The Coffee Industry in China
China is both a major exporter and a major importer of roasted coffee and green coffee. The quantities produced and consumed are not that high in a global context, for example, China produced around 40,000 tons of green coffee per year (0.5% of world production). And its annual consumption is about 30,000 tons (0.025 kg per capita), a small amount that is due, in particular, thanks to the expansion of the urban middle class in China.
The sales of coffee detail have been very slow in terms of volume and current values in 2015. This was due to the saturation of instant coffee, which represents nearly 99% of the total sales in retail volume in China, in general in the first-tier cities. Instant coffee has grown in the volume of retail sales of nearly 3% in 2015, which is much slower than the 10% gain recorded in 2011.
The Coffee Sector
Nestle (China) Ltd continued its domination in the cafe in China in 2015, with a value share of 72%, down slightly from 73% in 2014 due to fierce competition from new players. However, the company noted the positive growth in sales value in 2015 as it benefited from a strong presence in instant coffee Nescafe and robust growth in fresh coffee beans through its Nespresso brand. The big group has provided instant coffee made from Yunnan Coffee and also provides technical assistance to farmers, which has ensured a steady income to local farmers.
Between 70% to 80% of the coffee, market is concentrated in the Southern cities of China i.e. Shanghai, Guangzhou, Shenzhen, Dongguan, Zhuhai etc
Coffee should display both a constant volume and value growth over the forecast period, with this underpinned by good demand for coffee lovers. Fresh coffee should know better performance during the forecast period, with a 17% retail volume CAGR and a CAGR value of 22% to 2015.
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 average American consumes nearly 441 cups per year while the average Chinese consumes only eleven cups of coffee per year.
However, China’s coffee market has experienced high rating of 10-15 percent per year compared to the world average of only 2 percent during the last decade. In 2006, coffee consumption in China was about 45,000 tons, and Daxue Consulting forecasts that the number could reach over 300,000 tons per year by 2020.
For many Chinese consumers, Coffee is a Western trend that suits to the Western lifestyles. Chinese coffee consumption is highly concentrated in major cities such as Shanghai, Beijing, and Guangzhou. More coffee is integrated into the habits and minds of the young, rich, urban consumers. These consumers are more open to Western lifestyles.
Another large group of Chinese consumers flows on the coffee consumption. with an influx of Chinese student living abroad. Many returnees who lived in the West for more than two years in a western country and who have become accustomed to the culture of coffee are consuming coffee. Upon their return to China, they keep this habit by visiting cafes and drinking coffee for breakfast. The outlook for the coffee market in China is indeed bright. The younger generation has embraced coffee not only as a beverage but as a reflection of one’s social status and is also becoming more cup quality conscious.
You enjoy reading this article and would like to know more about China’s market, contact us at email@example.com
Follow us on our Social Media, see our latest post on Facebook: