2022
0
China On-premise Coffee Consumption Market Report 2022
2022-10-12T04:03:15+01:00
OX1103113
3695
156432
[{"name":"Coffee Shops","url":"https:\/\/store.mintel.com\/industries\/foodservice\/coffee-shops"}]
Report
en_GB
“China’s coffee market is still at an early stage with high growth potential that can be accelerated with store expansion and omnichannel marketing. Diversified special coffee drinks are favoured by…

China On-premise Coffee Consumption Market Report 2022

£ 3,695 (Excl.Tax)

Description

“China’s coffee market is still at an early stage with high growth potential that can be accelerated with store expansion and omnichannel marketing. Diversified special coffee drinks are favoured by most coffee drinkers in China and have become a sales booster for on-premise coffee brands in the past year. Meanwhile, specialty coffee will be able to grow its audience in China with the popularisation of coffee knowledge and consumers pursuing higher quality products.”

– Bernie Gao, Research Analyst

Key Issues covered in this Report:

  • Market value and volume of on-premise coffee
  • Innovative product launches and marketing activities for on-premise coffee
  • Consumers’ perception of on-premise coffee offerings
  • Usage of on-premise digital services
  • Consumers’ attitudes towards specialty coffee

Table of Contents

  1. Overview

    • What you need to know
    • Key Issues covered in this Report
    • Covered in this Report
    • Definition
  2. Executive Summary

    • The market
    • Key players’ digital investment and resumed coffee consumption lead to total value robustness
      • Figure 1: Forecast of on-premise coffee industry, by value sales, China, 2017-2027
    • Quick recovery as chain brands increase store numbers
      • Figure 2: Forecast of on-premise coffee industry, by coffee house numbers, China, 2017-2027
    • Companies and brands
    • Chain brands will gain higher market share
      • Figure 3: Market share, by the number of outlets, China, 2022
    • The consumer
    • Freshly-made coffee remains top consumption type
      • Figure 4: Segment penetration, China, 2021&2022
    • Higher store coverage can bring stronger consumer stickiness
      • Figure 5: Consumption channel and frequency, China, 2022
    • Position online orderings as a window for consumers to voice feedback
      • Figure 6: Digital services, China
    • Introduce the health benefits of black coffee
      • Figure 7: Correspondence analysis, perception of beverages at coffee houses, China, 2022
    • Stable product quality is the baseline
      • Figure 8: Coffee house features, China, 2022
    • Consumers emphasise taste-related factors
      • Figure 9: Interest in coffee knowledge, China, 2022
    • Specialty coffee can be the next hero product
      • Figure 10: Attitudes towards specialty coffee, China, 2022
    • What we think
  3. Issues and Insights

    • Unlock digitalisation beyond customer services
      • Figure 11: Starbucks China membership in multiple platforms, China,2022
      • Figure 12: Poster for Starbucks’ new retail concept ‘1971 living room’, China, 2021
      • Figure 13: O.P.S e-menu and appointment system, China, 2022
      • Figure 14: Screenshot of the Starbucks partner app, China, 2020
      • Figure 15: An example of IoT temperature sensors, China, 2022
    • Localising the coffee culture
      • Figure 16: Examples of localised coffee brands, China, 2022
      • Figure 17: Examples of special coffee drinks featuring tea, China, 2022
      • Figure 18: Tea and coffee tasting, China, 2022
    • Keep black coffee as the core and diversify the selection with special coffee drinks
      • Figure 19: Grid Coffee outlet and products, China, 2022
      • Figure 20: Examples of fruit coffee, China, 2022
  4. Market Size and Forecast

    • Increased consumption and brands’ digital investment lead to a robust value growth
      • Figure 21: Forecast of on-premise coffee industry, by value sales, China, 2017-2027
    • Total coffee house numbers will reach another peak in the next year
      • Figure 22: Forecast of on-premise coffee industry, by coffee house numbers, China, 2017-2027
  5. Market Factors

    • Foodservice business resumes slowly
    • Green bean price rise has deeply affected the retail coffee market
      • Figure 23: Indicator price of green beans, UK, 2019-2022
    • Other market players cross the boundary of coffee shop operation
      • Figure 24: Select examples of crossover brands, China, 2022
      • Figure 25: Recent examples of crossover brands, China, 2022
    • Extreme low-priced coffee products carve out a new consumer segmentation
      • Figure 26: Examples of extremely low-priced coffee brands, China, 2022
    • Coffee houses becoming socially-aware
      • Figure 27: Xiongzhua Coffee, China, 2022
      • Figure 28: Starbucks sign language store, China, 2022
      • Figure 29: Charity run held by Slab Town, China, 2021
    • Coffee subscription programs hold potential to tackle market uncertainties
      • Figure 30: Instructions for coffee subscription at Blue Bottle Coffee, US, 2022
  6. Market Share

    • QSR and convenience store brands occupy a large share with high coverage
    • Luckin Coffee embraces franchising stores to expand its brand shares
      • Figure 31: Market share, by the number of outlets, China, 2022
  7. Marketing Activities

    • Day part promotions accelerate sales boost
      • Figure 32: Examples of breakfast promotions in coffee houses, China, 2022
      • Figure 33: Example of lunch promotion at Starbucks, China, 2022
    • On-demand delivery will further enhance digitalised promotion
      • Figure 34: Posters of Tims promotion on short-video platforms, China, 2022
    • Coffee venues in cultural landmarks
      • Figure 35: Yi Coffee, China, 2022
      • Figure 36: Examples of coffee venues in cultural landmarks, China, 2022
    • Coffee brands cobranding for lifestyle marketing
      • Figure 37: Posts from Slab Town consumers and the new sneaker, China, 2022
      • Figure 38: Examples of Slab Town cooperation, China, 2021&2022
      • Figure 39: Examples of merchandise from Coffee Spot, China, 2022
  8. New Product Trends

    • Promoting award-winning ranges from equipment to coffee beans
      • Figure 40: Examples of Best New Product award winners, China, 2022
      • Figure 41: Examples of gold medal winning coffee beans from Chinese coffee companies, China, 2022
      • Figure 42: Poster of McCafé’s new product ‘Naitie’, China, 2022
    • Dairy variants have been the product innovation direction
      • Figure 43: Examples of buffalo milk products, China, 2022
    • The fruit element and sparkle mouthfeel of summer coffee drinks
      • Figure 44: Examples of ‘fruit coffee’ new products, China, 2022
      • Figure 45: Example of a coffee brand specialising in fruit coffee, China, 2022
    • ‘C+A’ can be both signatures and innovations
      • Figure 46: Examples of whisky barrel-aged coffee beans, China, 2022
      • Figure 47: Examples of alcoholic special coffee drinks, China, 2022
  9. Consumption Penetration

    • Freshly-made coffee has higher penetration
      • Figure 48: Segment penetration, China, 2021&2022
    • Females aged 25-39 are the key audience for freshly-made coffee
      • Figure 49: Segment penetration, by gender, China
      • Figure 50: Segment penetration of freshly-made coffee, by gender and age, China, 2022
      • Figure 51: Examples of special drinks mainly targeting females from the foreign market, US, 2022
      • Figure 52: Examples of ‘pink drinks’, China, 2022
    • Chengdu can be a fertile location for new coffee brands
      • Figure 53: Segment penetration of freshly-made coffee, by city, China, 2022
      • Figure 54: Examples of the first location of coffee/tea houses powered by luxury brands in Chengdu, China, 2020 & 2022
    • Targeting pet owners
      • Figure 55: Segment penetration of freshly-made coffee, by living status, China, 2022
      • Figure 56: Examples of drinks for pets in coffee houses, China
  10. Consumption Channel and Frequency

    • Availability can largely increase consumption frequency
      • Figure 57: Consumption channel and frequency, China, 2022
    • Chain brands’ resilience to pandemic impact
      • Figure 58: Consumption channels and frequency, by heavy and medium drinkers, China, 2021 & 2022
    • Female consumers showing stronger consumption habits
      • Figure 59: Consumption channel and frequency, by gender, China
  11. Digital Services

    • Position online orderings as a window for consumers to voice feedback
      • Figure 60: Digital services, China
      • Figure 61: Consumer survey after using WeChat payment from McDonald’s, China, 2021
      • Figure 62: Digital services, by repertoire analysis, China
    • Simplified mobile ordering process accommodates the younger generation
      • Figure 63: Digital services of selected services, by generation, China
      • Figure 64: Examples of features of coffee brands’ self-owned apps, China, 2022
    • High household income earners seek elevated experience through digital services
      • Figure 65: Digital services of selected services, by household income, China
      • Figure 66: Example of Starbucks in-store AR activities, China, 2017
      • Figure 67: Peet’s coffee museum on WeChat mini-program, China, 2022
      • Figure 68: Examples of showing the drink preparation process in coffee houses, China, 2022
  12. Perceptions of Beverages at Coffee Houses

    • Perceptions of ‘healthy coffee’ linked with milk pairing
      • Figure 69: Perception of beverages at coffee houses, by correspondence analysis, China, 2022
      • Figure 70: Perception of beverages at coffee houses – healthy, by selected coffee types, by age, China, 2022
      • Figure 71: Example of nutrition information of coffee products, US, 2022
    • Black coffee viewed differently by various household income earners
      • Figure 72: Perception of beverages at coffee houses – black coffee, by selected perceptions, by household income level, China, 2022
    • Alcohol element is highlighted in special coffee drinks innovation
      • Figure 73: Perception of beverages at coffee houses of special coffee drinks vs alcoholic special coffee drinks, by percentage points difference, China, 2022
      • Figure 74: Perceptions of beverages at coffee houses – alcoholic special coffee drinks, by selected perceptions, by gender and age, China, 2022
  13. Coffee House Features

    • Consistent quality and food safety are the key focus
      • Figure 75: Coffee house features, China, 2022
    • Younger generations emphasise service speed…
      • Figure 76: Coffee house features – selected features, by generation, China, 2022
    • …while high monthly household income earners take service and space seriously
      • Figure 77: Coffee house features – selected features, by monthly household income level, China, 2022
  14. Interest in Coffee Knowledge

    • Consumers care more about taste-related factors
      • Figure 78: Interest in coffee knowledge, China, 2022
    • Gen Z have a stronger interest in coffee tasting
      • Figure 79: Interest in coffee knowledge – selected items, by generation, China, 2022
      • Figure 80: Example of flavour comparison activity and the ‘flavour wheel’ of coffee, China & US, 2022
    • Traceability is the communication point to capture high household income earners
      • Figure 81: Interest in coffee knowledge of selected items, by monthly household income level, China, 2022
      • Figure 82: Examples of coffee bean information, China and New Zealand, 2022
  15. Attitudes towards On-premise Coffee

    • Specialty coffee has the growth potential
      • Figure 83: Attitudes towards specialty coffee, China, 2022
      • Figure 84: Cenchi open cupping, China, 2022
    • Brewing methods can enrich the in-store experience
      • Figure 85: Attitudes towards brewing methods, China, 2022
      • Figure 86: Examples of brewing methods at Starbucks, China, 2022
    • Leaving the human connection while providing digital efficiency
      • Figure 87: Attitudes towards digital services in coffee houses, China, 2022
      • Figure 88: Attitudes towards digital services in coffee houses, by agreement with statement ‘Digital services (a) in coffee houses would attract more consumers’, China, 2022
      • Figure 89: Examples of store layout to increase human connection, Japan, 2021
    • Coffee brands’ digitalisation makes customisation easier
      • Figure 90: Attitudes towards mobile order, China, 2022
      • Figure 91: Starbucks incentives for ‘Star Dash’ campaign, China, 2021-2022
      • Figure 92: Starbucks membership loyalty program, US, 2022
      • Figure 93: Attitudes towards customisation – selected statements, by city tiers, China, 2022
  16. Food Persona

    • Who are they?
      • Figure 94: Food persona, China
      • Figure 95: Food persona, by generation, 2022
    • Critical Shoppers are willing to go deep into coffee knowledge…
      • Figure 96: Food persona – critical shoppers, by coffee knowledge, China
    • …Emotional Eaters are eager for sensory experiences
  17. Appendix – Market Size and Forecast

      • Figure 97: Total value sales and forecast of on-premise coffee, China, 2017-2027
      • Figure 98: Total number of outlets and forecast of on-premise coffee, China, 2017-2027
  18. Appendix – Methodology and Abbreviations

    • Methodology
    • Abbreviations

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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