Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

China On-premise Coffee Market Report

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the On-premise Coffee market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

This report looks at consumers’ consumption behaviours of and attitudes towards on-premise coffee drinks and coffee houses which are outlets where coffee drinks account for a sizeable part of sales. Market value is based on expenditure in coffee houses including sales of both coffee drinks and, if any, food. Market volume is based on numbers of outlets.

In this report, on-premise coffee includes:

  • Bakery houses
  • Convenience stores
  • Fast food restaurants
  • Full service restaurants
  • Fast casual dining restaurants
  • Traditional chained coffee houses
  • Freshly made coffee from new retail coffee houses

Excluded:Tea shops which sell coffee.

Key points included

  • Compete in associating with work-related occasions
  • Opportunity to develop healthy snacks with coffee
  • Attract the 20-24s from other categories

Expert analysis from a specialist in the field

Written by Belle Wang, a leading analyst in the Food & Drink sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Upgrading in-store ambience and enriching coffee pairing selections are two aspects to improve on-premise coffee consumers’ overall consumption experience and encourage sustained consumption. Specific actions include but are not limited to building the best environment for business occasions, services and products that could educate over coffee culture, and healthy or indulgent snack-coffee sets. Belle Wang
Food & Drink Analyst

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Covered in this report
        • Excluded
          • Definition
            • Figure 1: Definition of heavy/light/non-users of coffee houses
        • Executive Summary

            • The market
              • Upward value trend of the overall coffee market
                • Figure 2: Best- and worst-case forecast for on-premise coffee, by value, 2013-23
              • Volume keeps growing but will encounter a fall afterwards
                • Figure 3: Best- and worst-case forecast for on-premise coffee, by volume, 2013-23
              • Affordable price promotes the popularity of coffee among Chinese consumers
                • Companies and brands
                  • Intense competition caused by growing number of new entrants
                    • Providing delivery service to compete with other players
                      • Differentiating through combining tea shop drink elements
                        • Robot barista turns up
                          • The consumer
                            • High competitiveness of affordable on-premise coffee vendors
                              • Figure 4: Consumption channels and frequency, China, September 2018
                            • Importance of physical stores
                              • Figure 5: Reasons for sitting in, China, September 2018
                            • Increasing requirements on quality ingredients and processes
                              • Figure 6: Drink selections, China, September 2018
                            • Trend of pairing healthy food with coffee
                              • Figure 7: Food pairing with coffee, China, September 2018
                            • Challenges on new retail coffee development
                              • Figure 8: Purchase reasons, China, September 2018
                            • High satisfaction and expectation on mix-and-match meal deal
                              • Figure 9: Satisfaction and expectation, China. September 2018
                            • What we think
                            • Issues and Insights

                              • Compete in associating with work-related occasions
                                • The facts
                                  • The implications
                                    • Opportunity to develop healthy snacks with coffee
                                      • The facts
                                        • The implications
                                          • Attract the 20-24s from other categories
                                            • The facts
                                              • The implications
                                              • The Market – What You Need to Know

                                                • Value will keep increasing
                                                  • Volume will grow but be followed by a slight decrease
                                                    • Intense competition among both drink categories and coffee vendors
                                                    • Market Size and Forecast

                                                      • A steady growth in value
                                                        • Figure 10: Best- and worst-case forecast for on-premise coffee, by value, 2013-23
                                                      • An increase followed by a downward trend in volume
                                                          • Figure 11: Best- and worst-case forecast for on-premise coffee, by volume, 2013-23
                                                      • Market Factors

                                                        • Coffee as a casual soft drink competes with other sub-categories
                                                          • Freshly made coffee fights with other coffee categories
                                                            • New retail coffee contributes the most growth in coffee consumption
                                                              • Absence of leading brands in specialty coffee market
                                                              • Key Players – What You Need to Know

                                                                • Traditional brands and new retail coffee are increasing availability
                                                                  • C-stores and fast food restaurants compete in lower and mid-level market
                                                                    • Big brands are improving consumption experience
                                                                    • Market Share

                                                                      • Steady growth of leading traditional coffee brands
                                                                        • Figure 12: Leading traditional chain coffee houses, by volume – number of outlets, China, 2016 and 2017
                                                                      • New retail coffee businesses and C-stores are catching up with the traditional big brands
                                                                        • Figure 13: Leading coffee brands, by volume – number of outlets, China, 2018
                                                                      • More international players enter Chinese market
                                                                      • Competitive Strategies

                                                                        • Fast delivery is a strong point
                                                                          • Leading brands put effort into upgrading consumer experience
                                                                            • Using fission marketing to reach potential consumers
                                                                              • Borrowing ideas from tea shop drinks
                                                                                • Figure 14: Coffee drinks borrowing ideas from tea shop drinks, China, 2018
                                                                            • Who’s Innovating?

                                                                              • Probiotics in freshly-made coffee
                                                                                • Figure 15: Probiotics in freshly-made coffee, by Seesaw, China, 2018
                                                                              • Espresso as a dipping sauce
                                                                                • Figure 16: Dipping waffle into espresso, by Knockbox Coffee Company, China, 2018
                                                                              • Technology brings opportunity to go premium
                                                                                • Figure 17: Ratio coffee and cocktail bar, China, 2018
                                                                              • The dream of owning a coffee house has come true
                                                                                • Figure 18: The Pocket Coffee House mini program, by Coffee Box, China
                                                                            • The Consumer – What You Need to Know

                                                                              • Associate with business-related occasions
                                                                                • New retail coffee houses need advantages other than discount and fast delivery
                                                                                  • High expectation on healthy coffee set meals
                                                                                  • Consumption Channel and Frequency

                                                                                    • Convenience stores have gained the highest penetration rate
                                                                                      • Figure 19: Consumption channels and frequency, China, September 2018
                                                                                    • New retail coffee houses have opportunity to surpass others
                                                                                      • More eastern residents visit bakery houses for coffee
                                                                                        • Figure 20: Heavy users buy coffee from bakery houses and fast casual dining, by region, China. September 2018
                                                                                    • Reasons for Sitting in

                                                                                      • High competence of physical stores
                                                                                        • Figure 21: Reasons for sitting in, China, September 2018
                                                                                      • Coffee houses are competing with tea shops for consumers meeting friends
                                                                                        • Figure 22: Reasons for sitting in, China. September 2018
                                                                                      • Become the best choice for business-related occasions
                                                                                        • Figure 23: Selected reason for sitting in, by personal monthly income, China. September 2018
                                                                                        • Figure 24: Selected reasons for sitting in, by generation, China, September 2018
                                                                                    • Drink Selections

                                                                                      • Quality latte and cappuccino bring opportunity for further purchasing
                                                                                        • Figure 25: Drink selections, China, September 2018
                                                                                      • A challenge on cold brew coffee
                                                                                        • Opportunities for providing non-coffee drinks in late hours
                                                                                        • Food Pairing with Coffee

                                                                                          • Food paring selections target the 25-29s and 40-49s
                                                                                            • Figure 26: Other choices for on-premise coffee consumers who pair nuts with coffee, by selected age groups, China, September 2018
                                                                                            • Figure 27: Consumption channels of on-premise coffee heavy users who pair nuts with coffee, by selected age groups, China, September 2018
                                                                                          • Popularity of savoury biscuits will catch up with that of sweet ones
                                                                                            • Figure 28: Food pairing with coffee, China, September 2018
                                                                                          • Upward trend of pairing salad with coffee
                                                                                          • Reasons for Ordering New Retail Coffee

                                                                                            • Good taste is the top reason followed by discount and fast delivery
                                                                                              • Figure 29: Purchase reasons, China, September 2018
                                                                                            • Drive sales by marketing on friend’s recommendation
                                                                                              • Best place for promoting new trials
                                                                                                • Figure 30: Selected purchase reason, by tier one cities, China. September 2018
                                                                                            • Expectations for New Retail Coffee and Services

                                                                                              • Consumers are more interested in set meals
                                                                                                • Figure 31: Satisfaction and expectation, China. September 2018
                                                                                              • Get to know consumers through offline new product tasting events
                                                                                                • Non-food rewards to attract 20-24s
                                                                                                  • Figure 32: Satisfaction and expectation for redeeming non-food rewards, by age, China, September 2018
                                                                                              • Meet the Mintropolitans

                                                                                                • Pay more attention to indoor design and space
                                                                                                  • Figure 33: Consumption channel and frequency, by consumer classification – Mintropolitans, China, September 2018
                                                                                                  • Figure 34: Reasons for sitting in, by consumer classifications, China. September 2018
                                                                                                • Opportunities to widen coffee choices especially cold brew coffee
                                                                                                  • Figure 35: Drink selections, by consumer classification, China, September 2018
                                                                                                  • Figure 36: Number of consumed drink types, by consumer classification, China, September 2018
                                                                                                • Subscription service for Mintropolitans
                                                                                                  • Figure 37: Expectations for new retail coffee and services - subscription service, by consumer classifications, China, September 2018
                                                                                              • Appendix – Market Size and Forecast

                                                                                                  • Figure 38: Sales value of on-premise coffee, China, 2013-23
                                                                                                  • Figure 39: Sales volume of on-premise coffee, China, 2013-23
                                                                                              • Appendix – Methodology and Abbreviations

                                                                                                • Methodology
                                                                                                  • Fan chart forecast
                                                                                                    • Abbreviations