China: an unprecedented development on coffee!

I maestri della tostatura media

When we think of China, the mind immediately runs to tea: ancient ceremonies, prized leaves, traditions dating back thousands of years. But there is a new drink that is conquering the country, one cup at a time.
Today, on ABCoffee (the blog of Caffè Ernani), I just had to tell you about this cultural revolution involving our beloved coffee!

What is happening in China is incredible: an unprecedented expansion of consumption, a social, economic and cultural transformation that has already changed the rules of the game.

Get ready to discover the future of coffee, which perhaps…starts right in the East!

Until not so long ago, the idea of “drinking coffee” in China translated into a sachet of instant coffee, often mixed with sugar and powdered milk. This readily available and inexpensive product marked the beverage’s entry into the Chinese market. However, as average incomes, curiosity about Western cultures, and the desire to experiment increased, consumer tastes evolved.

In China today, people do not drink coffee just for the caffeine, but for a lifestyle.

Recent years have seen an explosion in the consumption of filter, espresso, and especially Specialty coffee. The new generations-particularly Millennials and Gen Z-are very attentive to quality, sustainability, and the consumption experience.

By 2023, total coffee consumption in China was estimated to have reached about 22 million 60-kilogram bags, with steady annual growth. There are more than 7,800 coffee shops in the city of Shanghai alone, surpassing metropolises such as Tokyo, London and New York.

But the most interesting data come from future projections: the annual growth rate of the coffee market in China is expected to be around 10 percent until 2028. An expansion driven by a young, urban, curious and digitized audience.

China’s coffee culture is being built with very different characteristics from the traditional characteristics of historical coffee producing or consuming countries.

In China, coffee is often associated with innovation, social status, and taste for aesthetics.

Some highlighted trends in fact are:

  • Latte coffee lover: the most widely drunk coffee in China is accompanied by milk, especially latte macchiato, often flavored and served cold, both for taste, but especially for the Instagrammability of the drinks with Latte Art.
  • Hybrid experiences: coffee shops are not just places to have a drink, but spaces for socializing, working, studying, and leisure. Not coincidentally, there are coffee shops that repair bikes, sell flowers, with workout rooms of all kinds, and so on.
  • Digital first: the Chinese almost always order online, via apps, social and delivery platforms. Payment is exclusively digital, so Roasters and Cafeterias organize work and think about beverages in a way that can meet these very needs.
  • Brand experience: Chinese consumers look for brands that can tell stories, offer appealing designs and curated products. It’s not enough that it’s good, it really has to be worth it all-around!

For these reasons, although Starbucks played a pioneering role in introducing Western coffee culture to China (with more than 6,500 stores in more than 250 cities), local chains dominate the scene today.
Luckin Coffee, founded in 2017, has grown at an impressive rate, surpassing Starbucks in number of outlets as early as 2023, with more than 13,000 stores nationwide.

Unlike the classic coffee shop model, Luckin coffee focuses on small “pick-up” outlets, with no seating, ordering only via app, competitive prices, and continuous promotions. This strategy has proven successful, especially for a young, tech-addicted audience.

In addition to Luckin coffee, many other micro-chains are emerging, such as Seesaw Coffee, Manner Coffee, M Stand, and Saturnbird, which combine design, storytelling, and attention to product quality. Some of these brands are already expanding to other Asian countries as well.

One of the most fascinating aspects of coffee development in China is the enhancement of local production. The Yunnan region in the southwest of the country is the heart of Chinese coffee cultivation: it produces more than 95 percent of the coffee grown in China.

Originally geared toward the production of robusta and low grade coffee intended for the instant industry,

Yunnan is now focusing on quality arabica, varieties such as Catimor, Typica, and Bourbon, and sustainable farming practices.

Through targeted investment, training, improved infrastructure and collaborations with international experts, China is beginning to produce Specialty coffees that compete with those from Latin America or Africa, even winning international awards.

Perhaps the most interesting aspect of the expansion of coffee in China is the way it is being integrated into the local culture. It is not a simple westernization…

coffee is reinterpreted with an authentically Chinese style.

Just think of drinks such as “coffee with cheese tea,” variations with traditional Chinese ingredients (red beans, black sesame, tapioca pearls), or the minimalist design of cafeterias inspired by feng shui.

Coffee is becoming part of the cultural language, a new form of personal expression and a bridge between tradition and modernity.

This immediately generates opportunities for international roasters.
This whole scenario generates opportunities for international roasters, although it brings a certain level of complexity. Artisanal roasters and specialty coffee brands can find fertile ground, provided they understand and respect the specifics of the local market.

Again, what are Chinese consumers looking for?

  • Products with attention to detail, from packaging to aroma
  • Traceable origins and authentic stories
  • Fluid and engaging digital experiences
  • Attention to health (less sugary, plant-based drinks, etc.).
  • Constant innovation
  • Working with local partners, studying cultural and linguistic trends, and customizing offerings are key steps to successfully entering the market.

China’s path in the world of coffee is just beginning, but it is proceeding at an astonishing speed. With a population of more than 1.4 billion people, including hundreds of millions in rapid economic development, the potential is immense.

China is not simply adopting coffee: it is reinventing it.

For us at Ernani, who have always been attentive to quality and the evolution of taste, watching this change closely is a source of continuous inspiration. And who knows, maybe one day, our medium roast coffee will land in Chinese cups as well.

For now, let’s stay tuned, cup at the ready. The coffee journey is just beginning, and it still has many surprises to offer.

Marketing, E-commerce e Social Media Manager
Coffee Lover

Author

Martina Mazzoleni

Marketing, E-commerce e Social Media Manager Coffee Lover

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Bisogno di aiuto?
Ciao 👋
sono Martina, come ti possiamo aiutare?
Risponderò a qualsiasi tua domanda dal lunedì al venerdì, dalle 9.00 alle 18.00! ☕️💛