China coffee production statistics
Coffee Production Statistics in China
In fact, up to the beginning of 2016, the coffee cultivation area in China exceeded 1,2 billion square metres, with a production quantity of 140,000 tons, which covers 1,5% of total World Coffee production.
In recent years, both the production and consumption of coffee in China have been growing at double-digit rates, and show few signs of slowing. It is estimated that China now produces more coffee than Kenya and Tanzania combined, and consumes more than Australia. As the economy of China continues to grow, the pool of consumers with disposable income expands and demand for coffee rises accordingly. The presence of coffee shops is no
longer a novelty, but rather an essential feature of the urban landscape. Although still predominantly a tea-drinking nation, China is rapidly developing a taste for coffee, which could have significant implications for the world market.
Market structure of Chinese Coffee
According to market research firm Euromonitor, the Chinese coffee market is predominantly composed of instant coffee. Indeed, instant coffee makes up around 99% of retail sales by volume and 98% by value, although fresh roasted coffee is growing at a faster rate. The most popular types of instant coffee are the 3-in-1 products which contain coffee, sugar and whitener, as well as potential flavourings. Nevertheless, the rising popularity of coffee shops and coffee culture in general is promoting growth in fresh roast and ground coffee. Furthermore, on-trade sales are increasing faster than retail sales, with the number of café outlets in China estimated at 13,834 by the end of 2013. As disposable incomes rise, consumers tend to ‘trade up’ to a more premium product. The most dynamic growth is found in retail sales of coffee pods, although in absolute terms they remain a niche category.