The scale trend of Chinese Coffee Market in 2023 the present situation and Prospect of domestic Coffee Industry

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In the past 21 years, the development of the domestic coffee market has undergone great changes, coffee from unfamiliar to today's daily life, China's coffee market only 10 years, so that the overall scale of rapid development.

According to the reality of multi-agency statistics, the market has an average annual growth rate of 29.54% between 2013 and 2018; by 2021, the Chinese coffee market will grow 31% year on year. The compound annual growth rate (CAGR) from 2022 to 2025 will reach 9.63%.

The latest data from the analysis of the global coffee market shows that the size of China's coffee market will reach 180 billion yuan in 2023 and 1 trillion yuan by 2025.

The main reason for such rapid development is the intensification of competition in the coffee industry and the accelerated expansion of chain brands. Then there is the rise of Mini Program and live streaming, and the rapid increase in coffee drinking habits among young consumers.

/ accelerated expansion of chain brands

Since the outbreak of the epidemic, the pressure on everyone's life and work has also increased. In order to refresh the mind, people's demand for coffee is also increasing. At the same time, with the spread of boutique coffee culture, some analysts predict that the proportion of freshly ground coffee in China's coffee market will rise to more than 51% in 2023, while the proportion of instant coffee will drop to less than 40%.

It is not difficult to see that China's freshly ground coffee is a very typical consumption upgrading market, and the prospect of future growth is very considerable. From the point of view of the growth rate of the industry, ground coffee is also a fast-growing track.

Market analysis shows that in the next five years, the compound growth rate of global currently ground coffee consumption will be 5.7%, while the compound growth rate of China's current ground coffee consumption can be as high as 24.6%. Such rapid growth provides chain companies in the coffee industry with a very high room for fault tolerance and opportunities for corner overtaking.

At the same time, in recent years, many people working in big cities have moved to other small cities, driving the demand for coffee in third -, fourth-and fifth-tier cities. Therefore, during the year, the major chain coffee brands have focused on developing the sinking market and accelerating the expansion of stores, striving for more new sources of customers.

According to the statistics of narrow door Dinner Eye, the three brands with the largest number of stores to open in 2022 are Luckin Coffee (2939 new), Lucky Cafe (1521) and McCoffee (763). Up to now, the brands with the largest number of stores in China are Luckin Coffee (8171), Starbucks (6882) and McCoffee (2530).

/ Mini Program, the rise of live streaming

Live broadcast and online shopping are developing rapidly in China, which undoubtedly brings great help to the coffee market. With the vigorous development of the live broadcast market in China, more and more consumers choose to buy products through these channels, and have developed the demand for online orders, product preferences and ease of operation.

Live broadcast allows many coffee brands to show to consumers across the country how to use coffee equipment, coffee bean characteristics, coffee brewing experience sharing, through live interactive exchanges to enhance consumers' attention to coffee, coffee understanding people, at the same time, combined with the discount and convenience of placing orders online, gradually infiltrate coffee into the home market (that is, buying coffee by yourself).

In terms of retail, Mini Program provides consumers with another choice in addition to traditional markets and e-commerce. At present, coffee consumers are mainly between 23 and 40 years old, and consumers in this age group pay more attention to speed and convenience, so the demand for mobile applications is very huge.

The birth of Mini Program has played a role in mini-commerce. Mini Program combines social media and e-commerce platforms to provide consumers with options other than traditional markets and e-commerce. Consumers can not only place orders for their own products in advance and reduce the waiting time for products. It can also help merchants to provide products to consumers faster, but also effectively reduce the operating costs of stores, so that there is more room for product prices.

The coffee drinking habits of young consumers are increasing rapidly.

The rapid expansion of coffee chain + e-commerce live broadcast drive + Mini Program in retail support, young consumers' coffee drinking habits are increasing rapidly. Compared with countries with strong coffee culture, China's coffee market is still in its infancy, which means there is still a lot of room for expansion.

According to the data, there are three main reasons why Chinese consumers drink coffee: refreshing (53.1%), like the taste of coffee (53.2%) and enjoy the atmosphere and service of coffee shops (31.3%). On the other hand, the single consumption range of Chinese consumers in coffee shops is concentrated in 10-40 yuan, with a maximum of 15-25 yuan.

According to the Chinese coffee market is still in its infancy, which means there is still a lot of room for expansion. According to recent data, coffee consumers pursue product quality, and individual consumer prices fall in the middle price range, indicating that consumers are more willing to buy cost-effective coffee products.

The above-mentioned chain brands, live streaming, and Mini Program issuing orders are the key factors in providing cost-effective coffee products and the key to enabling more consumers to develop coffee drinking habits.

Judging from the current situation, millennials (post-00s) and generation Z (under 40) consumers are dominant. The post-00 generation needs innovation, novelty and convenience, and the Z era needs experience, stability and convenience.

Therefore, the next development of the coffee market will pay more attention to the needs of millennials and generation Z consumers, while increasing the social nature of coffee, introducing more portable, ready-to-drink products, and increasing the import of coffee beans.

Photo Source: Internet