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Coffee is a popular brewed beverage made from roasted coffee beans, which are the seeds of the Coffea plant. The drink is enjoyed worldwide for its stimulating effects due to the presence of caffeine.
China coffee market is growing quickly, as more and more local and foreign coffee shops open up shop in the country’s largest cities. Chinese consumers are becoming more and more interested in specialty coffee.
People are growing pickier about the source, calibre, and preparation techniques of their coffee. Coffee shops are becoming popular places for business meetings and socialising among young urban professionals who are incorporating coffee into their daily lives.
The China coffee market accounted for $XX Billion in 2023 and is anticipated to reach $XX Billion by 2030, registering a CAGR of XX% from 2024 to 2030.
As one of the most popular drinks in the world, coffee is still very popular. Due to the robust expansion of international and domestic coffee chains like Starbucks and Luchin Coffee, which have made coffee more widely available and recognisable, China’s demand for coffee is expected to grow.
Coffee’s popularity has also been aided by the idea that, when ingested in moderation, it is a health-conscious beverage. Furthermore, consumers can buy premium coffee more easily thanks to the expansion of e-commerce platforms.
Although China still drinks tea traditionally, more people are becoming interested in coffee, particularly in urban areas and among working professionals.To encourage the country’s coffee-drinking culture and the international coffee trade, the Chinese government, for example, sponsored the I-Coffee Exposition in Haikou.
The production, marketing, and consumption of coffee are the main topics of the I-Coffee Exposition. The two southern provinces of Yunnan and Hainan produce the majority of China’s commercial coffee, with the province of Fujian producing a lesser quantity.
As consumers’ preferences for coffee over other beverages grow, producers of instant coffee have introduced a number of flavoured products to appeal to a wider range of consumers.
There may be differences in the coffee preferences of different age groups. Traditional options may be preferred by older demographics, but trendy and specialty coffee may be more appealing to young professionals and students.
A premium coffee’s affordability is dependent on one’s income. Spending money on specialty and premium coffee may be more common among those with higher incomes.
To know about Canada Coffee Market, Read our report
A unique alcoholic latte that caught the interest of both coffee and liquor enthusiasts was launched by Luckin Coffee and Kweichow Moutai, two of the most well-known beverage companies in China.
The two businesses’ strategic partnership began with the goal of giving customers better experiences and higher-quality goods and services. For many Chinese youth, this will be their first taste of alcohol-infused latte.
The Millennial generation, who have been influenced by Western trends, is largely responsible for the current coffee craze. Moutai Coffee presents itself as an accessible, lower-alcohol substitute that still has the prestige of the original Moutai liquor.
In order to complete its scaled vertical integration “from bean-to-cup” within a single market, Starbucks announced the opening of its China Coffee Innovation Park (CIP), a first for the business worldwide
With the help of the Coffee Innovation Park, Starbucks has demonstrated its vision in leveraging digitalization to improve the supply chain and further its sustainability goals, strengthening its competitive edge as it expands internationally.
The IDC, the hub of Starbucks’ distribution network in China, will supply thousands of Starbucks locations directly with freshly roasted coffee. The IDC is Starbucks’ most highly automated distribution centre worldwide, using cutting-edge automation technologies to handle over 90% of volume.
Rise of drip coffee bags: With drip coffee bags, brewing is simple because hot water can be poured directly over the pouch to make coffee. Drip coffee pouches have gained popularity as a time-saving option because of their high quality and ease of use. Black coffee is consumed by office workers and young mothers in particular because of its purported health benefits.
Growth of on demand coffee app : With its app-based ordering system, Luckin Coffee is a company that has swept through China coffee market. In less than two years, the company established over 4,000 locations nationwide. A combination of the company’s delivery and pickup model and discounting strategy has led to this growth. The brand Luckin Coffee effectively used technology to give customers a simple and convenient purchasing experience, even though it has since become embroiled in a scandal.
The popularity of ready to drink : The demand for prepackaged drinks among Chinese consumers has increased recently. Nestlé, the owner of the well-known coffee brand Nescafé, also wants to draw in young Chinese consumers with its assortment of creatively flavoured RTD coffee.
Luckin coffee is a new leading retail coffee company. 10,000 stores and counting, covering 240+ cities across China. Their coffee beans are strictly selected from top coffee producing regions around the world, such as Ethiopia, Brazil, Colombia and Guatemala.Their coffee is selected from more than 180 blending formulas that highly matches the taste of customers.
Starbucks entered the Chinese mainland market by opening its 1st store in the China World Trade Building, Beijing. Starbucks currently operates more than 6,500+ stores in over 250 cities in the Chinese mainland, employing more than 60,000 partners.
Gloria Jean’s Coffee outlets in China and its parent, China-based GouBuLi Group, has a 150 year old heritage with an annual revenue of RMB1 billion (A$197 million). The GouBuLi Group operates more than 30 high end restaurants across China and is also involved in the food processing, logistics and training industries.
