Sep. 17 – Coffee in China market is growing larger and larger, the coffee category is exciting in China overall. According to coffee in China statista market forecast, Revenue in the Coffee segment amounts to US$8214m in 2019. The market is expected to grow annually by 11.3% (CAGR 2019-2023). The China coffee market has massive potential, especially in instant coffee, capsule coffee and coffee stores.
China Coffee Market Facts and Figures
These numbers speak volumes over coffee market in China:
- China continues to be one of the largest growing markets for the coffee shop industry. 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.
- China expects to surpass the US as the cafe chain’s biggest market in a few years. Starbucks has 3,300 coffee shops in China, and plans to double the current count to over 6000 locations in local China in 5 years, adding 500 shops per year. That means every 15 hours there will be a new coffee shop opened somewhere in local China. Meanwhile, coffee shop sales reached some 30 billion RMB last year (and is expected to reach 1 trillion RMB in 2025), with a year-on-year growth of 15% to 20%, far exceeding the international market’s 2%.
- China accounted for nearly 50% of the 194 billion mobile APP downloads worldwide in 2018. Average Chinese mobile user installed 56 apps on their phones in the second quarter of 2019. In June 2018, around 33.5% of Chinese food delivery app, users were young people between 31 and 35 years old.
- Food drink delivery app users in China – Among others, Food delivery apps have an estimated 355 million users in China which means a quarter of all Chinese people are ordering foodstuff, meal kits from their phones. There are more than 1.8 million food delivery orders placed every day in Beijing alone.
- Coffee delivery app users in China –Coffee consumption has grown in China , 75% lays on the young middle class which most of them are coffee app users. Luckin Coffee, a Chinese start-up, uses an app for ordering coffee which can either be delivered or consumed in/collected from one its outlets. Starbucks mobile app has over 240,000 active users in Hong Kong. Close to 70% of its customers [place orders] to-go,”
While these numbers only reflect part of the image, they demonstrate the rise of the middle class and an overall better standard of living, particularly Coffee consumption has grown among young Chinese age group. China’s on the way shifting toward health and wellness, better living standard and the opportunities for growth. The flourishing of hundreds of new coffee stores in main cities, where the Western lifestyle gain attraction, to sit down sipping a cap of coffee seen as a fashion. Despite this trend, the market is fragmented with the increasing number of local coffee houses that offer a calm enjoyable “cozy atmosphere” and pleasantly “service” directed on Chinese tastes which increasing beverages consumption with milk and sugar. While local cafés are gaining traction, international brands in the instant coffee, capsule coffee and coffee stores category are still leading the industry. Brand-savvy Chinese consumers still value the stringent food and drinks safety standards, an increasing attention to professionalism, customized beverages and services, a ceremonial style of service. Moreover, improved quality and innovation that foreign brands promise, and they are willing to pay premium prices for them.
Main Driving Force of China Coffee Boom
Many of these changes in China coffee market are driven by the explosive growth in China’s emerging middle class, which is on track to expand from the current 430 million to 780 million by 2025. The market’s largest segment is the segment Instant Coffee with a market volume of US$7,468m in 2019. By 2023 75% of spending in the Coffee segment will be attributable to out of home consumption (e.g. in bars and restaurants). Among others, the younger generation consumer is considered the driving force of consumption. Compelled by their startling levels of wealth, open-mind to western culture and digital naturalness, they are expected to account for over a quarter of total consumption growth in China by 2030. Chinese middle class places a healthy lifestyle as a high priority and sees this as the definition of a good life. Over 70% exercise regularly, purchase organic food and beverages, and strive to achieve a higher quality of life. In addition, China coffee boom driven by an increase in income level – equal work with equal pay, and changing notions, roles and values, China’s female consumers hold on an undeniable power of spending. The increasing coffee consumption by females are noticeable increasing, especially in cafe houses, restaurants and bars (young people of the middle class represent the main customer at 75%, and among them the female portion represents the biggest share of 70%), according to a related report. That’s a magnificent change, and regarding women’s role, there is a popular saying in China: “women holds up a half of the sky”. But linking to coffee consumption in China, this number illustrates Chinese women holds up more than a half of the sky in China.
China Coffee Market Opportunities
While China’s reliance on imports and foreign expertise remains strong, do not forget, China is a traditional tea drinking country, till now, China formed a growing coffee trend driving by young people, and stimulate China coffee market continues flourishing. According to a related China coffee market report, the growth rate of coffee consumption in China is about 20% per year, more than 2% above the global growth rate. China coffee market insider points out; the country’s coffee market has massive potential, especially in instant coffee, capsule coffee and coffee stores and will offer consumers more options in coffee consumption. Statista coffee China market forecast that China revenue in the Coffee segment amounts to US$8,214m in 2019, the market is expected to grow annually by 11.3% (CAGR 2019-2023); The China market’s largest segment is the segment Instant Coffee with a market volume of US$7,468m in 2019. To further discover China market opportunities of coffee products, actively to connect with Chinese importers for coffee (instant coffee, capsule coffee , Coffee beans, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion), particularly for coffee producers and coffee export businesses, there is a List of Chinese Importers/Distributors for Coffee Products available, please contact with DCCC or email to: email@example.com