China Instant Coffee Market Size, Share, COVID-19 Impact, Opportunities, And Trends By Type (Freeze-Dried Instant Coffee, Spray-Dried Instant Coffee, Others), By Distribution Channel (Offline (Retail, Food Services), Online), And By Province - Forecasts From 2022 To 2027

Published:  Jun 2022 Report Code: KSI061613671 Pages: 120

China instant coffee is projected to grow at a compound annual growth rate of 7.33% over the forecast period to attain a market size of US$3,608.595 million in 2027, from US$2,199.001 million in 2020. The market is projected to grow at a significant pace owing to the rapidly growing coffee consumption in the country. The shift from the traditional tea-consuming country to the most promising market for coffee growers and international coffee chains is further augmenting the instant coffee market growth in the forecast period. As  W with the expanding coffee chains in China, including the largest coffee chain retailer, Starbucks is strengthening its footprint in the country. The company grew its number of stores by three times, from over 1000 stores in 2013 to more than 3000 in 2018.

With the evolving customer dietary patterns, along with the evolving living standards of the citizens, coffee drinking is gaining traction among urban consumers. The Chinese are keen to explore new coffee products from abroad. The country is ranked at a lower position in terms of coffee consumption on a per capita basis in comparison to the other countries of the world like the United Kingdom and the United States., h However, the total coffee consumption increased at a CAGR of around 16% in the last decade, surpassing the world average of 2% (source: International Coffee Organization). As per the USDA estimates, coffee consumption in China accounted to hold a market size of for around 3.7 million 60kg bags during the time period 2016-2017.

The fast-growing customer base of the country, including the middle-class population, is further propelling the market demand in the forecast period. This is due to the increasing purchasing power of the consumers with their growing disposable income and increasing family income. The millennials also have an impact on Chinese coffee consumption, this group of the population is considered to be the most educated, and is a well-traveled generation, hence are well-aware of the coffee health benefits in addition to consuming coffee as one of the refreshing drinks, further contributing to propagating e the market demand during the forecast period. The millennials, who are well-influenced by the online mode of purchases are known to purchase varied coffee products including instant coffee via e-commerce platforms with safe payment options. Millennials, who are heavily influenced by online shopping, are known to buy a variety of coffee products, including instant coffee, through e-commerce platforms with secure payment options. 

Organizations are adopting strategies in the form of collaborative partnerships for increasingto increase coffee consumption. For example, Starbucks and Alibaba collaborated by opening the Starbucks Roastery in Shanghai in late 2017, and the consumers were offered a new retail experience through augmented reality, further giving rise to increased ing customer foot traffic, and simultaneously surging the sales of coffee products.

COVID-19 SCENARIO

The COVID-19 pandemic has had the least impact on the Chinese coffee market as a whole. Furthermore, as a result of the government's severe lockdown measures, Chinese consumers have turned to at-home coffee drinking, resulting in an increase in instant coffee sales in the country during the COVID-19 epidemic. Young consumers, on the other hand, have significantly fueled instant coffee sales, with young female customers contributing for more than 60% of total consumption. During the COVID-19 lockdown period, sales of novel instant coffee increased by 80% on e-commerce sites such as Tmall, JD, and Pinduoduo.

Key Development

  • Oct 2021- In China, Nestlé and Starbucks have launched a top-of-the-line instant coffee capsule.

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
1. Introduction
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation

2. Research Methodology
2.1. Research Data
2.2. Assumptions

3. Executive Summary
3.1. Research Highlights

4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Function
4.4. Function Value Chain Analysis

5. China Instant Coffee Market Analysis, 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 Analysis, By Distribution Channel
6.1.  Introduction
6.2.  Offline
6.2.1. 6.2.1. Retail
6.2.2.  Food Services
6.3.  Online

7. China Instant Coffee Market Analysis, 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 Lucrativeness
8.3.  Mergers, Acquisitions, 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

Hainan LISUN Investment Co., Ltd.

Nestle

Strauss Group

Hindustan Unilever Limited

Olam International

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