CCTV: Coffee Market Booming! 300 Million Consumers!

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China's Coffee Market: Rapid Growth and Transformation

According to recent industry estimates, China currently has approximately 300 million coffee consumers. As the number of coffee lovers continues to grow, the coffee industry in the Chinese market is gradually showing vigorous vitality and has become a "good business" in the eyes of capital. Many well-known companies are actively expanding into the coffee sector across different industries.

To date, China already has 166,000 coffee-related enterprises. Among them, more than 22,000 new enterprises were registered from January to September 2022, with a growth rate of 36.4%. According to relevant surveys, 91.4% of consumers will have a more favorable impression of a coffee brand if Chinese-style flavors are added to their coffee products. The coffee sector is growing rapidly, and the domestic coffee market is rising quickly.

It is understood that previously, there was a saying circulating in the coffee industry: "six losses, three break-evens, one profit," which means that out of ten stores, six suffer losses, three break even, and only one makes a profit. However, with the acceleration of urbanization and the improvement of people's living standards, China has gradually become a major coffee-consuming country. This industry has slowly begun to generate profits and has become the fastest-growing market globally in recent years.

The coffee sector has always been highly competitive, with businesses constantly either "on the road to opening cross-industry stores or preparing to open cross-industry stores." Since 2020, industry giants from various sectors such as Li-Ning, China Post, Huawei, Tongrentang, Sinopec, and NIO have also crossed into the coffee business, indicating the popularity of this sector.

Types of Coffee Products in the Market

From the perspective of current consumption patterns, coffee products are mainly divided into three categories: instant coffee, freshly ground coffee, and ready-to-drink coffee. Among them, instant coffee holds the largest market share. Taking SATURNBIRD as an example, although it has only been established for 7 years, it has become a hot internet-famous brand, frequently appearing in coffee reviews or recommendations on social platforms.

The reason instant coffee can occupy more than half of the market share can be attributed to its high cost-effectiveness and convenience. For sleepy office workers and students, it not only saves time on going out or ordering takeout but also meets high-frequency demands while saving money, making it undoubtedly the best choice.

As for freshly ground coffee, although its current market share is not as large as instant coffee, it undoubtedly has the greatest development potential. Currently, freshly ground coffee has become a rapidly growing category in China. According to media reports, iResearch released a research report on China's freshly ground coffee industry in 2022, showing that the market size of China's freshly ground coffee is expected to reach 190 billion yuan by 2024. With the growing coffee consumer base, there is a higher pursuit of coffee quality, which has driven the birth of more and more offline freshly ground coffee shops.

However, in the context of consumption upgrading, the coffee industry is welcoming transformation. Today's ready-to-drink coffee market is also bustling with activity. Ready-to-drink coffee is favored by consumers due to its more convenient purchasing scenarios, higher cost-effectiveness, and more popular flavor characteristics. Although it may not match the quality of freshly ground coffee, currently no other type of coffee is more convenient than it. No cups or water are needed for brewing – just open the cap and drink, getting caffeine instantly, which is extremely convenient.

The Youth and Coffee Culture

Today's coffee shops and young people have a "mutual selection" relationship. From the perspective of current coffee quick-service stores, their store design and packaging design cater to the aesthetics of young people to the greatest extent. Coffee shops with various styles such as light luxury minimalist, trendy cool, retro, and Instagram-famous can be easily found on online platforms.

Although young people have different reasons for choosing coffee, various brand products are attracting more and more young people in their unique ways. Young people are gradually becoming the main force in consumption upgrading and the new economy. China's coffee culture is gradually becoming younger. It can be said that whoever wins over the young people will win in the future.

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