China Coffee Market Size
| Study Period | 2018 - 2028 |
| Base Year For Estimation | 2022 |
| Forecast Data Period | 2023 - 2028 |
| Historical Data Period | 2018 - 2021 |
| CAGR | 10.42 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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China Coffee Market Analysis
The Chinese coffee market is projected to witness a CAGR of 10.42% during the forecast period 2022-2027.
The overall Chinese coffee market has been the least affected by the COVID-19 pandemic. As per the analysis, in 2020, an average of one new coffee shop opened every day in China's Chengdu City. This pushed the total number of coffee shops in the city to over 4,000, just after Shanghai and Beijing. Chengdu is the third-largest coffee market in China. Moreover, with strict lockdown measures being imposed in the country, consumers in China have been resorting to at-home coffee consumption, thus, increasing the sales of instant coffee in the country during the COVID-19 pandemic.
While tea remains the traditional drink in China, the demand for coffee continues to grow, especially in urban areas and among younger professionals. To promote the international coffee trade and coffee drinking culture in China, the Chinese government supported the I-coffee Exposition in Haikou. The I-coffee Exposition is focused on coffee production, trade, and consumption.
According to data from the China Coffee Association Beijing (CCAB), coffee consumption is increasing at an annual rate of 15%. The current leaders in the market, like Starbucks and Nestle, have played a significant role in the growth of the coffee culture in China.
China Coffee Industry Segmentation
Coffee is a brewed drink prepared from roasted coffee beans derived from the seeds of berries of certain coffee species. Roasted beans are ground and then brewed with near-boiling water to produce the beverage known as coffee. The market studied is segmented by product type and distribution channel. By product type, the coffee market is segmented into whole-bean, ground coffee, instant coffee, and coffee pods and capsules. By distribution channel, the market studied is segmented into on-trade and off-trade. The off-trade channel is sub-segmented into supermarkets/hypermarkets, convenience stores, specialty stores, online retail stores, and other distribution channels. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).
| By Product Type | |
| Whole-bean | |
| Ground Coffee | |
| Instant Coffee | |
| Coffee Pods and Capsules |
| By Distribution Channel | |||||||
| On-trade | |||||||
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China Coffee Market Trends
This section covers the major market trends shaping the China Coffee Market according to our research experts:
Increasing Coffee Demand in China
China’s commercial coffee production is limited mainly to the two southern provinces of Yunnan and Hainan, while a smaller amount is produced in the Fujian province. Yunnan produces more than 60% of China’s coffee. Recently, Yunnan’s local government established the Tea and Coffee Industry Bureau, whose mission is to promote Yunnan’s coffee in the domestic and international markets. China lags behind other nations in the production of coffee and is dependent on imports. According to the US Department of Agriculture (USDA), coffee production in China in 2020 was 1800 thousand 60 kg bags in 2020, whereas China imported 3804 thousand 60 kg bags in 2020. Thus, the government and manufacturers need to invest more in R&D activities and come up with better measures to increase the production of coffee.
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Increasing Consumption of Instant Coffee in China
The instant coffee segment held a significant market share owing to its convenience. Moreover, the rising household expenditure, changing lifestyles, and acceptance of western culture trends by middle-class consumers have contributed to the increased demand for instant coffee across the country. In line with the growing preferences for coffee over other beverages among consumers, instant coffee manufacturers have launched several flavored products to attract a wider audience. Online retailing has been a minor distribution channel for instant coffee in China for the past few years. It is likely to gain prominence in the market during the forecast period owing to the convenience it provides to consumers. Consumers find it easy to choose their preferred brands from the wide variety of product choices available.
China Coffee Industry Overview
The Chinese coffee market is highly competitive, with a strong presence of local and global players operating across the country. Thus, in order to sustain their positions in the market, the active players are bringing innovation in packaging and product offerings to cater to consumers’ increasing demand for coffee. Key players are now focusing on social media platforms and online distribution channels for online marketing and branding of their products to attract more customers. Owing to a significant rise in the consumption of coffee, global and local players are investing in expanding their production facilities across the country. The key players in the market are Starbucks Coffee Company, Nestle SA, and Luigi Lavazza SPA.
China Coffee Market Leaders
Starbucks Coffee Company
Nestle SA
Luigi Lavazza SPA
Gloria Jeans
JAB Holding Company
*Disclaimer: Major Players sorted in no particular order
China Coffee Market News
In May 2020, Nestle's Sense Cafe released three new coffee products with the unique Yunnan flavor and at the same time, the brand’s online concept store ''Sense Cafe Flagship Store'' was officially landed on the TMall platform.
In April 2020, Lavazza Group and Yum China Holdings announced that they entered into a joint venture to explore the Lavazza coffee shop concept in China. The project was inaugurated with the opening of a new Lavazza flagship store in Shanghai.
In September 2019, Neste SA opened a new office registered as a fully-owned subsidiary of Neste, located at Jing’an Kerry Centre in Shanghai.
China Coffee Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.1 Whole-bean
5.1.2 Ground Coffee
5.1.3 Instant Coffee
5.1.4 Coffee Pods and Capsules
5.2 By Distribution Channel
5.2.1 On-trade
5.2.2 Off-trade
5.2.2.1 Supermarkets/Hypermarkets
5.2.2.2 Specialty Stores
5.2.2.3 Convenience Stores
5.2.2.4 Online Retail Stores
5.2.2.5 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 Nestle SA
6.4.2 Starbucks Corporation
6.4.3 Luckin Coffee
6.4.4 Hainan LISUN Investment Co.
6.4.5 Dehong Hogood Coffee Co. Ltd
6.4.6 Gloria Jean's
6.4.7 The Kraft Heinz Company
6.4.8 The Coca-Cola Company
6.4.9 JAB Holding Company
6.4.10 Luigi Lavazza SpA
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
China Coffee Market Research FAQs
What is the current China Coffee Market size?
The China Coffee Market is projected to register a CAGR of 10.42% during the forecast period (2023-2028).
Who are the key players in China Coffee Market?
Starbucks Coffee Company, Nestle SA, Luigi Lavazza SPA, Gloria Jeans and JAB Holding Company are the major companies operating in the China Coffee Market.
China Coffee Industry Report
Statistics for the 2023 China Coffee market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Coffee analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
China Coffee Market Report Snapshots
