Coffee Market in China

China’s coffee market has grown significantly in the past 5 years with revenue of at least 2 billion in 2023. The country’s coffee market is projected to grow by at least 7% by 2028, which may prompt the question, has coffee market in China reached its potential?

For over millennia, the Chinese have always been a tea drinking nation. However, in the past few decades, the country has slowly, but gradually changed to coffee consumers with the average annual consumption growth rate of 15%. The annual revenue of coffee market in China is expected to reach over 2 billion in 2028 with an average annual consumption of 0.6kg of coffee per person. Here is a table showing the revenue of coffee in china.

Revenue of Coffee in China and future projections (2018-2028)

Year

Revenue in Us dollars

2018

1,000,000,000

2019

1,000,000,000

2020

1,000,000,000

2021

1,000,000,000

2022

2,000,000,000

2023

2,000,000,000

2024

2,000,000,000

2025

2,000,000,000

2026

2,000,000,000

2027

2,000,000,000

2028

2,000,000,000

Total coffee revenue change and future projections (2018-2028)

Year

Percentage (%) change in revenue

2018

 

2019

0.8%

2020

4.6%

2021

5.1%

2022

10.5%

2023

7.6%

2024

6.5%

2025

9.4%

2026

7.6%

2027

7.0%

2028

7.5%

Average coffee revenue per capita in China

Year

Revenue in Us dollars

2018

0.90

2019

0.90

2020

0.94

2021

0.98

2022

1.08

2023

1.16

2024

1.23

2025

1.35

2026

1.45

2027

1.55

2028

1.66

Average volume of coffee consumed in China and future projections (2018-2028)

Year

Volume in Kilograms

Instant Coffee

Roast Coffee

2018

56.5 kg

3.4 kg

2019

56.5 kg

3.8 kg

2020

56.1 kg

4.7 kg

2021

57.0 kg

4.7 kg

2022

60.4 kg

5.8 kg

2023

63.4 kg

6.6 kg

2024

66.0 kg

7.2 kg

2025

70.7 kg

8.2 kg

2026

74.1 kg

9.3 kg

2027

77.6 kg

10.5 kg

2028

81.1 kg

11.7 kg

Percentage volume change in coffee consumption in China

Year

Percentage (%) volume change

2018

2019

0.7%

2020

1%

2021

1.5%

2022

7.4%

2023

5.7%

2024

4.6%

2025

7.7%

2026

5.8%

2027

5.5%

2028

5.4%

Average volume of coffee consumption in China per capita

Year

Volume in Kilograms

2018

0.4kg

2019

0.4 kg

2020

0.4 kg

2021

0.4 kg

2022

0.5 kg

2023

0.5 kg

2024

0.5 kg

2025

0.5 kg

2026

0.6 kg

2027

0.6 kg

2028

0.6 kg

Coffee revenue in China vs Top 5 largest coffee markets in the world

Country

Revenue in US Dollars

China

2,000,000,000

United States

11,000,000,000

Brazil

7,318,000,000

Germany

6.852,000,000

Japan

6,069,000,000

Italy

4,626,000,000

Key Players in China’s coffee market by product type

Product category

Market Share

Brand Name

Percentage (%) share for brands

Instant coffee

75%

Nestle

70%

Ready to drink coffee

10%

Nestle

70%

Fresh ground coffee

15%

Starbucks

50%

China’s coffee market share by product type

Product type

Percentage (%) share of China’s coffee market

Fresh coffee

37.7%

Ready to drink coffee

36.8%

Instant coffee

13.5%

Grown coffee/whole beans

10.3%

Single serve coffee

2.7%

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