On the eve of the outbreak! China's coffee industry market will usher in a "competition"

During the second China International Import Expo, coffee and its related products from all over the world shined!

Nearly 200 products from 15 countries including Switzerland, the Netherlands, the United Kingdom, and Germany were collectively displayed, focusing on coffee series products, a full range of maternal and infant nutrition products, pet food, etc. Among them, Nestlé had a total of 16 new products including the health science product series that debuted at the CIIE.

Various coffee-related products and environmental protection concepts have also entered the Chinese market.

Right now, the Chinese coffee market is becoming more lively than ever before, with capital pouring in from all sides and new and old players competing, and the momentum is comparable to that of new tea drinks.

As various companies are increasing their investment in the coffee business, what they value is the potential and prospects of the Chinese coffee industry market.

According to data from the International Coffee Organization, from 2013 to 2017, coffee consumption in developed countries and regions represented by the European Union, the United States, and Japan has grown slowly or stagnated, while coffee consumption in developed countries represented by Switzerland and Norway has declined; on the contrary, China's coffee imports have shown exponential growth since 2000, especially from 2015 to 2017, when annual coffee consumption increased from 71,000 tons to 129,000 tons, an increase of 82%.

Public data shows that the average annual per capita coffee consumption in China is 3.7 cups, which is much lower than that in Europe, America, Japan and South Korea. As people pursue a better quality of life, there are great opportunities for growth in the coffee market. In particular, from 2013 to 2017, the size of China's coffee shop market almost doubled, with a compound annual growth rate of 18%. It is expected that the market size will reach US$7.5 billion in 2020.

Currently, the Chinese coffee market is on the eve of an explosion. The Chinese market is still not fully saturated and has not entered a highly competitive market. The Chinese market is large enough to accommodate the coexistence of brands of various levels. Anyone who comes in and does a good job can enjoy this round of dividends.

So, how should China exert its strength in this "competition" for dividends?

China's coffee mainly comes from Yunnan, and Yunnan coffee, as a single product or blended beans, is comparable to most foreign coffees. However, in the terminal market, most coffee shops and coffee lovers are always proud to use imported coffee beans, even though most imported coffee beans are difficult to distinguish between true and false, and the quality varies.

Because of this, Yunnan coffee is sold in the form of raw beans to Nestlé and some large foreign coffee bean traders every year. Most of the coffee flows into China again after many twists and turns, but it is no longer "domestic coffee" but "imported coffee"!

Therefore, it is possible that many of the imported coffees you buy are actually domestically produced... This is a very sad thing for both growers and consumers!

Facts show that the lack of deep processing, brand, scale and market are the four major bottlenecks hindering the development of Yunnan's coffee industry.

To develop the industry, we must promote the scale of coffee planting in Yunnan and introduce high-level scientific researchers to guide the development of the coffee industry. We must change the traditional planting methods of small farmers, establish large-scale planting bases, and carry out large-scale planting to develop modern agriculture.

We must increase technology investment and improve the level of deep processing . If coffee is to achieve industrial development, it cannot do without deep processing. We must break away from traditional processing techniques, achieve the differentiation of coffee products, and highlight the diversified value of local coffee. We must continue to innovate technology, improve the level of deep processing of coffee in China, develop new coffee varieties, and bring them to the market to meet the consumption needs of different consumers.

Building a brand Yunnan coffee faces not only the local market, nor the domestic market, but also the world market. If it wants to highlight its own characteristics in the world market, it must have its own brand and well-known enterprises. Focusing on the development of local leading coffee enterprises, playing a role in demonstrating and driving the development of enterprises, paying attention to the improvement of product quality, increasing the popularity of local coffee, and letting more people know about Yunnan coffee and its own brand is now the top priority.

Therefore, if Yunnan coffee, which represents the Chinese coffee industry, wants to gain a place in this bonus "competition", it must be aware of the existing problems in the current industrial development and break free from these limitations before it can promote Yunnan coffee and Chinese coffee to the world.

Editor/Responsible Editor: Kang Xuanshan