2021
0
China Instant, Drip Bag and Pod Coffee Market Report 2021
2021-11-09T03:09:16+00:00
OX1047301
3695
144353
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Report
en_GB
“Instant coffee, being as the first cup of coffee among many consumers, has an important role in China’s coffee consumption. Product upgrades around flavour and format help rejuvenate the category…

China Instant, Drip Bag and Pod Coffee Market Report 2021

£ 3,695 (Excl.Tax)

Report Summary

“Instant coffee, being as the first cup of coffee among many consumers, has an important role in China’s coffee consumption. Product upgrades around flavour and format help rejuvenate the category by satisfying consumers’ evolving needs. Brands can proactively help consumers sustain their in-home habits since the COVID-19 outbreak as well as create new occasions with novel flavours and fun recipes. Meanwhile, with growing environmental concerns, it’s important for brands to reduce impact on environment and establish an ethical brand image while deliver novel packages.”

– Roolee Lu, Senior Research Analyst

Key issues covered in this Report

  • Future market outlook and growth prospects of instant coffee in the next five years
  • Latest new product trends and market activities
  • Consumption trends and occasions of different types of coffee
  • Purchase journey for convenient coffee products
  • Coffee preference and pairing interest to understand domestic coffee consumers

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Covered in this Report
          • Definition
          • Executive Summary

              • The market
                • Figure 1: Best-and worst-case forecast of total retail value sales of instant coffee, China, 2016-26
                • Figure 2: Total retail value sales of drip bag coffee, China, 2019-21
                • Figure 3: Total retail value sales of pod coffee, China, 2019-21
              • Companies and brands
                • Figure 4: Leading instant coffee companies, by retail value share, 2019-21
              • The consumer
                • Instant coffee outperforms freshly made coffee and RTD coffee in consumption frequency
                  • Figure 5: Consumption usage, by segment penetration, 2021
                  • Figure 6: Consumption usage, by consumption frequency, 2021
                • Online channels share similar importance with offline channels
                  • Figure 7: Purchase channel, 2021
                • Convenient coffee consumption is driven majorly by flavour
                  • Figure 8: Choice factor, 2021
                • Freeze-dried instant coffee is more associated with a tasty image than traditional formats
                  • Figure 9: Correspondence analysis of coffee format perception, 2021
                • Consumers are interested in adding coffee into plant-based drinks
                  • Figure 10: Pairing interest, 2021
                • More consumers make white coffee by adding fresh milk than using pre-mixing products
                  • Figure 11: Product preference – select items, 2021
                • What we think
                • Issues and Insights

                  • Redefine convenience with upgraded quality and novel formats
                    • The facts
                      • The implications
                        • Figure 12: Le Pur ONESHOT ice drip instant coffee, China, 2021
                      • Develop recyclable program to convey ethical brand images
                        • The facts
                          • The implications
                            • Figure 13: New coffee* launches, by top 10 package types, China, 2016-21
                            • Figure 14: Recycling from Nespresso and Saturnbird, China, 2021
                          • Foster consumers’ in-home consumption habits with DIY experience
                            • The facts
                              • The implications
                                • Figure 15: Recipes from Nescafé Gold Xiao Ka Qu, China, 2021
                                • Figure 16: DIY recommendations from Tasogare, China, 2021
                            • Market Size, Segmentation and Forecast

                              • Instant coffee experienced accelerated growth over the past two years
                                • Figure 17: Best-and worst-case forecast of total retail value sales of instant coffee, China, 2016-26
                                • Figure 18: Best-and worst-case forecast of total retail volume sales of instant coffee, China, 2016-26
                              • Drip bag coffee benefited from the COVID-19 outbreak
                                • Figure 19: Total retail value sales of drip bag coffee, China, 2019-21
                              • Pod coffee is expected to sustain robust value growth in 2021
                                • Figure 20: Total retail value sales of pod coffee, China, 2019-21
                            • Market Factors

                              • Instant coffee as the most common choice to begin coffee journey
                                • Figure 21: Consumption habit, 2021
                              • On-going product premiumisation in soluble/instant format
                                • Figure 22: Average price per 100ml/g of new coffee launches, by format type, China, 2018-21
                              • Per capita consumption in China is still far behind developed markets
                                • Figure 23: Total market volume consumption per capita of coffee, by selected markets, 2019
                              • Coffee is heated up by capital support
                              • Market Share

                                • Nestlé still keeps the monopoly position in the instant coffee market…
                                  • Figure 24: Leading instant coffee companies, by retail value share, 2019-21
                                • …while JDE Peet’s is promoting business growth in China
                                  • The rise of domestic disruptors
                                  • Marketing Activities

                                    • From online to offline
                                      • Figure 25: Saturnbird’s offline concept store ‘into_the force’, China, 2021
                                    • Coffee houses are expanding beyond on-premise occasions
                                      • Figure 26: Product examples of instant coffee from coffee house brands, China, 2021
                                      • Figure 27: Product examples of pod coffee from coffee house brands, China, 2021
                                    • The breakthrough of Yunnan coffee
                                      • Figure 28: Product examples of Yunnan coffee from Saturnbird, Sense Café and Yongpu, China, 2021
                                    • Utilise collaborations to create excitement and attract new consumers
                                      • Figure 29: Yongpu’s collaborations with other brands, China, 2020-21
                                      • Figure 30: Saturnbird’s Project &, China, 2021
                                  • New Product Trends

                                    • Accelerated NPD activities with growing focus on soluble/instant formats
                                      • Figure 31: New coffee* launches, China, 2016-21
                                      • Figure 32: New coffee* launches, by product format, China, 2016-21
                                    • The emerging of novel coffee formats
                                      • Figure 33: Product examples of concentrated (liquid) coffee, China, 2021
                                      • Figure 34: Product examples of innovative coffee formats, China, 2020-21
                                    • Freeze-drying technique is widely used in new coffee launches
                                      • Figure 35: New convenient coffee launches featuring freeze dried, China, 2016-21
                                      • Figure 36: Product examples of freeze-dried coffee, China, 2020-21
                                    • Floral and fruit flavours are on the rise
                                      • Figure 37: New coffee* launches, by top flavour component subgroup, China, 2016-21
                                      • Figure 38: Product examples of floral and fruit-flavoured coffee, China, 2020-21
                                      • Figure 39: Product examples of tea-flavoured coffee, China, 2020-21
                                  • Consumption Usage

                                    • Instant coffee has a dominant role in coffee consumption
                                      • Figure 40: Consumption usage, by segment penetration, 2021
                                      • Figure 41: Consumption usage, by consumption frequency, 2021
                                    • Sophisticated coffee consumers seek diverse convenient coffee formats
                                      • Figure 42: Consumption usage – segment penetration, by age, 2021
                                      • Figure 43: Consumption usage – segment penetration, by monthly personal income, 2021
                                    • Gen Zs develop the habit of consuming instant coffee on weekday mornings
                                      • Figure 44: Consumption usage, by consumption occasion, 2021
                                      • Figure 45: Consumption usage – consumption occasion of instant coffee, by generation, 2021
                                  • Purchase Channel

                                    • Online channels are neck and neck with offline channels
                                      • Figure 46: Purchase channel, 2021
                                    • Diversified channel preference among different age groups
                                      • Figure 47: Repertoire analysis of purchase channel, by age, 2021
                                      • Figure 48: Purchase channel, by age, 2021
                                  • Choice Factor

                                    • Consumption is majorly driven by taste rather than expertise
                                      • Figure 49: Choice factor, 2021
                                    • Price is a less important factor for niche coffee formats
                                      • Figure 50: Choice factor – select items, by consumption frequency – once a week or more, 2021
                                    • Co-branding is not an effective approach to attract consumption interest
                                      • Figure 51: Saturnbird’s collaboration with independent coffee houses Slab Town and Blacksheep, China, 2021
                                  • Coffee Format Perception

                                    • Freeze-dried instant coffee differentiates from traditional product in taste
                                      • Figure 52: correspondence analysis* of coffee format perception, 2021
                                      • Figure 53: Coffee format perception, 2021
                                    • Drip bag coffee and pod coffee are perceived as options with upgraded quality
                                      • Coffee concentrate can highlight its versatility to create new occasions
                                        • Figure 54: Repertoire analysis of pairing interest, by consumption frequency – once a week or more, 2021
                                        • Figure 55: Pairing guide for Yongpu’s cold brew coffee, China, 2021
                                    • Pairing Interest

                                      • Milk is most preferred, followed by planted-based options
                                        • Figure 56: Pairing interest, 2021
                                        • Figure 57: Pairing interest – plant-based drinks, by region, 2021
                                      • Oat milk is preferred by consumers in tier 2 cities or lower
                                        • Figure 58: Pairing interest, by city tier, 2021
                                        • Figure 59: Yongpu x Oatly, China, 2021
                                      • Inspire consumers with novel recipes beyond dairy and plant-based options
                                        • Figure 60: Repertoire analysis of pairing interest, 2021
                                    • Product Preference

                                      • Consumers show strong preference towards white coffee
                                        • Figure 61: Product preference – select item, by age and monthly personal income, 2021
                                        • Figure 62: Product preference – select item, by age, 2021
                                      • Stronger preference towards coffee house brands and classic flavours
                                        • Figure 63: Product preference – select items, 2021
                                      • More females and affluent consumers prefer freeze-dried products and novel packaging
                                        • Figure 64: Product preference – select items, by age and monthly personal income, 2021
                                    • Appendix – Market Size, Segmentation and Forecast

                                        • Figure 65: Total retail value sales of instant coffee, China, 2016-26
                                        • Figure 66: Total retail volume sales of instant coffee, China, 2016-26
                                        • Figure 67: Total retail value sales of drip bag coffee, China, 2019-21
                                        • Figure 68: Total retail value sales of pod coffee, China, 2019-21
                                    • Appendix – Methodology and Abbreviations

                                      • Methodology
                                        • Abbreviations

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