China Coffee Market - Segmented by Source, Product, Flavor, and Process (2018 - 2023)

  • ID: 4472643
  • Report
  • Region: China
  • 80 pages
  • Mordor Intelligence
1 of 4


  • Costa Coffee
  • Lavazza
  • Nestle
  • Pepsico (Ting Hsin)
  • Seattle
  • Starbucks
  • MORE
The China coffee market is predominantly composed of fresh roasted coffee. According to Coffee consumption of China, from January to November 2015, the Instant coffee segment makes up around 13.9% by value. Fresh roasted coffee holds a share of 83.4% of the china coffee market.

The market is expected to grow with a CAGR of 3% during the forecast period 2018 - 2023. The China coffee market records a growth of 15% from 2015 to 2016, making China the most attractive coffee consumption market by 2020.The total coffee value from the tier 1-2 cities from January to November 2015 is USD 3.06 billion. The consumption of china has grown to 16% from 2004-2013. Nestlé (China) Ltd continues to dominate coffee in China in 2016 with a retail value share of 66%.

Increasing number of specialist coffee shops and cafés

Coffee market in China reached 65,000 tons in 2016. This was mainly due to rising consumer interest in the coffee culture and demand for quality coffee in China, leading to a rise in coffee consumption. However, the number of specialist coffee shops and cafés in retail expanded rapidly in order to cater to the increasing demand. The rising popularity of coffee shops and coffee culture is promoting growth in fresh roast and ground coffee. Furthermore, on-trade sales are increasing faster than retail sales, with the number of café outlets in China estimated at 13,834 by the end of 2013. Coffee drinking has become fashionable and a daily drinking habit, especially among young consumers.

Arabica to dominate the China coffee market by source type

Coffee is still predominantly grown in Yunnan province, which accounts for over 95% of China’s coffee output. It exclusively grows Arabica coffee, and has a large province with an area of 394,000 km2. The Coffee Association of Yunnan has set a target of 4 million bags of production by 2020. There are also small amounts of Robusta grown on the island of Hainan, situated in south China, and in Fujian province, in the southeast. With the market domination of instant coffee, the most popular types of instant coffee in China are the 3-in-1 products which contain coffee, sugar and whitener, as well as potential flavorings.

Leading players in coffee are moving towards premium products to seek more profit and sustain growth in China. Premiumisation is capitalized as a new marketing strategy. Nestlé worked on developing premium product ranges and launched limited coffee pods, and released a set of new models of Dolce Gusto coffee pod machine, Circolo, Genio and Melody, in 2016.

Key Developments
  • December 2017: The Seattle-based coffee company opened a 30,000-square-foot store in Shanghai. It is the largest Starbucks in the world, spanning an area nearly twice as large as the next biggest, a Roastery in Seattle that opened three years ago.
  • October 2017: Whitbread Plc announces that costa has acquired 49% of its south china joint venture from its JV partner, Yueda, for 35 million Euros.

Reasons to Purchase this Report
  • Analyzing outlook of the market with the recent trends and Porter’s five forces analysis
  • Market dynamics which essentially consider the factors which are impelling the present market scenario along with growth opportunities of the market in the years to come
  • Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
  • Country level analysis integrating the demand and supply forces that are influencing the growth of the market
  • Competitive landscape involving the market share of major players along with the key strategies adopted for development in the past five years
  • Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis and strategies employed by the major market players
  • 3 months analyst support along with the Market Estimate sheet in excel.
Customization of the Report
  • Value chain analysis
  • Consumer behavior analysis in country level
Note: Product cover images may vary from those shown
2 of 4


  • Costa Coffee
  • Lavazza
  • Nestle
  • Pepsico (Ting Hsin)
  • Seattle
  • Starbucks
  • MORE
1. Introduction
1.1 Research Methodology
1.2 Market Definition
1.3 Report Description

2. Market Overview
2.1 Market Trend

3. Market Dynamics
3.1 Drivers
3.1.1 Growing Millenial Population
3.1.2 Growing demand for Non-Alcoholic drinks
3.1.3 Increasing outlets of speciality coffee shops
3.2 Restraints
3.2.1 Price Fluctuations of Coffee Beans
3.2.2 High consumption of hot drinks (tea)
3.3 Opportunities
3.3.1 Innovations in the coffee market
3.4 Porter's Five Forces Analysis
3.4.1 Bargaining Power of Suppliers
3.4.2 Bargaining Power of Buyers
3.4.3 Threat of New Entrants
3.4.4 Threat of Substitute Products and Services
3.4.5 Degree of Competition

4. Segmentation
4.1 By Source Type
4.1.1 Arabica
4.1.2 Robusta
4.1.3 Liberica
4.2 By Product Type
4.2.1 Whole-Bean
4.2.2 Ground Coffee
4.2.3 Instant Coffee
4.2.4 Others
4.3 By Flavor
4.3.1 Flavor Vanilla Caramel Irish Cream Hazelnut Others
4.3.2 Non-Flavor
4.4 By Process
4.4.1 Caffeinated
4.4.2 De-Caffeinated

5. Competitive Landscape
5.1 Most Adopted Market Strategies
5.2 Most Active Companies
5.3 Market Share Analysis

6. Company Profiles
6.1 Maxwell House (Mondelez China Inc)
6.2 Starbucks
6.3 Nestle
6.4 Seattle
6.5 Costa Coffee
6.6 Lavazza
6.7 Pepsico (Ting Hsin)
6.8 You Ji Jia (Shanghai) Food Trading Co
6.9 UBC
6.10 McDonalds
6.11 Zhejiang Liangan

7. Appendix
7.1 Sources
7.2 Disclaimer
Note: Product cover images may vary from those shown
3 of 4


4 of 4
  • Maxwell House (Mondelez China Inc)
  • Starbucks
  • Nestle
  • Seattle
  • Costa Coffee
  • Lavazza
  • Pepsico (Ting Hsin)
  • You Ji Jia (Shanghai) Food Trading Co
  • UBC
Note: Product cover images may vary from those shown
5 of 4
Note: Product cover images may vary from those shown