“Increasing consumer interest and exciting new market offerings facilitate the growth of the coffee market in China. On the one hand, consumers expect further exploration of coffee flavours to satisfy their curiosity, while one the other they constantly look for products that are beneficial to their wellbeing, both physically and emotionally. Meanwhile, as the market is already bombarded with female-oriented marketing, a focus on the underserved male market may create novel opportunities.”
– Marta Zhang, Senior Research Analyst
This report discusses the following key topics:
- Future market outlook and growth prospects of instant coffee in the next five years
- New product launches and market activities
- Consumption usage and purchase channels of different coffee types
- Preference regarding tasting factors, claims and peripheral products
- Attitudes towards coffee under the evolving coffee culture.
Collapse All
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Overview
- What you need to know
- Key issues covered in this Report
- Covered in this Report
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Executive Summary
- The market
- Figure 1: Best and worst case forecast of total retail value sales of instant coffee, China, 2017-22
- Figure 2: Total retail value sales of drip bag coffee, China, 2020-22
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- Figure 3: Total retail vale sales of pod coffee, China, 2020-22
- Companies and brands
- Figure 4: Leading instant coffee companies, by retail value share, 2020-22
- The consumer
- Instant coffee still dominant, but is facing increasing challenge
- Figure 5: Consumption usage, China, 2022
- Comprehensive shopping websites gain highest purchase channel penetration
- Figure 6: Purchase channels, China, 2022
- Intensity, body and aroma are the most important tasting factors
- Figure 7: Tasting factors – Flavour and appearance, China, 2022
- Opportunity lies in highlighting emotion-uplifting benefits
- Figure 8: Interest in niche claims, China, 2022
- Cups and coffee makers are preferred by majority
- Figure 9: Peripheral product preferences, China, 2022
- Consumers have formed the habit of drinking coffee
- Figure 10: Attitudes towards coffee – Selected attitudes, China, 2022
- What we think
- The market
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Issues and Insights
- Introduce coffee tasting set for flavour exploration
- The facts
- The implications
- Figure 11: Flavour exploration mix by Fisher Coffee, China, 2022
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- Figure 12: Origin series drip bag coffee set by Zhi Hu Zhi Wu, China, 2022
- Provide lower-caffeine products for emotional comfort
- The facts
- The implications
- Figure 13: Product examples of low/decaffeinated coffee, Global, 2021
- Leverage the underserved male market
- The facts
- The implications
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- Figure 14: store by. jpg x Mentholatum EX, China, 2022
- Figure 15: Nivea Men x Tim Hortons Coffee, China, 2022
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Market Size, Segmentation and Forecast
- Fast development witnessed in instant coffee market
- Figure 16: Best and worst case forecast of total retail value sales of instant coffee, China, 2017-22
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- Figure 17: Best and worst case forecast of total retail volume sales of instant coffee, China, 2017-22
- Stable growth of drip bag coffee despite the COVID-19 outbreak in 2022
- Figure 18: Total retail value sales of drip bag coffee, China, 2020-22
- Increase in coffee machine sales drives pod coffee value growth
- Figure 19: Total retail vale sales of pod coffee, China, 2020-22
- Fast development witnessed in instant coffee market
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Market Factors
- Coffee bean price increase influences the retail coffee market
- Coffee is transiting towards being a normal daily drink
- Increasing usage of coffee machines
- Expansion of business model facilitates retail market value growth
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Market Share
- Nestlé sustains its dominant position with expanded products
- Figure 20: Leading instant coffee companies, by retail value share, 2020-22
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- Figure 21: Nespresso x DBH, 2022
- Domestic giant Saturnbird expands with unprecedented speed
- Figure 22: Liquid coffee by Saturnbird, China, 2022
- Fierce battleground for winning position in retail coffee market
- Figure 23: Trung Nguyen Legend physical store, China, 2022
- Nestlé sustains its dominant position with expanded products
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Marketing Activities
- Use creative packaging to catch attention
- Figure 24: Product examples of innovative individual packaging, China, 2022
- Health and fitness are shaping the coffee industry
- Figure 25: Product examples of coffee with fitness claims, China, 2022
- Figure 26: Tasogare as the exclusive coffee supplier of the 19th Asian Games in Hangzhou 2022, China, 2022
- Communication on city series is getting popular
- Figure 27: Product examples of city edition coffee products, China, 2022
- Use creative packaging to catch attention
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New Product Trends
- More new formats enter the market
- Figure 28: New coffee* launches, by format type, China, 2017-22
- Figure 29: Examples of new format coffee products, China, 2022
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- Figure 30: CoffeeB capsule-free coffee, Switzerland, 2022
- Better-for-you products are on the rise
- Figure 31: New coffee* launches, by minus claims, China, 2017-22
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- Figure 32: Product examples of coffee with functional benefits, China, 2022
- Fast-changing flavour evolution
- Figure 33: New coffee* launches, by flavours, China, 2017-22
- Figure 34: Examples of new coconut flavoured coffee launches, China. 2022
- Sustainable approach for better future
- Figure 35: New coffee* launches, by ethical claims, China, 2017-22
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- Figure 36: Yongpu UFO-recycle Program, China, 2022
- Figure 37: Product examples of environmentally-friendly packaging coffee, Global, 2021
- More new formats enter the market
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Consumption Usage
- Instant format is still among the top, but is going downhill
- Figure 38: Consumption usage, China, 2022
- Niche coffee formats gaining popularity in lower-tier cities
- Figure 39: Consumption usage, by city tier, China, 2021 vs 2022
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- Figure 40: Consumption usage, by company type, China, 2022
- Pet owners are more likely to be coffee consumers
- Figure 41: Consumption usage, by selected living situation, China, 2022
- Instant format is still among the top, but is going downhill
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Purchase Channels
- Online shopping websites channel dominates in all four coffee formats
- Figure 42: Purchase channels, China, 2022
- Coffee houses are a popular purchase channel for pod coffee
- Figure 43: Purchase channels, China, 2022
- Young consumers purchase from a wide range of channels
- Figure 44: Purchase channels of instant coffee – Repertoire analysis, by age, China, 2022
- Figure 45: Purchase channels of instant coffee – Selected channels, by age, China, 2022
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- Figure 46: Financial status – A lot better off/a little bit better off, by age, China, 2021-22
- Online shopping websites channel dominates in all four coffee formats
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Tasting Factors
- Intensity, body and aroma are crucial for coffee drinkers
- Figure 47: Tasting factors – Flavour and appearance, China, 2022
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- Figure 48: Colombia Huila Specialty Drip Coffee by Luckin Coffee, China, 2022
- Suitability for blurring is crucial for liquid coffee/coffee concentrate
- Figure 49: Tasting factors – Pairing, China, 2022
- More female consumers place acidity as important tasting factor
- Figure 50: Tasting factors – Acidity, by gender, China, 2022
- Figure 51: Costa Rica Honey Coffee by Algebraist, China, 2022
- Intensity, body and aroma are crucial for coffee drinkers
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Interest in Niche Claims
- Opportunity lies in highlighting emotion-uplifting benefits
- Figure 52: Interest in niche claims, China, 2022
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- Figure 53: Interest in niche claims – Relaxing, by monthly personal income, China, 2022
- Figure 54: Decaf drip bag coffee by Colin Coffee, China, 2022
- Functional claims are a plus
- Figure 55: TURF Analysis – Interest in niche claims, China, 2022
- Different interest among men and women
- Figure 56: Interest in niche claims, by gender, China, 2022
- Figure 57: Tasogare coffee with added collagen, China, 2022
- Opportunity lies in highlighting emotion-uplifting benefits
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Peripheral Product Preferences
- Coffee-related utensils are preferred by majority
- Figure 58: Peripheral product preferences, China, 2022
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- Figure 59: Coffee Meeting Water by Saturnbird, China, 2022
- Capture the preference of pet owners
- Figure 60: Peripheral product preferences – Selected items, by living situation, China, 2022
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- Figure 61: Yongpu x Purlab, China, 2022
- Figure 62: Kitten collection drip coffee by Luckin Coffee, China, 2022
- Diversified peripheral product preferences among different gender and age groups
- Figure 63: Peripheral product preferences, by gender and age, China, 2022
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- Figure 64: Coffee Crispy Ball by Zhi Hu Zhi Wu, China, 2022
- Coffee-related utensils are preferred by majority
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Attitudes towards Coffee
- Consumers have formed the habit of coffee drinking
- Figure 65: Attitudes towards coffee – Consumption habits, China, 2022
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- Figure 66: Attitudes towards coffee – Select item, by coffee type, China, 2022
- Figure 67: Attitudes towards coffee – Agree, by gender and age, China, 2022
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- Figure 68: Saturnbird stars coffee mix, China, 2022
- Knowledge-sharing to attract affluent consumers
- Figure 69: Attitudes towards coffee, by monthly personal income, China, 2022
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- Figure 70: Attitudes towards coffee – Agree, by monthly personal income, China, 2022
- High expectations from consumers towards coffee concentrate
- Figure 71: Attitudes towards coffee – Coffee concentrate, China, 2022
- Consumers have formed the habit of coffee drinking
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Food Personas
- Who are they?
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- Figure 72: Food personas, China, 2022
- Figure 73: Food personas, by monthly personal income, China, 2022
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- Figure 74: Food personas, by age, China, 2022
- Critical shoppers value emotional benefits as well as physical health
- Figure 75: Interest in niche claims – Select items, by food persona, China, 2022
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- Figure 76: Interest in niche claims – CHAID Analysis, China, 2022
- Suitability for pairing is important for critical shoppers and new trend explorers in terms of instant coffee
- Figure 77: Tasting factors of instant coffee – Select items, by food persona, China, 2022
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Appendix – Market Size, Segmentation and Forecast
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- Figure 78: Total retail value sales of instant coffee, China, 2017-27
- Figure 79: Total retail volume sales of instant coffee, China, 2017-27
- Figure 80: Total retail value sales of drip bag coffee, China, 2020-22
- Figure 81: Total retail value sales of pod coffee, China, 2020-22
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Appendix – Methodology and Abbreviations
- Methodology
- Abbreviations
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