China Coffee Market Exhibits Steady Growth with Projected CAGR of 1.90% from 2024 to 2029

Dublin, March 28, 2024 (GLOBE NEWSWIRE) -- The "China Coffee - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029" report has been added to's offering.

The Chinese coffee market has shown a promising growth trajectory, with an estimated valuation of USD 2.1 billion in 2024 and a forecast to reach USD 2.3 billion by 2029. This expansion reflects a compound annual growth rate (CAGR) of 1.90% over the forecast period. Spurred by increasing accessibility through the burgeoning presence of coffee shops and e-commerce platforms, coffee's popularity continues to rise among Chinese consumers.

Increasing Popularity of Coffee in China

The sustained growth is supported by a compound of factors, including the robust expansion of both international and domestic coffee chains, such as Luchin Coffee and more renowned names like Starbucks. These coffee houses have significantly increased coffee accessibility throughout China, contributing to a cultural shift where coffee is increasingly embraced. Moreover, the perception of coffee as a health-conscious choice, when consumed in moderation, adds to its rising consumption.

Rise in Consumption and Government Support

Although tea remains a staple in Chinese tradition, coffee has been gaining ground, especially in metropolitan areas and among professionals. The coffee consumption rate has seen a substantial increase, with an annual growth rate of 15%, as per the China Coffee Association Beijing (CCAB). Government initiatives, such as the endorsement of events like the I-coffee Exposition in Haikou, have further bolstered the market by promoting the coffee trade and culture within the nation.

Market Dynamics Fueled by E-commerce and Government Initiatives

Concurrently, China's coffee production is concentrated in southern provinces, with Yunnan accounting for over 60% of the country's coffee. The establishment of the Tea and Coffee Industry Bureau in Yunnan underscores the local government’s commitment to market growth. However, the nation still relies heavily on imports, spotlighting an opportunity for increased domestic production and R&D investment. E-commerce also plays a pivotal role in market dynamics. With retail e-commerce sales in China hitting USD 2.77 trillion in 2021 – a 20% increase from the prior year – and with 73% of the population as active internet users, the online coffee market is poised for substantial growth, offering convenience and variety to consumers.

Segment Growth: Instant Coffee Gains Prominence

The instant coffee segment maintains a substantial share in the market due to its convenience and the evolving preferences of the middle class. Flavor innovations and a surge in online retailing for instant coffee products are expected to continue to stimulate market growth. Product innovations, such as the introduction of coffee-derived products by prominent brands, further diversify offerings and elevate consumer engagement. The Chinese coffee market's competitive landscape features a mingling of global and local players vying to meet the diversified demand for coffee through product and packaging innovation. Social media and online distribution channels play a crucial role in the marketing strategies of these companies as they look to solidify their market presence with increased production and investment.

A selection of companies mentioned in this report includes, but is not limited to:

  • Nestle SA
  • Starbucks Corporation
  • Luckin Coffee
  • Hainan LISUN Investment Co.
  • Dehong Hogood Coffee Co. Ltd
  • Gloria Jean's
  • The Kraft Heinz Company
  • The Coca-Cola Company
  • JAB Holding Company
  • Luigi Lavazza SpA

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