Market Overview

The China coffee market size reached USD 18,686.4 Million in 2024 and is expected to grow to USD 22,332.0 Million by 2033, reflecting a CAGR of 2% during the 2025–2033 forecast period. The growth is driven by rising demand for premium coffee and increasing café culture fueled by urbanization, a younger demographic, and higher disposable income. Both local and international brands are enhancing their market presence to capitalize on these trends.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

China Coffee Market Key Takeaways

• Current Market Size: USD 18,686.4 Million in 2024
• CAGR: 2% for 2025-2033
• Forecast Period: 2025-2033
• The market growth is propelled by urbanization and modern lifestyle shifts increasing daily coffee consumption.
• Rising disposable income among younger consumers drives preference for premium and specialty coffee.
• Expansion of café culture in major cities is influenced by Western culture and socialization trends.
• E-commerce platform growth and innovative marketing boost coffee accessibility.
• Sustainability and health-conscious options are increasingly shaping consumer preferences.

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Market Growth Factors

The coffee market in China is growing rapidly, with increasing urbanization and modernization leading to a boom in coffee drinking. Growing disposable incomes among people in their 20s and 30s in particular are leading to a growing demand for specialty coffee. Coffee is increasingly considered a lifestyle choice and a status symbol, particularly among young consumers.

With western influence and the spread of café culture, coffee shops and cafes have become popular haunts and fashionable lifestyle choices in coffee houses in Chinese cities, changing attitudes towards drinking coffee. Also, the growth of domestic and foreign coffee shop chains, and of online selling, has spurred growth.

With the rise of e-commerce, coffee has become widely available. Online retailers such as Tmall, JD.com and Pinduoduo, as well as social media influencers (KOLs) on platforms such as WeChat and Douyin, have promoted coffee culture. Furthermore, rising environmental awareness has prompted consumer demand for sustainably produced, organic coffee, and the adoption of ethical business practices, as well as the provision of more plant-based milk products.

Market Segmentation

Breakup by Product Type:

• Whole-bean: Freshly roasted coffee beans sold intact, preferred by enthusiasts for freshness and customizable brewing. The segment grows due to specialty coffee shops and at-home gourmet preparation trends.
• Ground Coffee: Pre-ground coffee favored for convenience and quick brewing, available in various grind sizes suitable for drip machines, French presses, and espresso makers. It is popular for its balance of quality and convenience.
• Instant Coffee: Soluble coffee offering fast preparation, popular in workplaces and among travelers. Growth is driven by long shelf life, affordability, and premium instant coffee options.
• Coffee Pods and Capsules: Single-serve sealed coffee portions designed for specific machines, appealing due to convenience and variety in flavors and blends, expanding with single-serve coffee maker adoption.

Breakup by Distribution Channel:

• On-trade: Coffee served and consumed on-site in cafes, restaurants, hotels, and bars, catering to consumers seeking premium, artisanal coffee in social settings.
• Off-trade: Includes supermarkets and hypermarkets, specialty stores, convenience stores, online retail stores, and others. This channel is for home consumption with a variety of coffee products and widely accessible through multiple retail formats.

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Breakup by Region:

• North China: Rapidly growing market with young urban populations and rising disposable incomes. Increasing number of international chains and specialty shops drive demand, reflecting a shift from traditional tea to coffee consumption.
• East China: Known for dynamic consumer bases and cosmopolitan culture, East China hosts international brands and trendy cafes. The region's coffee culture is sophisticated and expanding due to economic growth and expatriate presence.
• South Central China: Market expansion fueled by proximity to Hong Kong and diverse populations. International chains and local roasters flourish, with consumers favoring innovative cold brews catering to warm climates.
• Southwest China: Growing coffee popularity among young and urban professionals, supported by local production from Yunnan province. The coffee culture blends traditional tastes with Western-style beverages.
• Northwest China: Emerging market driven by urbanization and Western influence. Coffee adoption is gradual, and local coffee shops offer blends catering to evolving consumer preferences.
• Northeast China: Developing market with increasing coffee consumption, influenced by colder climates and younger demographics. Coffee culture is nascent but growing due to rising disposable incomes.

Regional Insights

North China emerges as a dominant region for coffee consumption, driven by youthful, urban populations with growing disposable income. The area experiences a notable shift from tea to coffee, supported by an increasing number of international coffee chains, specialty shops, and a rising demand for unique coffee experiences.

Recent Developments & News

In June 2024, Luckin Coffee signed an MoU with the Brazilian government for a $500 million deal, marking a strategic alliance to bolster global coffee trade and diversify supply channels. In May 2024, American café chain Reborn Coffee partnered with IAID to expand into China, starting with Guangzhou. Additionally, in July 2023, Italian coffee giant illycaffè collaborated with Hangzhou Onechance Tech to enhance e-commerce sales and plans to launch instant coffee products while expanding its café network globally.

Key Players

• Luckin Coffee
• Reborn Coffee
• illycaffè
• ECOM

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