Analysis on the China coffee market

When the French built the Hanoi – to – China Railway in Vietnam in 1880s, they brought their favorite cafes to China. At this point, coffee has been developing in the Chinese market for more than a century. As streets and lanes have become a popular place of conversation and a new place for leisure, coffee has really become a part of people’s life in china today.

With the improvement of Chinese people’s living standards and the growing awareness of coffee culture, China coffee market is on the rise.  In 2015, the output of China coffee market was 132 thousand tons. It accounted for 1.44% of the total output of the same period. The total share of China coffee market increased from 0.31% in 2003 to 1.44% at present.

Under the background of consumption upgrading, the development of the subdivision of beer and instant noodles has declined. But coffee has ushered in the development of dividends. The annual growth rate of China coffee consumption is 15%-20%, while the global average coffee consumption in China growth is only 2%. By 2015, the output value of the China coffee market was about 1 billion 355 million yuan.

Data shows that in 2015,China coffee consumption is about 70 billion yuan. In the next 10 years, the China coffee market will enter a period of rapid growth. By 2020, coffee consumption in China coffee market will reach 300 billion yuan. The potential of China coffee market is just an uncultivated gold mine. The huge market has attracted more and more brand attention. China coffee market is showing the characteristics of rapid growth and great enthusiasm for the industry.

Although the average annual coffee consumption in China is less than 5 cups per year each person, but in Shanghai, Beijing, Guangzhou and other first tier cities in China, the consumption of coffee per capita is 20 cups per year. At the same time, the per capita consumption of coffee per year in North America and Europe is about 400 cups, and the per capita consumption of coffee in Japan is about 360 cups a year. In contrast, even though the coffee consumption in China per capita of China’s first tier cities and other countries is only single digital per year, China coffee consumption still has much potential for growth.

According to the data, China coffee consumption has exceeded 10 million in 2016. And the growth rate of China coffee market is also up to 16%, far beyond the world average. The coffee consumption in China, which has been cultivated, is gradually approaching the global trend. Among them, the new consumer group has become the main force.

More than 90% of the coffee in China is instant coffee. Because its price is cheap and convenient. Now coffee carries more people’s social needs. The coffee consumption in China and coffee shop is increasing. In the next two years China coffee market, the market share of instant coffee will increase. It means that coffee and coffee will gain faster growth.

According to European forecast, coffee consumption in China will reach 14 billion 900 million yuan in 2021, so China coffee consumption has a lot of potential for development. Because of the rapid growth of China coffee market, many international coffee brands are preparing to enter China market. In mid September 2016, Starbucks and Kangshifu cooperation, jointly launched the 4 China meet consumer tastes and preferences of bottled Frappuccino products, supermarkets, convenience stores and electricity supplier as a key channel; not long ago, Guangzhou launched Wednesday axe cat. Lazy exclusive drink coffee also set off a boom in the industry. Investment and consumer purchase data are amazing. Taobao launched for pre-sale period of three days, 5821 pieces of original Mocha was looted. It was also rated as the best drink of autumn sugar in 2017, and was favored by consumers.

According to the market status, coffee consumption in China has increased significantly. More and more businesses will enter the new blue sea of instant coffee. China coffee consumption will become a hot spot for coffee brands.

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