Market Size of China Coffee Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 1.90 % |
| 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 size is estimated at USD 2.06 billion in 2023. It is projected to reach USD 2.26 billion by 2028, registering a CAGR of 1.90% during the forecast period (2023-2028).
- The growing demand for coffee in China can be attributed to a resilient chain of international and domestic coffee shops, such as Luchin Coffee and Starbucks, that have expanded significantly in China, making coffee more accessible and familiar. Further, the perception of coffee as a health-conscious choice when consumed in moderation by consumers has contributed to its popularity. In addition, the growth of e-commerce platforms has made it easier for consumers to purchase high-quality coffee.
- While tea remains the traditional drink in China, the demand for coffee continues to grow, especially in urban areas and among working professionals. According to data from the China Coffee Association Beijing (CCAB), coffee consumption is increasing at an annual rate of 15%.
- Favorable government interventions are further supporting the market growth. For instance, the Chinese government supported the I-coffee Exposition in Haikou to promote the international coffee trade and coffee-drinking culture in the country. The I-Coffee Exposition is focused on coffee production, marketing, and consumption. The current leaders in the market, like Starbucks and Nestle, have also 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 grounded 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).
| 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 Size Summary
The Chinese coffee market is experiencing a notable expansion, driven by the increasing presence of both international and domestic coffee chains, such as Starbucks and Luchin Coffee, which have made coffee more accessible to the Chinese populace. The perception of coffee as a health-conscious beverage and the rise of e-commerce platforms facilitating the purchase of high-quality coffee have further fueled this growth. Despite tea being the traditional beverage, coffee consumption is on the rise, particularly in urban areas and among professionals. Government initiatives, such as the I-coffee Exposition, are also promoting coffee culture and trade, contributing to the market's development. However, China's coffee production is limited, with significant reliance on imports, highlighting the need for increased investment in research and development to boost domestic production.
The instant coffee segment holds a substantial share of the market, attributed to its convenience and the changing lifestyles of middle-class consumers who are increasingly embracing Western cultural trends. Online retailing is expected to gain prominence, offering consumers a wide variety of choices and ease of purchase. Product innovations, such as flavored instant coffees and ready-to-drink coffee cocktails, are further driving market growth. The competitive landscape is marked by both local and global players, including Starbucks, Nestle, and JAB Holding Company, who are investing in production facilities and leveraging social media and online channels for marketing. Recent product launches, like Nestle's Nescafe Ice Roast and Luckin Coffee's Cotti Coffee, reflect the market's dynamic nature and the ongoing efforts to cater to evolving consumer preferences.
China Coffee Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Government Initiatives and E-commerce Penetration
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1.2 Market Restraints
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1.2.1 Detrimental Health Impact of Caffeine Intake
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Product Type
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2.1.1 Whole-bean
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2.1.2 Ground Coffee
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2.1.3 Instant Coffee
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2.1.4 Coffee Pods and Capsules
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2.2 By Distribution Channel
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2.2.1 On-trade
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2.2.2 Off-trade
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2.2.2.1 Supermarkets/Hypermarkets
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2.2.2.2 Specialty Stores
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2.2.2.3 Convenience Stores
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2.2.2.4 Online Retail Stores
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2.2.2.5 Other Distribution Channels
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China Coffee Market Size FAQs
What is the current China Coffee Market size?
The China Coffee Market is projected to register a CAGR of 1.9% during the forecast period (2024-2029)
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.
