequently choose the simple option of an automatic machine.
DeLonghi category marketing manager, Helen Finlayson agreed with Anderson that the healthy growth in both the fully automatic and manual pump markets is a positive sign that consumers continue to have a passion for all things coffee.
“With so many machine options available, determining the machine that best suits consumer needs is the real challenge. Therefore, having intimate knowledge of each category and the purchase criteria is
paramount if retailers want to secure customer satisfaction and brand advocacy,” she said.
Finlayson explained that the fully automatic coffee and manual pump machines, such as the ‘Fresh Bean’ segment will continue to experience growth in 2016, as consumers become more sophisticated and discerning. “They are researching their machine choices and bean selections more thoroughly. Whilst they are not looking to replace their weekend café experience, they are looking to replicate café quality coffee at home without compromise.”
Nespresso commercial manager, John Ciagla identified personalisation as a strong trend.
He said that as the popularity of coffee machines as a ‘must-have’ home appliance grows, consumers are looking for the ability to customise their appliances and coffee rituals to suit their unique lifestyle. 
He said that the Nespresso Club meets this desire by offering members free machine repairs, exclusive invites, promotions, personalized offers and Boutique Pick Up Service. Rooms in selected Boutiques.
“Our members are looking for ways to minimise the impact of their daily coffee habit on the environment and we expect this trend to further grow in 2016. In addition to our Boutique capsule collection points, we have introduced an additional 180 collection points for used capsules, located at florists nationally, where Club Members can recycle their used capsules,” Ciagla added.
Ilve marketing manager, Daniel Bertucci pinpointed the challenge of space in today’s modern kitchen, with customer’s often prioritising the core necessities such as an oven, cooktop/cooker and rangehood.
“Quality coffee machines are still considered a luxury item for many households as space is becoming a premium,” he said.
Bertucci added that the strong desire for coffee by consumers means that coffee machines have become a common fixture in the kitchen, with many consumers needing one to start their day.
“We have found that there are two types of coffee consumers, the ones who long for a caffeine fix, and then the connoisseurs who are more interested in taste and quality. Ilve and De Dietrich’s strength in this market is their simplicity in catering for the coffee connoisseur, with one machine per brand,” he added.
Breville business manager – toast and beverage, Athena Kalos, pointed to the market growth driven by manual 
espresso machines, following a 38% increase year-on-year to 25% value share. “Manual espresso machine ASPs have increased by 26% in the last 12 months, from $349 to $440.”
Kalos said that Breville continued to drive growth in the manual espresso category, and according to GfK, currently has 66% share (value), driven by Breville’s top three manual machines: the Oracle® BES980, the Dual Boiler™ with Smart Grinder™ Pro (BES920) and the Barista Express™ (BES870).
Looking to the future, V-Zug Australia director, Mark Tragear believes that the biggest challenge for the industry will be producing products that replicate the café experience at home.
“Products in this category will need to constantly innovate. For example, they may be designed in different sizes to fit varying cut-outs and bench space, with components that can create other beverage types such as soft drinks or flavoured coffees,” he said.