China instant coffee market is projected to grow at a CAGR of 8.49% over the forecast period, increasing from US$2,330.940 million in 2021 to US$4,122.516 million by 2028.
Highlights:
- 1China’s shift from traditional tea consumption toward coffee culture, especially among younger consumers and urban professionals, is significantly boosting demand for instant coffee.
- 2Rising presence of global coffee brands such as Starbucks and Nestlé has accelerated coffee adoption and helped expand the country’s instant coffee market.
- 3Rapid growth in retail e-commerce and internet penetration is strengthening online instant coffee sales, supported by convenience, smartphone usage, and expanding digital marketplaces in China.
- 4Manufacturers are launching innovative products such as ready-to-mix and café-style instant coffee options to meet changing consumer preferences and at-home consumption trends.
Key Highlights:
The transition from traditional tea consumption to coffee and global coffee chains shifting to China is boosting the instant coffee demand in the anticipated time frame. The China Coffee Association Beijing (CCAB) reports that the yearly growth rate of coffee consumption is 15%. The market's current leaders, such as Starbucks and Nestle, have significantly contributed to developing China's coffee culture. The increasing demand for coffee in China can also be attributed to increased coffee farming in China. According to China Briefing, the production of coffee in 2021-22 was 2 million 60 kilograms of coffee, up from 1.8 million in the year 2020-21.
Instant coffee vendors have much to gain from China's shift in tastes, which may be attributed to millennial consumption habits. Companies see a huge potential in the Chinese market and are indulging in new and innovative instant coffees. For instance, in response to the growing desire for "cafe-style cold coffee experiences" at home, the Swiss food and beverage giant, Nestlé, will launch its Nescafe Ice Roast instant coffee in China in April 2023.
China Instant Coffee Market Growth Drivers:
Increasing retail e-commerce sales.
According to the International Trade Administration, in 2021, China's retail e-commerce sales reached US$2.77 trillion, representing a 20% increase over 2020's sales figure. Also, according to the World Bank, 73% of China's population was active internet users in 2021, signifying a 9% increase over 2019's penetration rate. Such an increase in China's retail e-commerce and internet usage will positively impact the scale of online instant coffee buying. According to the 2020 joint survey issued by Alibaba and Ele.me, China's online coffee buying has grown 1.5 times since 2019, with instant coffee constituting 13.5% share of the overall coffee products.
A shift of younger professionals from traditional tea to coffee.
In China, tea is still the preferred beverage, although coffee is becoming increasingly popular, particularly among young professionals and in metropolitan areas. The Chinese government funded the coffee exposition in Haikou to advance both domestic and international coffee commerce and Chinese coffee culture. As per the USDA, China's coffee production significantly increased after the coffee exposition. In 2016-2017, the consumption in China was 3.7 million bags, which is only four to five cups of coffee per person in China, according to the International Coffee Organization.
But the shift to coffee came rapidly in China as the younger population started to consume coffee regularly. In 2021-22, the average cups consumed by Chinese people reached 6.2 cups per capita. Instant coffee plays a very big part here as it is easy to make and even it is easy to carry. Additionally, offices in China have started using instant coffee regularly.
China's extensive distribution channels
Based on distribution channels, China's instant coffee market is segmented into offline and online channels. The online channel is expected to be fueled by the growing internet and smartphone penetration in China. Higher flexibility and convenience provided by online channels make them more suitable for shopping than offline channels such as retail stores. Rapid urbanization in China and growing internet penetration have boosted online buying in the country.
China Instant Coffee Market Developments:
Moreover, new product launches of instant coffee coupled with online store establishment are expected to further propel the usage of online channels for instant coffee buying. For instance, in February 2021, China's online instant coffee brand Saturnbird Coffee launched limited edition espressos for the Lunar Year that started in China on February 12, 2021, and ended on January 30, 2022.
China Instant Coffee Market Scope:
| Report Metric | Details |
|---|---|
| Total Market Size in 2028 | USD 4,122.516 million |
| Forecast Unit | USD Million |
| Growth Rate | 8.49% |
| Study Period | 2018 to 2028 |
| Historical Data | 2018 to 2021 |
| Base Year | 2022 |
| Forecast Period | 2023 – 2028 |
| Segmentation | Type, Distribution Channel, Province |
| Companies |
|
| Customization Scope | 15% Free Customization included with purchase — Request Custom Breakdown → |
| Sample & Data Access | PDF Sample, Excel Databook & Analyst Briefing — Download Free Sample → |
Market Segmentation
BY TYPE
- Freeze-Dried Instant Coffee
- Spray-Dried Instant Coffee
- Others
BY DISTRIBUTION CHANNEL
- Offline
- Retail
- Food services
- Online
BY PROVINCE
- Guangdong
- Fujian
- Others
Table of Contents
1. INTRODUCTION
1.1. Market Overview
1.2. Market Definition
1.3. Scope of the Study
1.4. Market Segmentation
1.5. Currency
1.6. Assumptions
1.7. Base, and Forecast Years Timeline
2. RESEARCH METHODOLOGY
2.1. Research Design
2.2. Research Data
2.3. Validation
3. EXECUTIVE SUMMARY
3.1. Key Findings
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. CHINA INSTANT COFFEE MARKET, BY TYPE
5.1. Introduction
5.2. Freeze-Dried Instant Coffee
5.3. Spray-Dried Instant Coffee
5.4. Others
6. CHINA INSTANT COFFEE MARKET, BY DISTRIBUTION CHANNEL
6.1. Introduction
6.2. Offline
6.2.1. Retail
6.2.2. Food services
6.3. Online
7. CHINA INSTANT COFFEE MARKET, BY PROVINCE
7.1. Introduction
7.2. Guangdong
7.3. Fujian
7.4. Others
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrative
8.3. Mergers, Acquisition, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. COMPANY PROFILES
9.1. Hainan LISUN Investment Co., Ltd.
9.2. Nestle
9.3. Strauss Group
9.4. Hindustan Unilever Limited
9.5. Olam International
Frequently asked questions
What is the current valuation and projected growth rate of the China Instant Coffee Market?
The China Instant Coffee Market was valued at US$2,330.940 million in 2021. It is projected to reach US$4,122.516 million by 2028, growing at a Compound Annual Growth Rate (CAGR) of 8.49% over the forecast period, reflecting significant market expansion.
What are the primary growth drivers anticipated for the China Instant Coffee Market through 2028?
Key drivers include the transition from traditional tea consumption to coffee, the strategic entry and expansion of global coffee chains, and increasing retail e-commerce sales. A surge in internet usage and a shift in preferences among younger professionals are also significantly boosting instant coffee demand.
Which demographic shifts and consumption habits are most significantly impacting the instant coffee market in China?
Millennial consumption habits and a pronounced shift among younger professionals from traditional tea to coffee are key influencers. This demographic prefers instant coffee for its ease of preparation and portability, contributing to the rise in per capita consumption from 4-5 cups in 2016-17 to 6.2 cups in 2021-22.
Who are the leading companies shaping the competitive landscape of the China Instant Coffee Market?
Market leaders such as Starbucks and Nestlé have significantly contributed to developing China's coffee culture and market. These companies continue to innovate, with Nestlé, for instance, launching Nescafe Ice Roast in China in April 2023 to cater to evolving consumer demands for 'cafe-style cold coffee experiences' at home.
How do e-commerce and internet penetration influence the distribution and sales of instant coffee across China?
China's robust retail e-commerce sector, which reached US$2.77 trillion in sales in 2021, combined with 73% internet user penetration, greatly facilitates instant coffee sales. Online coffee buying has grown 1.5 times since 2019, with instant coffee constituting a 13.5% share of overall online coffee products.
What role does local coffee production play in the growth of China's instant coffee market?
Increasing domestic coffee farming directly supports market growth, with China's coffee production rising from 1.8 million kilograms in 2020-21 to 2 million 60 kilograms in 2021-22. This expanded local supply, partly stimulated by government initiatives, helps meet the burgeoning demand for coffee ingredients for instant coffee production and consumption within the country.
Cite this report
Knowledge Sourcing Intelligence. (May 2026). China Instant Coffee Market - Strategic Insights and Forecasts (2023-2028). https://www.knowledge-sourcing.com/report/china-instant-coffee-market