During the COVID-19 pandemic, coffee takeaway orders grew strongly, with the search rate for coffee on e-commerce platforms almost doubling. However, this could not make up for the decline in physical foodservice outlets, with overall foodservice sales plummeting in 2020.
Although Nestlé (China) continued to dominate coffee in China in value terms in 2021, second-placed Changsha Saturnbird Coffee took more share from the leader after doubling its sales for a third year. This can partly be attributed to the fact that in March 2020, Changsha Saturnbird Coffee received another round of financing, with its valuation reaching CNY0.
In 2021, fresh ground coffee pods was dominated by Nestlé with two main brands, Nescafé Dolce Gusto and Nespresso. However, starting from 2019 it also offered a third brand, thanks to the launch of new Starbucks At Home coffee pods in China by chained specialist coffee shops brand Starbucks in conjunction with Nestlé.
As the smallest hot drinks category, coffee has promising prospects for growth. From generation Z and consumers in low-tier cities, as well as white-collar workers and sophisticated mothers, the consumer group is expanding, which is set to drive growth.
Coffee is a highly concentrated category in China, with Nestlé (China) dominating thanks to its strong dominance of instant coffee and fresh ground coffee pods. However, its high share in coffee is increasingly being threatened by the rise of local brands such as Saturnbird from Changsha Saturnbird Coffee Co and Pu Coffee from Shanghai Yongpu Cultural and Creative Co.
The Kunshan Economic Development Zone covers an area of ??33 hectares and has advantages in terms of location and transportation. It aims to become an industrial park that integrates high-end food production, research and development and sales, hoping to attract high-end food projects.
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Understand the latest market trends and future growth opportunities for the Coffee industry in China with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Coffee industry in China, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This is the aggregation of fresh coffee and instant coffee. Please note that foodservice sales of coffee are volumes sold to the on-trade (foodservice) sector and not those sold to the consumer.See All of Our Definitions
This report originates from Passport, our Coffee research and analysis database.
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