Demand for coffee in China as substantial cafes growth

Demand for ready-to-drink (RTD) coffee in China as substantial cafes growth Jul. 15 – The Chinese market represents a major opportunity for market diversification across agricultural commodities. Statistics show that in the Chinese coffee market, total coffee sales at stores in Shanghai hit 20 billion yuan ($3.2 billion) in 2013, double the rate of 2008. It is expected to double again by 2017. There is a considerable growth in Chinese consumption of coffee as substantial cafes growth.

Nestlé (China) Ltd still ranked top in instant coffee market in 2014 because of its attractive product portfolio, well-organized channel management, competitive promotional campaigns and well-received advertisements. These are just a fraction of the more than 4,000 coffee shops in Shanghai, whose population of 25 million consume 20 cups of coffee per capita each year on average.

The key is that the broadening of distribution to increase consumption opportunities that in the Chinese coffee market, with more foreign coffee brands, competition in coffee intensified. In China, most coffee shops offer fewer than 40 items. Most of Caffe Bene’s outlets are franchised to local partners, raising concerns among industry experts of how to maintain standards.

The stronger rival in Chinese coffee market is Starbucks, the first foreign coffee chain to open an outlet in China back in 1999. By far, it has more than 1,600 stores in more than 80 Chinese cities. In addition, another 200 new stores are planned for the second half of this year, or more than one a day, this substantial growing number puts Starbucks on the top list of rivals in the Chinese coffee market. For “China Coffee Market Report 2015-2017” is available upon request, please contact DCCC, or email to: info@dccchina.org