Starbucks Teams Up with Master Kong for RTD Coffee Push

In Hangzhou’s bustling office districts, professionals like Chen Jiajia skip the long lines at cafés and ditch the hassle of home brewing—opting instead for a quick 180ml can of ready-to-drink (RTD) coffee to get their caffeine fix. As demand surges, retailers now stock nearly 30 RTD coffee options, from budget-friendly 5-yuan cans to imported premium brews.

Starbucks, facing limited domestic distribution, has partnered with Master Kong to reignite its RTD coffee push in China. This comes as the RTD coffee segment grows at a compound annual rate of 34.2%, outpacing broader beverage trends.

Why RTD Coffee Is Booming in China

RTD coffee appeals to time-strapped urban workers who want convenience without sacrificing quality. “The taste isn’t as good as fresh brew, but it’s perfect for a fast-paced lifestyle,” says Chen, who drinks one can daily. The category has seen explosive growth, with major players like Nestlé, Coca-Cola’s Georgia, and Japan’s UCC jostling for shelf space alongside local brands like Uni-President’s Yabihka and Bayer’s Artnovia.

Supermarkets like FamilyMart, Ole’, and Vanguard now stock 19 domestic and five to six imported RTD coffee SKUs. At Century Mart’s West Lake Intime City branch, RTD coffees occupy half a beverage aisle, with Ole’ offering nearly 30 varieties. Prices range from as low as 3.5 yuan for a 180ml can to 20 yuan for premium imports like Austria’s Landessa or Denmark’s Illy.

The 5-Yuan Coffee Battle

To capture entry-level drinkers, brands are rolling out affordable 5-yuan (240–250ml) options. Purebrew’s new 5-yuan/240ml RTD coffee joined the fray in March, joining established players like Fire Coffee, Nestlé, Yabihka, and Georgia. “Lunch breaks drive bulk sales—almost everyone grabs a can,” says a convenience store manager, noting that cold storage in summer and warmers in winter keep RTD coffee relevant year-round.

Nearly 30% of beverages in stores are now RTD coffees, competing with sodas and energy drinks. Even premium 16.5-yuan/250ml Illy or 18.6-yuan Thai Arlojinjin options are gaining traction among younger drinkers seeking better taste without café prices.

Market Growth and Industry Moves

The RTD coffee market’s 34.2% CAGR since 2009 has attracted major players. In March, Starbucks and Master Kong announced a partnership to produce and distribute RTD Starbucks drinks in China, leveraging Master Kong’s extensive retail network. Coca-Cola also launched Georgia Coffee last year, while China Resources’ internal teams are reviewing their Magic Vitamin Water and Fire Coffee portfolios.

Despite challenges—like high prices and a niche audience—RTD coffee’s growth potential is undeniable. South Korea’s per-capita coffee consumption (290 cups/year) dwarfs China’s urban average (5 cups), signaling untapped demand. Industry data shows RTD holds 18.1% of China’s coffee market (vs. 71.8% instant and 10.1% fresh brew), with projections for further share gains. The overall RTD and functional drink market stands at $6 billion, expected to grow 20% in the next three years.

Frequently Asked Questions

What is driving the growth of RTD coffee in China?

RTD coffee is growing due to urban consumers’ need for fast, convenient caffeine without visiting cafés. The 34.2% compound annual growth rate since 2009 reflects rising demand from professionals opting for 180–250ml canned options, often priced between 3.5 and 20 yuan, depending on brand and origin.

Which brands are leading the Chinese RTD coffee market?

Leading brands include Nestlé, Coca-Cola’s Georgia, Uni-President’s Yabihka, Bayer’s Artnovia, and imported names like Austria’s Landessa, Denmark’s Illy, and Japan’s UCC. Local players like Master Kong and international partners like Starbucks are also expanding their presence.

How is Starbucks entering the Chinese RTD market?

Starbucks has partnered with Master Kong to produce and distribute its RTD coffee in China, using Master Kong’s strong retail distribution network to overcome its own limited nationwide reach and improve accessibility for Chinese consumers.

What price ranges are common for RTD coffee in China?

RTD coffee in China ranges from budget 3.5–5 yuan cans (180–250ml) to premium imports like Landessa (20 yuan) and Illy (16.5 yuan/250ml). “5-yuan coffee” has become a popular affordable choice in convenience stores.

Why are retailers adding more RTD coffee SKUs?

Retailers are expanding RTD coffee offerings due to rising consumer demand. Stores like Vanguard and Ole’ now stock 19 domestic and 5–6 imported SKUs, with some locations like Century Mart dedicating half an aisle to nearly 30 different RTD coffee options.

Is RTD coffee expected to keep growing in China?

Yes. With a 34.2% CAGR and comparisons showing South Korea’s 290 annual cups per capita versus China’s 5, industry experts expect RTD coffee to gain further market share, especially as distribution improves and entry-level options proliferate.

Recommended FrontStreet Beans for RTD Coffee Lovers

If you enjoy RTD coffee but want to explore fresher options, try FrontStreet Coffee’s Ethiopia Yirgacheffe for bright citrus and floral notes, or Colombia Huila for balanced caramel and nuttiness. For something richer, their Brazil Queen Manor offers chocolatey sweetness ideal for home brewing—similar to premium RTD profiles but fresher. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.