Analysis and Thinking of Coffee Market in China

1. The capacity of Chinese coffee market

In 2012, China's current coffee consumption is about 80 billion yuan, and the world coffee market in 2012 is less than 12 trillion yuan, slightly lower than in 2011.

China's coffee consumption market has experienced rapid growth in the past 10 years, and the annual market growth rate is more than 15%, which is rare in the world, while the international developed country market is growing at an annual rate of only 2-3%.

Relevant experts predict that by 2020, China's coffee consumption market is expected to reach 1 trillion yuan. By 2030, China's coffee consumption market may reach 2-3 trillion yuan. The mature Chinese coffee consumption market should be 3-4 trillion yuan.

2. End-consumer analysis

The main consumer groups: or mainly concentrated in the young and middle-aged people, compared with the coffee population consumption analysis in previous years, the proportion of the population has changed, mainly business people and coffee lovers have increased faster. In particular, the number of people who regard coffee as a consumption habit has been greatly improved, and the consumption fashion of coffee has quietly declined. Consumers over 35 years old have higher brand loyalty to coffee. At the same time, coffee consumption is also developing towards younger age and family.

Consumer psychology:

Coffee is a symbol of taste.

As an imported drink, coffee is not only a drink, but also a symbol of taste to a greater extent. By drinking coffee, you can understand the cultural spirit of coffee (especially in cafes).

The refreshing effect of coffee.

Coffee contains caffeine, which can stimulate the central nervous system or muscles, which is also a major factor to attract people to consume.

Consumption of coffee in a cafe is a symbol of the emerging urban class:

At the present stage in China, cafes springing up in Beijing, Shanghai, Guangzhou and other metropolises are more of a symbol of westernized life and the new urban class. Drinking coffee in cafes is gradually associated with fashion and modern life.

N consumption mode:

L instant coffee:

About 55% of the coffee currently consumed in China is instant coffee, mainly for fast, simple and convenient brewing.

L freshly ground coffee:

People who have higher requirements for coffee will use coffee beans, coffee powder and coffee machines to make their own coffee.

L Cafe consumption:

Coffee shop consumption is mainly for people who have higher requirements for coffee, or people who spend money in coffee shops because of work needs. Mainly concentrated in white-collar workers, foreigners and people who have lived abroad, the speed of development is relatively fast.

L change in consumption patterns:

At present, more and more people are demanding coffee, and more and more people are accustomed to spending in cafes, so more and more people are spending in cafes.

3. Sales channel analysis

Traditional distribution channels:

This is the most important sales channel of coffee, which is similar to fast consumer goods such as beverages and milk, mainly through mass channels such as stores, supermarkets, department stores and convenience stores. Compared with other fast consumer products, coffee lacks the channel of coffee stores.

Mass sales channels, especially large supermarkets, shopping malls and department stores, have become the mainstream.

Coffee Shop

These are mainly coffee chains such as Starbucks, Costa, Pacific, West Island, Shangdao Coffee and McDonald's (McCoffee).

Online store

At present, many manufacturers have set up stores in the main e-commerce platforms, or distribution, or direct sales, to increase the Internet e-commerce sales channel. Such as Nestl é in Taobao Mall, JD.com Mall, Dangdang, Amazon and other e-commerce platforms for sales. The biggest highlight of the coffee industry in 2012 is the 300% increase in online sales of a series of products in the coffee industry.

II. Major brands of coffee

1. Major brands

Instant Coffee

The instant coffee market is mainly foreign brands:

Internationally well-known, common domestic brands:

① Nestl é: the inventor of instant coffee, the world's largest instant coffee company, China's instant coffee market share of about 80%. The quality is very good and the price is relatively low.

② Maxwell (including Maxwell Collection): the second largest instant coffee brand in the world and the second largest instant coffee market share in China, with high quality but high price.

③ Klass: German brands are popular in Europe and Russia, but they are rare in China. The world's earliest use of vacuum package method to develop instant coffee, characterized by: with a slightly fresh sweet taste, sour taste and rich flavor.

④ UCC: a famous Japanese brand, with coffee beans carefully cultivated and planted as raw materials, it has its own farm and has the advantage of raw materials. The coffee taste is authentic and mellow, with a high standard, and the coffee packaging design is very exquisite, which is mainly common in first-tier cities in China.

⑤ Colombia: coffee is of higher quality than other brands. The coffee has a silky taste, the best balance, and a soft, smooth taste. But there are few domestic sales channels.

⑥ Starbucks VIA instant coffee: produced by Starbucks, sold only in Starbucks coffee shops. The taste is better, but the price is more expensive.

In addition, there are some brands with few domestic sales outlets but high international awareness:

① Grant: famous brands in Germany, rarely seen in China, the most famous is cappuccino.

② coffee: Singapore brand, taste very good, the price is low, rarely seen in China.

③ Jie Rong Coffee: Hong Kong brands, mainly pure instant coffee and three-in-one coffee, but there are many varieties and flavors of coffee, less in the mainland, Watsons has sales.

N coffee chain

① Starbucks

② McCoffee

③ Shangdao Coffee:

④ Pacific Coffee

⑤ Xidi Island Coffee

⑥ carving time Coffee

⑦ Personality themed Cafe

⑧ many local brands of coffee

Third, the changing trend of coffee market

1. Analysis of the changing trend of coffee product market.

Office and home coffee consumption will exceed the proportion of instant coffee in the overall channel.

Office and home coffee consumption is the fastest growing coffee consumption channel in recent years, the main reasons are: the improvement of people's living standards, the promotion of young and middle-aged consumers, the popularity of office and household coffee machines. It is expected to become the second largest consumption channel after instant coffee in 2020, and even surpass instant coffee to become the largest coffee consumption channel in 2015.

The consumption market of cafes is growing significantly.

With the improvement of China's economic development and the growth of people's income, people have higher and higher requirements for coffee consumption, and people are more and more used to spending in cafes in the future.

Star hotels, self-help places, clubhouses and high-end Chinese restaurants have become new growth points of coffee consumption.

The consumption of coffee in second-and third-tier cities is increasing, and the market share is also increasing. Become the core of Chinese coffee market and the next 10 years to promote the market.

2. There is a lot of room for the development of coffee consumption market.

The scale of coffee consumption market is expanding rapidly.

China's coffee consumption market is currently growing at an annual rate of 15%. At present, there is only a market of 80 billion yuan, and the mature coffee consumption market is expected to reach a capacity of 300 million yuan to 400 million yuan. Therefore, China's coffee consumption market is expanding rapidly. according to the fact that various coffee industry giants have entered the Chinese market this year, other Chinese markets have been regulated, and a large number of Chinese state-owned capital and private capital have poured into the coffee industry, which can be expected to begin in 2014. The blowout development of China's coffee industry is coming.

The market potential of instant coffee is great.

At the same time, 55% of China's coffee consumption market is instant coffee. According to the UK coffee market, 80% of coffee consumption is instant coffee, so the market potential of instant coffee in China is huge.

At present, the coffee market is dominated by foreign brands, and we need to continue to build domestic well-known brands.

At present, the instant coffee market and chain coffee shops are dominated by foreign brands, but there are no well-known domestic coffee brands, and consumers are eager for the emergence of domestic coffee brands, so there is a great market opportunity.

Thinking: behind the rapid development of the coffee industry, we have seen the problems faced by the coffee industry itself:

First, the formulation and implementation of the national standard of China's coffee industry seriously lags behind, there is no standard management, there is no basis, not in line with market rules. As a result, there is a multi-head management or vacuum zone in the management of the coffee industry, which directly affects the cooperation and exchanges of Chinese coffee enterprises to participate in the international coffee industry.

Second, at present, the Chinese coffee industry market is mixed, it is difficult to tell the true from the false, and there are many factions in the door, so they do not buy each other. Lack of national unified industry association coordination, especially the coffee shop to join the market brand Li Jiu Li Gui struggle, the coffee bean market has appeared the status quo of bad beans driving out good beans. These will have a direct impact on consumer confidence.

Third, Chinese coffee industry talents lack of systematic and standard training and certification system, and there is a serious talent gap from low to high.

Fourth, the international coffee industry giants squeeze and encroach on the Chinese coffee industry market, as well as the penetration and control of the coffee industry chain to achieve the goal of monopoly. China's coffee industry needs to appear industry brand enterprises to participate in the competition.

At present, there is a lack of professional and systematic industrial research institutions in China's coffee industry. Especially from planting to beans, from beans to cups, from cups to mouths to consumers' brand awareness.