Breville Eyes China’s Coffee Market as U.S. Tariffs Pressure Sales
Dubai, 21 August 2025 (Qahwa World) – Breville is looking to China and the Middle East as promising new growth markets for its coffee appliances, aiming to balance the impact of U.S. tariffs on its business. Chief executive Jim Clayton said rising demand for premium coffee machines in these regions provides long-term opportunity, even as higher import duties in the United States pose near-term challenges.
The company, which generates about 40 percent of its revenue from the U.S., has shifted part of its production from China to facilities in Indonesia and Mexico. Clayton confirmed that this diversification strategy will continue through the year to reduce exposure to higher costs.
For the year ending June 30, Breville posted revenue of $1.7 billion, an increase of nearly 11 percent, while operating profit rose just over 10 percent to $204.5 million. Despite the strong performance, investor concerns about tariffs weighed on the share price. Clayton acknowledged that higher input costs remain an issue for the U.S. market but said the company would manage these pressures through supplier negotiations, selective price increases, and new product launches.
Recent highlights include the launch of the Oracle Dual Boiler coffee machine in Australia, with a new grinder and a compact smart oven scheduled for release this month. Coffee appliances remain the company’s leading category, helping Breville deliver double-digit growth across all three of its regional markets in 2025. The business has increased revenue and profit every year since 2015, even during challenging conditions.
Analyst opinions are mixed. Some warn that U.S. tariffs could affect earnings through FY27, raising questions about consensus forecasts of flat growth this year and a return to double-digit gains next year. Others view the current slowdown as temporary, pointing to Breville’s consistent record of expansion and opportunities in international markets. UBS projects that the $5 billion company could more than double sales over the next decade, driven by coffee market growth globally and particularly in China.
Founded over 90 years ago, Breville has grown into a global brand with a presence in more than 70 countries. Known under the Breville and Sage names, the company has built a reputation for innovation in small appliances and premium coffee equipment. Its teams of engineers, designers, and food technologists have helped place Breville at the forefront of its category. The company also emphasizes sustainability and ethical practices across its operations, with a focus on reducing environmental impact and contributing positively to society.
Clayton said that early results in China and the Middle East are encouraging, though still in the early stages, and that both regions represent significant long-term potential. To close out the financial year, Breville declared a final dividend of 19 cents per share, bringing the full-year payout to 37 cents, payable on October 2.
