2021
0
China On-premise Coffee Consumption Market Report 2021
2021-11-13T03:14:15+00:00
OX1047309
3695
145256
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Report
en_GB
“Thanks to the recovery of foodservice, on-premise coffee rebounded from COVID-19 quickly with the continued expansion of key players and investment flows in the industry. However, confronting competition from RTD…

China On-premise Coffee Consumption Market Report 2021

£ 3,695 (Excl.Tax)

Report Summary

“Thanks to the recovery of foodservice, on-premise coffee rebounded from COVID-19 quickly with the continued expansion of key players and investment flows in the industry. However, confronting competition from RTD and instant coffee formats, as well as growing product homogeneity in on-premise coffee, to be competitive brands must increase digitalisation and standardisation and optimise in-store experiences to improve convenience, accessibility, and reputation as well as add social attributes.”
– Rika Huang, Research Analyst

Key issues covered in this report

  • Market growth and competitive landscape of on-premise coffee.
  • Innovative product launches and marketing activities for on-premise coffee.
  • Consumers’ usage and drink selection in on-premise coffee.
  • Consumption occasions and purchasing behaviour in on-premise coffee.

Table of Contents

  1. Overview

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

            • The market
              • Quick rebound from COVID-19
                • Figure 1: Forecast of on-premise coffee industry, by value sales, China, 2016-26
              • Expansion is rapid but uncertainty prevails
                • Figure 2: Forecast of on-premise coffee industry, by coffee house numbers, China, 2016-26
              • Companies and brands
                • Key players invest more
                  • Money influx empowers expansion
                    • Figure 3: Number of renowned brands’ coffee house outlets, China, 2019-20
                  • The consumer
                    • Higher penetration but fewer daily users than instant and RTD coffee
                      • Figure 4: Consumption usage – by category penetration, 2021
                      • Figure 5: Consumption usage – by consumption frequency, 2021
                    • Dense channels distribution benefits penetration
                      • Figure 6: Consumption channel and frequency, 2021
                    • Rising homogeneity among coffee houses
                      • Figure 7: Drink selection, 2021
                    • Lack of coffee knowledge leads to vague understanding of tastes
                      • Figure 8: Purchase factors, 2021
                    • Home delivery for weekdays, in-store service for weekends
                      • Figure 9: Purchase behaviour, 2021
                    • Food pairing is preferred and coffee-related products gain popularity
                      • Figure 10: Spinoff products at coffee houses, 2021
                    • What we think
                    • Issues and Insights

                      • Turn on-premise coffee into social currency via crossover marketing
                        • Figure 11: Seesaw & Museum of Art Pudong, China, 2021
                        • Figure 12: HABITAT, China, 2021
                        • Figure 13: COS cooperates with coffee baristas, China, 2021
                        • Figure 14: Examples of DOE’s one day barista event, China, 2021
                      • Enhance digitalisation and standardisation for convenience
                          • Figure 15: Example of Starbucks cooperating with Hema, China, 2021
                        • Reinterpret on-premise coffee’s function beyond refreshing
                          • Figure 16: Example of coffee designed to improve exercise performance, 2020
                          • Figure 17: Claims related to weight management of RTD coffee new launch products, China, 2016-2021
                          • Figure 18: Example of bulletproof coffee, 2020
                          • Figure 19: Example of Blueglass and Lululemon cooperation campaign, China, 2021
                      • Market Size and Forecast

                        • Market value rebounds after COVID-19
                          • Figure 20: Forecast of on-premise coffee industry, by value sales, China, 2016-26
                        • Active expansion of key players boosts volume growth
                          • Figure 21: Forecast of on-premise coffee industry, by coffee house numbers, China, 2016-26
                      • Market Factors

                        • Eating out consumption is trending up
                          • Figure 22: Change in spending – spent more, 2020-2021
                        • Higher income has positive impact on the penetration of on-premise coffee
                          • Figure 23: Consumption frequency, by personal income level, 2021
                          • Figure 24: National personal disposable income, China, 2019-20
                        • Famous Yunnan coffee beans enhance coffee localisation
                        • Market Share

                          • Starbucks continues expanding both online and offline
                            • Luckin is reinventing its brand awareness
                              • Figure 25: Outlets of Luckin’s self-operated stores and partnership stores, June 2020 – June 2021
                            • McCafé and Par Café leverage existing channels to expand quickly
                              • Costa shifts focus to RTD coffee
                                • Inflow of investment accelerates expansion of emerging brands
                                  • Figure 26: Number of renowned brands’ coffee house outlets, China, 2019-20
                              • Marketing Activities

                                • A café in the daytime, a bar at night
                                  • Leading brands pioneering environmentally friendly and sustainable stores
                                    • Figure 27: Manner’s eco-friendly pop-up store in Huaihai TX, China, 2021
                                    • Figure 28: Starbucks Greener Store, China, 2021
                                  • Instant coffee brand competing with on-premise coffee spaces
                                      • Figure 29: Coffee house of Saturnbird Coffee – Into_the force, China, 2021
                                  • New Product Trends

                                    • Unconventional coffee cups
                                      • Figure 30: Examples of on-premise coffee with various packaging, China, 2021
                                    • Highlighting the foam texture in white coffee drinks
                                        • Figure 31: Examples of on-premise coffee featuring rich foam, China, 2021
                                      • Seasonings with rich taste
                                          • Figure 32: Examples of on-premise coffee featuring seasonings, China, 2021
                                        • Regional flavour innovation
                                            • Figure 33: Examples of on-premise coffee featuring regional flavour, China, 2021
                                          • Tastes from Yunnan originated beans are increasing
                                            • Figure 34: Share of instant coffee with “Yunnan” in product description, China, 2016-21
                                            • Figure 35: Examples of brands communicating Yunnan origin, China, 2021
                                        • Consumption Usage

                                          • Penetration outperforms instant and RTD coffee
                                            • Figure 36: Consumption usage – by category penetration, 2021
                                            • Figure 37: Consumption usage – by cross-category penetration of top 3 coffee categories, 2021
                                          • Consumption frequency limited by convenience and availability
                                            • Figure 38: Consumption usage – by consumption frequency, 2021
                                        • Consumption Channels

                                          • Increase penetration via existing channels
                                            • Figure 39: Consumption channel – by consumption frequency, 2021
                                          • New Retail and independent coffee houses expand in penetration
                                            • Figure 40: Ranking of channel penetration, China, 2020-2021
                                        • Drink Selection

                                          • Convenience stores dazzle with RTD options beyond coffee
                                            • Figure 41: Drink selection, 2021
                                          • Coffee houses’ competitiveness hampered by homogenous offerings
                                            • Figure 42: Drink selection, by selected channels, by selected types of drinks, 2021
                                          • Premiumisation opportunity in Americano
                                            • Figure 43: Drink selection, by selected channels, by monthly personal income and city tier, 2021
                                          • Gen-Z and females favour innovative coffee drinks
                                            • Figure 44: Drink selection, by selected channels, by gender and age, 2021
                                        • Purchase Factors

                                          • Consumers rely on taste due to lack of coffee knowledge
                                            • Figure 45: Example of detailed flavour description, China, 2021
                                            • Figure 46: Purchase factors, 2021
                                          • More affordable caffeine
                                            • Figure 47: Purchase factors – by consumption frequency, by functions, 2021
                                            • Figure 48: Ranking of purchasing factors, by consumers who care about function, 2021
                                            • Figure 49: Purchase factors, by function, by age group, 2021
                                            • Figure 50: McCafé Wake-up Coffee, China, 2021
                                          • Differentiate between black and milk coffee
                                            • Figure 51: Purchase factors, by consumers who prefer black or white/milk coffee, 2021
                                            • Figure 52: Pairing interest, by consumers who care about milk base, 2021
                                        • Drinking Behaviour

                                          • Noon and afternoon are heavy coffee consumption periods
                                            • Figure 53: Example of Starbucks weekday discount
                                            • Figure 54: Drinking behaviour – by drinking occasion, 2021
                                          • On-premise coffee wins with weekend socialising attribute, but losses out in weekday convenience
                                            • Figure 55: Drinking behaviour – by drinking occasion, by top three penetration coffee categories, 2021
                                          • Home delivery brings more flexibility
                                            • Figure 56: Drinking behaviour, by purchase behaviour, 2021
                                        • Spinoff Products at Coffee Houses

                                          • On-premise coffee brands endorse coffee spinoff products
                                            • Figure 57: Spinoff products at coffee houses, 2021
                                          • Enhance in-store experiences with professional courses
                                            • Figure 58: Spinoff products at coffee houses, selected products by city tier and education level, 2021
                                            • Figure 59: Examples of on-premise coffee brands with barista training class
                                          • NPD in cups focuses on young women’s demand
                                            • Figure 60: Spinoff products at coffee houses, selected product, by gender and age, 2021
                                            • Figure 61: Examples of seasonal Starbucks cups on social media, China, 2021
                                        • Appendix – Market Size and Forecast

                                            • Figure 62: Market value of on-premise coffee, 2016-2026
                                            • Figure 63: Total outlets of on-premise coffee, 2016-2026
                                        • Appendix – Methodology and Abbreviations

                                          • Methodology
                                            • Abbreviations

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