Blue Book of Coffee consumption in China: take-out has become a new trend in buying coffee

Professional coffee knowledge exchange more coffee bean information please follow the coffee workshop (Wechat official account cafe_style)

Guide reading

At present, the domestic coffee market is in the stage of rapid development, and the consumer population is also growing rapidly. According to the forward-looking Industrial Research Institute, China's coffee consumption market was about 70 billion yuan in 2015, accounting for about 0.5% of the global market. The annual growth rate of coffee consumption in China is about 15%. It is estimated that the sales scale of China's coffee market will reach 300 billion yuan in 2020 and is expected to break through the 1 trillion yuan mark in 2025. According to the Investment Analysis and Prospect Forecast report of China's Coffee Industry from 2017 to 2021, China's coffee consumption is growing at an annual rate of 15% and 20%, and the average growth rate of coffee consumption in the global market is only 2%. Although the domestic coffee market is growing rapidly and has huge room for growth, compared with developed countries in Europe and the United States, coffee consumption in China is still in its infancy. According to the data, the average amount of coffee consumed per capita is 1200 cups per person per year in Finland, 180 cups per person per year in Japan and South Korea, and only 6 cups per person per year in the Chinese mainland region.

What new consumption habits have been formed in the domestic coffee consumption market? What are the new trends facing the development of the domestic coffee industry? To this end, Koda Digital 100Co., together with the Health Times, jointly created the "Blue Book of Coffee consumption in China from 2018 to 2019" and carried out specific research on the current development of the domestic coffee market.

The survey results show that the main group of coffee consumption in China's first-and second-tier cities is the young group, of which women account for nearly 60% of the consumer group, and the consumer population will tend to be younger. In addition, the current domestic coffee consumption demand is mainly functional demand and social demand, 83% of the respondents said that the coffee stay in the functional demand, while 37% of the respondents want to use coffee for leisure and social needs.

The survey results show that the main group of coffee consumption in China's first-and second-tier cities is the young group, of which women account for nearly 60% of the consumer group, and the consumer population will tend to be younger. In addition, the current domestic coffee consumption demand is mainly functional demand and social demand, 83% of the respondents said that the coffee stay in the functional demand, while 37% of the respondents want to use coffee for leisure and social needs.

At present, the scene of domestic coffee consumption shows a diversified development trend, in which office (74%), home (65%) and leisure and entertainment scenes (64%) are the mainstream scenes for domestic coffee consumers to drink coffee. At the same time, in learning, business travel and other scenes, coffee consumption is also gradually infiltrating. In terms of perception of the quality and price of coffee, consumers generally believe that a cup of coffee with guaranteed quality and a relatively lower price will be more competitive in the market, while for a cup of coffee with good quality and taste, the price range that consumers can accept is between 16 and 35 yuan.

From the current development trend of China's coffee industry, traditional store coffee and instant coffee are still the mainstream forms of domestic coffee consumption market, the re-drinking rate is more than 60%, and the consumer group is relatively stable. At the same time, the new retail coffee has emerged as a new force in recent years, while providing consumers with both quality, cost-effective and convenient coffee products, the market share has also been rapidly expanded, representing the current new trend of the development of the domestic coffee industry.

With the help of digital 100 "research cloud platform", a total of 10005 valid samples were collected. The subjects were coffee drinkers over 20 years old and those who did not drink coffee but did not exclude coffee. The geographical scope focused on 20 first-tier and new first-tier cities such as Shanghai, Beijing, Guangzhou, Shenzhen, Chongqing, Tianjin and Suzhou.

1. Composition and Age Distribution of Coffee consumers in China

Data show that women account for nearly 60% of coffee consumers in first-and second-tier cities in China, and the proportion of potential coffee consumers is about the same. In terms of age distribution, post-85s (30-34 years old) and post-90s (20-29 years old) are the main groups of domestic coffee consumption; among potential coffee consumers, 20-24 years old and 25-29 years old account for 35% and 31% respectively. Young people in our country like to try new things and will be the main force of domestic coffee consumption in the future.

In terms of education, coffee consumers in China are mainly dominated by highly educated consumers, of which nearly 90% of consumers have a college degree or above. From the perspective of occupational composition, the distribution of existing coffee consumers is mainly in the financial industry, specialized service industry, advertising / media industry, real estate industry, and the Internet / IT industry and other industries with more work intensity and more overtime, of which white-collar workers account for the highest proportion, accounting for 44% of the total number of respondents. In addition to the above factors, according to the survey results, the current coffee consumers in China show the characteristics of high income, with an average annual income of 183000, which is higher than the average annual wage of 77000 yuan in 20 surveyed cities.

Finally, through the analysis of potential consumers, the average annual income of domestic potential coffee consumers is 125000, which is closer to the social average. The low level of personal income and the relatively high pricing of coffee may be the reasons that affect consumers' coffee consumption.

two。 Consumption habits and characteristics of Coffee consumers in China

As mentioned earlier, the motivation of domestic coffee consumers to drink coffee generally stays in functional and social needs, mainly focused on the use of coffee to refresh the mind, eliminate fatigue (83%) and relax, relieve stress (68%), leisure and social interaction (37%). Overall, the current domestic consumers' nutritional awareness of coffee consumption is weak, the proportion of people who drink coffee out of health needs is relatively low, and 13% of consumers still regard drinking coffee as a sign of personal taste.

Relatively speaking, at present, only 18% of domestic coffee consumers regard drinking coffee as a living habit. This result indicates that there is a large increase in the number of people and per capita cups in the domestic coffee market in the future.

From the perspective of drinking frequency, domestic consumers mostly drink coffee 3-6 cups a week and more than 1 cup a day, accounting for 42% and 33% respectively. Compared with people over 25 years old, the coffee consumption habits of young people born in 1995 (20-24 years old) still need to be cultivated, and the frequency of coffee consumption has more room for increase. Among the existing consumers in China, 22% and 37% respectively drink coffee at breakfast and after breakfast, while the proportion of consumers who drink coffee in the afternoon is relatively high, reaching 61%.

At present, the domestic coffee consumption scene shows a diversified development trend, in addition to the traditional offline coffee store consumption, offices, families, and leisure and entertainment places have become the main coffee consumption scenes. At the same time, in learning, business travel and other scenes, coffee consumption is also gradually infiltrating.

Among the coffee categories on the market, latte is the most popular coffee flavor among domestic consumers (73%), while cappuccino ranks second (65%). At the same time, drinking coffee with dessert (63%) or light food (43%) has become an inherent habit of more than half of coffee consumers.

The survey results of consumers' awareness of freshly ground coffee brands show that Starbucks entered the Chinese market earlier and is currently the largest chain coffee brand in China, and its brand recognition and drinking rate are ahead of other freshly ground coffee brands. According to the current consumption rate, Luckin Coffee, a new retail coffee brand that has been established for more than a year, ranks second among professional chain coffee brands.

On the whole, domestic consumers have a high overall preference for coffee. 85% of consumers say they like coffee, and nearly half of them like coffee very much. Among existing coffee consumers, 65% of coffee consumers said they would consider increasing the frequency of coffee consumption. From the perspective of the incremental market, China's coffee consumption market will maintain a high growth rate for a long time, with an annual compound growth rate of about 8.3%. It is estimated that the scale of China's coffee consumption market will reach 300 billion yuan in 2020.

For those who do not drink coffee and those who may consider reducing the frequency of coffee consumption, the survey shows that, in addition to their own factors, high price and inconvenience are the main factors affecting coffee consumption.

3. Chinese consumers' Cognitive attitude towards Coffee consumption

Existing consumers have the highest requirements for quality when choosing a cup of coffee. For a cup of coffee with good quality and taste, the price range that consumers can accept is between 16 and 35 yuan; the price range acceptable to potential consumers is relatively lower. Nearly half choose less than 25 yuan, of which 16-25 yuan is the highest, up to 36%.

The survey shows that domestic consumers have generally formed the perception of coffee price ceiling, and products below the cognitive price ceiling will greatly touch users' buying behavior. Domestic coffee consumers are very willing to try new coffee brands, among which 41% of coffee consumers are willing to try it the first time. Relatively speaking, high-frequency drinkers are more willing to try new brands.

For new coffee brands entering the market, quality, performance-to-price ratio and convenience are the most concerned factors for consumers, so on the basis of ensuring quality and taste, if we can achieve a higher performance-to-price ratio in pricing, it will attract more consumers in the market.

4. Forecast of Coffee consumption trend in China

The survey shows that coffee consumers in China are getting younger. In the portrait statistics of coffee users, consumers between the ages of 20 and 35 contribute nearly 80% of their coffee consumption. According to the report on the living conditions of China Cafe in 2017, the post-80s and post-90s generation exceeded 400 million in 2016, and the number of the middle class dominated by young people exceeded 100 million, and will exceed 250 million by 2030. As more and more young people pay attention to coffee and the demand for coffee is growing, it means that there is great potential for the rise of China's coffee consumption market in the future.

At present, China's coffee market is mainly divided into four formats: 1. Instant coffee (Nestle) 2. Traditional store coffee (Starbucks, COSTA) 3. Shangchao Coffee (McCoffee, 7-11) 4. New retail coffee (Luckin Coffee); among them, the market proportion of traditional store coffee and instant coffee is the highest, and the consumer population is relatively stable at this stage, which will remain the mainstream format of the domestic coffee market in the short term. With the upgrading of consumption, the freshly ground coffee market, which is based on store, new retail and commercial super coffee, will be further expanded. Among them, the emergence of new retail coffee format has opened up a new mode of coffee consumption for consumers, and its re-drinking rate has exceeded that of Shangchao coffee in a short period of time, and the market has broad potential for development.

Overall, 82% of domestic coffee consumers are willing to try new retail coffee, and 43% of them want to try it very much. The survey found that consumers who drank coffee more frequently were more willing to try new retail coffee.

By comparing the four formats of coffee market, it is found that consumers' demand for coffee quality is increasing, and the products with lower prices are more competitive under the same quality.

The convenience of instant coffee is obvious to all, but limited by the production process of the product itself, there is a great deficiency in quality; the advantage of traditional store coffee lies in good quality and good store experience, while the disadvantage lies in high price and inconvenient purchase; Shang Chao coffee gives freshly ground coffee convenience and economy, but there is still a big gap with traditional store coffee in terms of quality, production technology and taste. The new retail coffee further improves the performance-to-price ratio and convenience of freshly ground coffee, breaks the shackles of the physical space of traditional coffee shops with the help of the Internet, meets the coffee consumption needs of users in multiple scenarios, and at the same time has both quality. relatively speaking, the advantages in all aspects are relatively balanced.

With the gradual growth of the domestic coffee market, consumers are no longer satisfied with the supply of coffee products from traditional chain coffee brands. Under the same quality, products with lower prices and more convenience are more competitive.

In terms of purchase mode, take-out has become a new trend for domestic coffee consumers to buy coffee. They are more willing to try to buy online and offline. More than half of the consumers mainly buy coffee by take-away, followed by restaurant food (38%), while only 11% of consumers buy coffee through takeout alone. 78% of consumers are interested in buying coffee online and offline, and 40% of them are very willing to try.

With the popularity of new retail and Internet consumption, more and more consumers begin to learn about coffee brands and buy coffee through APP or Mini Program. The survey shows that 63% of coffee consumers buy coffee through APP or WeChat Mini Programs, and more than 90% of them use it every week. The top three Mini Program orders were Luckin Coffee (89 per cent), Lian Coffee (31 per cent) and Starbucks APP (12 per cent).

END