In recent years, China has seen an increasing demand for coffee, mostly among white-collar workers aged 20 to 40 years old who have developed an appetite for it, according to Deloitte’s report. Although the freshly brewed coffee industry is booming in China, instant coffee is becoming increasingly unpopular in some regions of China.
Hangzhou’s coffee culture shift: a decline in instant coffee sales
According to a journalist from City Link (橙柿互动), a lifestyle media outlet for Hangzhou citizens, the #sales of more than 30 instant coffee brands in Hangzhou supermarkets have declined# (杭州有超市30多个速溶咖啡品牌销量下跌), including well-known brands such as Nestle (雀巢) and Maxwell (麦斯威尔), which begs the question: #Do Hangzhou people not drink instant coffee anymore?# (杭州人不喝速溶咖啡了吗)?
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Affordable brews challenge the status quo in China’s coffee market
The average price of freshly brewed coffee has continued to drop since more players have entered China’s coffee industry. For instance, tea-based drinking brand Coco has announced selling freshly brewed Americano coffee at the price of only 3.9 RMB per cup and raw coconut latte (生椰拿铁) for only 8.9 RMB per cup. Bottled drink brands are also competing to increase their market share, advertising coffee-based bottled drinks, further squeezing China’s instant coffee market.
“Coffee shops are blooming everywhere, and most white-collar workers can afford the price. Why do you need 3-in-1 instant coffee? It doesn’t taste good and it’s not healthy.” A netizen from Zhejiang commented under the hashtag.
Freshly brewed coffee challenges instant coffee in China
- China’s coffee demand is rising among white-collar workers aged 20 to 40, leading to a boom in the freshly brewed coffee industry. However, instant coffee is losing popularity in some regions of China, including Hangzhou.
- Hangzhou has experienced a decline in instant coffee sales, with more than 30 brands witnessing decreased sales in supermarkets. This shift raises questions about Hangzhou’s changing coffee culture.
- The average price of freshly brewed coffee is dropping in China due to increased competition in the coffee industry. Affordable offerings like Coco’s Americano and raw coconut latte are challenging the status quo and squeezing the instant coffee market. Netizens express a preference for coffee shops over instant coffee, citing taste and health reasons.
