The Chinese economy maintains a high speed growth which has been stimulated by the consecutive increases of industrial output, imports & exports, consumer consumption and capital investment for over two decades. Between 2017 and 2018 their revenue almost doubled, and it’s estimated that a new Starbucks store opens every. Webster Griffin, With estimates of market growth ranging between 5-9% per year, The China market’s largest segment is the segment Instant Coffee with a market volume of US$7,468m in 2019. Currently, coffee consumption is concentrated in. "We have very strict standards on every step of production, from raw material purchasing to baking and roasting," he added. Between 70% to 80% of the coffee, market is concentrated in the Southern cities of China i.e. This could possibly restrict where a roaster or coffee shop sources their coffee, and how it’s processed. Recent years have seen a surge in coffee consumption that has grown to double digits. Besides a few Starbucks outlets which were considered quite expensive at the time, there were two Western food restaurants… that served basic espresso drinks… Most Chinese coffee consumers, however, were still drinking Nestle or Maxwell instant coffees on campuses, at their offices, and even at home”. Felipe believes that the best way for roasters and producers to access the Chinese market is to team up with people in the industry. Other newcomers are ambitiously expanding. It says it's ready to join the battle for the retail market. A second challenge to market entry will be overcoming China’s cultural and language barriers. China’s coffee market has historically been dominated by instant coffee, with in-store coffee sales making up only a sliver of sales across the country. “Partner up with a company, agent, representative, or local professional that has presence and experience in [the] Chinese coffee market. Perfect Daily Grind » Entering China’s Emerging Coffee Market. High demand for coffee in China is one of the factors contributing to the growth of the market studied in the region. Felipe predicts that “specialty coffee roasting and brewing businesses are going to increase in megacities… where many young adults come to study and work… After some time, these young adults will go back to their hometowns to start families, start their own business[es], or to take care of their ageing parents, and they will bring the specialty coffee culture with them”. In the nine months following its inception, it opened 525 shops. China has produced and consumed tea for centuries. A domestic coffee supply chain giant called Milan Gold has also decided to join the battle for the retail market. The country produced an estimated, tons of tea in 2018, and currently accounts for almost, of the world’s total tea consumption. Other specialty coffee chains in China include. For a country that has traditionally been linked to tea consumption, this is an extraordinary result. It is essential to talk about the quality and competition, as the 1.4 Billion country unsurprisingly has fierce competition. Between 2017 and 2018 their revenue almost doubled, and it’s estimated that a new Starbucks store opens every 15 hours in the country. Coffee as a western beverage was introduced to China in the mid-80s. Interested in more PRF coverage? With over 3300 Starbucks stores in existence and Chinese chain Luckin planning on opening 10 000 stores by 2021, they have a strong grip over the market. This new study examines China… On January 3 of 2019, the CEO of Luckin Coffee, Qian Zhiya, spoke at a briefing about grand ambitions to open an additional 2,500 outlets this year, bringing the company’s total number of outlets to 4,500 by the end of 2019.This means Luckin is on track to surpass Starbucks not only in number of stores, but also in the number of cups of coffee sold. The Coffee Industry in China: Changing the Habits China is not ready yet to be the largest in the world coffee market, before the United States it is the largest coffee market in the world in terms of total consumption and value reaching nearly $ 30 billion of US dollars annually. The event’s success, combined with the increasing quality of Chinese cultivated beans, led to another one being planned this year, with origin experiences at farms added to the offering. Industry insiders point out that coffee's growing popularity may stem from when international hotels and restaurants made their foray into China and gradually brought the beverage to more consumers. Being connected to the right business will help you market and advertise your business or product appropriately, and help you tailor its offerings to the habits of local coffee drinkers. "Coffee acts like a window and communicable language that bridges the gap between young consumers and merchants. The country's citizens currently drink only six cups per year. The Trend: Coffee consumption is rapidly growing in China, turning the traditionally tea-drinking country into the world’s most-promising market for coffee growers and international coffee chains. Felipe says “You cannot succeed here alone. the Yunnan region’s varietals to international roasters and importers, and educating local industry professionals with talks and seminars. According to coffee market analyses reported by www.chinabgao, the growth rate of coffee consumption in China is around 20% annually, more than 2% above the global growth rate. Farningham Road, Pairing up with an established business is important, as Chinese consumers tend to prefer brands that are tried and tested, or recommended by family. As they’re increasingly willing to pay. China might be the fourth-largest country in the world and have the largest population on earth, but it has one of the world’s lowest coffee consumption rates, with citizens consuming an average of just one cup a year. Coffee consumption in China. In 2018, the first, International Specialty Coffee Expo and Forum. This increase in preference could be attributed to the rise of second wave coffee chains, such as Starbucks and Luckin Coffee. More coffee means more coffee drinkers. Zhu also introduced that the company plans to promote its featured product drip coffee and occupy this very specific market segment in the early phase of its retail-oriented shift. This facility promises to use environmentally friendly technology for air cleaning and smoke elimination, and will exclusively supply Luckin branches. Written by Tasmin Grant. in Honduras. Exploring Five Popular Indonesian Coffee Varieties. In the next 10 years, the China coffee market will enter a period of rapid growth. That's hundreds below what citizens in … I think now it's time for us to interact with them in a more straightforward way, to share the delicate taste with a broader population," Zhu added. Then take a look at Deconstructing Russia’s Coffee Market, Guatemalan coffee ready to be sampled at Ocean Grounds Coffee in Shanghai. Later this year, Luckin plans on opening a, in Xiamen, with an annual production capacity of 30 000 tonnes. Additionally, a, will be students returning from studying in countries such as the UK, Canada, and Australia, who want to maintain the coffee, By being willing to pay more, this age group is helping specialty coffee emerge as an industry. WeChat differs significantly from other social media platforms as it can connect with. Copyright © 2020 CGTN. While the number hovers at around just 10% and 15% of the current consumption in the European Union and the US respectively, the potential for the Chinese market is huge. In the next decade, both production and demand will continue to grow. China is a huge market with over a billion people, and there's room for more than one kind of coffee chain. Enjoyed this? China has produced and consumed tea for centuries. Other specialty coffee chains in China include Fisher Coffee Company, Arabica Roasters, and Ocean Grounds Coffee. Since last year, Canada’s Tim Hortons has opened about 60 stores in China while Italy’s Lavazza and Sweden’s Wayne’s Coffee have also made forays into the market. For insight into this market, I spoke with Felipe Cabrera, Director of Wholesale Coffee at, , and Natalia Li, Green Bean Buyer for Ingenuity Coffee. Lee este artículo en español Ingresar al Mercado Del Café Emergente de China. Shanghai, Guangzhou, Shenzhen, Dongguan, Zhuhai etc. While understanding the current market is important, so is predicting future trends. Statista Dossier on the coffee market in China This dossier presents information regarding the coffee market in China. International specialty industry giants have already started to take notice of Chinese coffee, with UK roasters, officially introducing aerobically fermented Yunnan beans to their menu. It only penetrated the mainstream market in 1999 when the. According to the analysis of the coffee market reported by Chinabgao, the growth rate of coffee consumption in China is about 20% per year, more than 2% above the global growth rate. They can help you to navigate among the particularities of [the] Chinese market and enter your product here with the right price, volumes and selling approach”. , coffee was treated like an expensive gift, rather than something to be enjoyed. Data shows that in 2015, China coffee consumption is about 70 billion yuan. , when imports started to decrease. Later this year, Luckin plans on opening a coffee roasting plant in Xiamen, with an annual production capacity of 30 000 tonnes. This group tends to have a higher disposable income than previous generations, so they can afford these luxuries. Restaurants China Co Ltd, to further explore the coffee market in China. Their Ou Yang is a creamy coffee with tasting notes of strawberry jam and lychee. Actually, we have opened our retail stores both online and offline for many years, while we just did not prioritize the retail business as our focus during that time," said Zhu. Coffee, from day one, has been a marketed commodity in China. Feature photo caption: Shanghai City at night. It only penetrated the mainstream market in 1999 when the first Starbucks opened in Beijing’s World Trade Center. Coffee: A Status Symbol Number of cafés in China 2018, by brand. In. Felipe says “You cannot succeed here alone. It’s named after the farmer who uses natural double fermentation to create it. Canadian coffee brand Tim Hortons recently opened its 100th Chinese store after two years since arriving in China, and McDonald's McCafe has announced plans to invest 2.5 billion yuan in its coffee market in China over the next three years. However, it has been postponed due to the Coronavirus outbreak. It’s a joint venture with the Louis Dreyfus Company, a merchant and processor of agricultural goods, and one of the world’s largest green bean merchandisers. And now, the professional coffee provider aims at winning more retail consumers' hearts with its products. , allows many coffee roasters to sell their specialty coffee directly to the public, using distinct online branding and an online storefront. The culture, language and bureaucratic barriers make it quite difficult to step into this market by yourself”. The domestic-grown coffee supply chain giant Milan Gold Coffee provides whole-package services for many companies and luxury hotels. By being willing to pay more, this age group is helping specialty coffee emerge as an industry. Felipe predicts that “specialty coffee roasting and brewing businesses are going to increase in megacities… where many young adults come to study and work… After some time, these young adults will go back to their hometowns to start families, start their own business[es], or to take care of their ageing parents, and they will bring the specialty coffee culture with them”. The Coffee Shops market worldwide is projected to grow by US$58.7 Billion, driven by a compounded growth of 4.1%. , or recommended by family. "When international hotels and restaurants entered China decades ago, they bring coffees, and then the penetration spreads to more households," said Dieter Grun, an experienced expert in the hotel industry and a former MHF China partner. Number of Starbucks stores in China 2005-2019. Beijing ICP prepared NO.16065310-3, Huge potential in China's coffee market attracts more coffee chains. For example, Beijing and Shanghai consumers tend to. East Sussex Credit: , Chinese coffee consumption increased by 1032%, thanks to the growing influence of Chinese millennials. The instant coffee segment dominates the Chinese coffee market. Currently, individuals born between 1981 and 1996 make up over a quarter of China’s population, account for over half of all luxury goods purchased, and hold over two-thirds of all passports. The millennial penchant for travel means that some will be exposed to Western ideals while overseas, with those in, likely to come into contact with Western lifestyles and media in their day to day lives. And there's lots of optimism ahead as the popularity of coffee grows among more and more consumers. For insight into this market, I spoke with Felipe Cabrera, Director of Wholesale Coffee at Ocean Grounds Coffee, and Natalia Li, Green Bean Buyer for Ingenuity Coffee. It's also important to discern what kind of coffee Chinese consumers are imbibing, as well as the kinds of customers that make up the drink's market base. A Chinese village on a hillside. It is easy to see the China coffee market has massive potential. The coffee consumption in China has increased by an average annual rate of 20 percent over the past five years. might be the fourth-largest country in the world and have the largest population on earth, but it has one of the world’s lowest coffee consumption rates As a professional manufacturer of a coffee supply chain with a history of over 25 years, our very special edge is our high-quality products," said Zhu Xuesong, the founder of Milan Gold. However, it has been postponed due to the Coronavirus outbreak. China is the current market leader in the purchasing of professional coffee machines in Asia. In this rapidly expanding market, it is important for coffee producers and retailers in China to understand the preferences of emerging Chinese coffee consumers. Coffee Market in China China is going to be the largest coffee market in the world by 2025 and almost reach 300 billion yuan (about $42.3 billion) by 2020. The culture, language and bureaucratic barriers make it quite difficult to step into this market by yourself”. The market is expected to grow annually by 11.6% (CAGR 2020-2025). These barriers can include the diversity of taste preferences present. which uses very different methods,” Felipe explains. Customers can only place orders online before picking them up, using an app linked with WeChat (China’s largest messaging service) to do so. We believe there's more potential to unleash in more diversified sectors.". During January 2020, Lavazza opened its first flagship store in Asia in Shanghai, along with its official WeChat account called, Lavazza Official Coffee Shop. In 2015, KFC also launched their own affordable coffee offering, which is available in many of its 4500 outlets across the country. Additionally, a significant portion will be students returning from studying in countries such as the UK, Canada, and Australia, who want to maintain the coffee drinking habits they’ve established abroad. The American company operates 3,300 outlets in 141 mainland cities, and this number is growing at a rate of one new shop every 15 hours. Brooklands Park, Experts believe that the Chinese coffee consumption market could reach thousands of … In 2018, the first International Specialty Coffee Expo and Forum took place; showcasing the Yunnan region’s varietals to international roasters and importers, and educating local industry professionals with talks and seminars. As long as cultural traditions and preferences are taken into account, including China’s ongoing use of technology, local tastes, and the importance of connecting with trusted businesses, then roasters and producers should be able to thrive in this industry. McDonald's to invest heavily in Chinese coffee market. What Is Blind Cupping & How Can You Do It? With over, Starbucks stores in existence and Chinese chain Luckin planning on opening, stores by 2021, they have a strong grip over the market. This award-winning roastery supplies coffee shops all over London, and is part of Cup of Excellence and the Speciality Coffee Association of Europe, amongst other organisations. (source : International Coffee Organization). Then Read Exploring Millennial Trends in Specialty Coffee. Luckin seems to understand this as its business model is much different from Starbucks. , meaning that rural areas could be the next market. Originally from Colombia, Felipe spent several years living in China before taking on his current role at Ocean Grounds Coffee. As a coffee market, China exerts a magnetic pull for Western brands keen to emulate the success of Starbucks Corp which has over 4,400 stores in China and is still expanding. We discussed China’s recent market developments, why consumption rates are increasing, and what roasters and producers can expect from it all. "I think we're ready for the business-to-customer market. International specialty industry giants have already started to take notice of Chinese coffee, with UK roasters Square Mile officially introducing aerobically fermented Yunnan beans to their menu. 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