Analysis of coffee industry market size and industry chain

China Business Information Network: "Coffee" is one of the three major beverages in the world, rich in protein, crude fiber, crude fat, caffeine, etc. Because of its unique mellow taste and refreshing and exciting effects, it has gradually become an indispensable daily drink for modern people. Coffee occupies an important position in global trade and is one of the symbols of Western culture. However, due to the monopoly of tea culture in traditional Chinese culture, the development of coffee culture in China is extremely slow. However, with the change of people's consumption concepts, Western goods and consumption habits are gradually accepted, and more and more people are beginning to like coffee drinks.

Coffee industry market size

As people's living standards improve, more and more people accept and like coffee. According to a survey conducted in 12 inland cities, 32% of urban residents drink coffee. In addition to Shanghai, Beijing, Kunming, Xiamen, Hangzhou and Tianjin are also the regions where the proportion of people who have drunk instant coffee in the past year is above 30%. Among them, young men and women consume coffee in coffee shops, housewives and urban white-collar workers over 35 years old have become the fastest growing groups drinking coffee at home.

As coffee is popular among consumers, the number of coffee shops in China has already exceeded 100,000. However, in recent years, the “explosion” of coffee shops has led to an intensified reshuffle of the industry, and the number of coffee shops showed negative growth in 2016. As of December 16, 2016, there were 909.43 million coffee shops in China.

Data source: compiled by China Business Industry Research Institute

From the analysis of coffee product types and prices: consumers generally accept the standard price of 30 yuan, the most popular is "Matcha Frappuccino" coffee, followed by Frappuccino; vanilla latte and mocha Frappuccino are tied for third.

Data source: compiled by China Business Industry Research Institute

Industrial Chain

Coffee, tea and cocoa are known as the three major beverage plants in the world. Coffee, also known as "coffee", is called this in Japan, Taiwan, Hong Kong and other places. The coffee tree is an evergreen small tree belonging to the Rubiaceae family. The coffee we drink daily is made from coffee beans with various cooking utensils. Coffee beans refer to the kernels inside the fruit of the coffee tree, which are then baked using appropriate methods and taste bitter. The most primitive upstream of the coffee industry chain is the coffee planting industry, because the main raw material of coffee is coffee beans. In addition, a complete cup of coffee also requires sugar, protein, minerals, vitamins and other raw materials to be made through mixing, grinding and other processes.

With the deepening of Western concepts and the improvement of people's living standards in recent years, people love to drink coffee more and more. The "coffee culture" that follows is full of every moment of life. Whether at home, in the office, or in various social occasions, people are tasting coffee, and it is gradually associated with fashion and modern life. In such a huge coffee market, the downstream coffee industry has also benefited from it. The downstream of the coffee industry is mainly sales channels, such as large supermarkets, coffee shops, restaurants; even small convenience stores will sell coffee. In addition, with the rapid development of e-commerce platforms, the variety of products on e-commerce platforms is wide, and the range of choices is wider, so more and more consumers like to go online to buy the type of coffee they like!

Source: China Business Industry Research Institute

From the perspective of coffee brands:

1. Traditional giant brands still dominate traffic

Traditional chain brands represented by Starbucks and Man Coffee are still ahead of other stores in store traffic.

2. Specialty coffee has a chance to make a comeback

The boutique coffee shop Zhiguan ranks first in average traffic per store, counterattacking the traditional giant Starbucks;

3. Some giant brands are weak

Whether in terms of brand traffic or average single-store traffic, Costa from the UK and McCafe under McDonald's unexpectedly ranked at the bottom.