In the next decade, China will become one of the countries with the largest coffee sales in the world.

Beverage "boss" deeply ploughed coffee and functional drinks

Nestl é's massive destruction of instant coffee has not stopped beverage companies from being enthusiastic about the coffee market. Starbucks, Master Kang and China Resources Yibao have said they will dig deep into the coffee and energy drinks market. Industry observers believe that Chinese consumers are changing and the growth rate of instant coffee is slowing, but instant coffee is popular.

It is understood that China's ready-to-drink coffee and energy drinks market is worth US $6 billion and is expected to grow by a further 20 per cent over the next three years, according to industry analysts at Shangpu Consulting. China is Starbucks' fastest-growing market outside the United States. Starbucks has more than 1500 stores in China. Apart from the rapid expansion of its stores, Starbucks obviously does not want to miss out on China's fast-growing ready-to-drink coffee market. The choice of "alliance" with Master Kang values its strong production and distribution capabilities. Under the agreement, Starbucks will be responsible for product development and innovation as well as brand development, while Kang Shifu will be responsible for the production and sale of Chinese mainland ready-to-drink beverage products.

Starbucks officials said that Starbucks bottled Frappuccino drinks currently on sale in China are made abroad and sold through domestic distributors. Through this cooperation, Starbucks and Master Kang plan to produce and market Starbucks bottled Frappuccino drinks with existing and new flavors in China in 2016, after which they will launch more innovative products. Starbucks ready-to-drink products will be promoted to more sales outlets and cities.

It is reported that at present, more than 50% of the market share of the domestic ready-to-drink coffee market is occupied by Nestl é, followed by Yaha of Uni-President, and Coca-Cola Qiaoya, which joined the market competition last year, is also gaining momentum. However, it can be predicted that with Starbucks brand strength and Kang Shifu's production and sales capacity, this product is bound to bring a lot of competitive pressure on existing products, but also shake up the existing market pattern.

The coffee market is growing explosively and the demand for coffee machines is also rising.

It can be seen that there is a great demand in China's coffee market, and the world-class beverage giants are also very optimistic about China's coffee market. Indeed, after entering the 21st century, with the rapid development of China's economy, people's quality of life is constantly improving, drinks are becoming increasingly diversified, and the habit of drinking coffee has gradually become a fashion among Chinese people. Statistics show that more than 8 million tons of coffee beans are sold worldwide every year, of which China accounts for about 1x20 of the market sales. Some analysts pointed out that China's coffee consumption will continue to grow at an annual rate of 15% to 20%, and China will become one of the countries with the largest coffee sales in the world in the next decade. By 2030, China's coffee consumption market is expected to reach 20, 000-3 trillion yuan, and the coffee industry will become a new fertile ground for investment.

According to the Research report on the Forecast and Investment Strategy of China's Coffee Industry from 2015 to 2020 released by Shangpu Consulting Industry Investment decision Network (www.cu-market.com.cn Wechat: spzx-bj), the kitchen appliance income will grow at an excellent rate in the next three years, and the small household appliance industry will continue to recover. The kitchen and sanitary appliances market will maintain an average annual compound growth rate of about 10%, which is at least 5 percentage points higher than that of the overall household electrical appliances market in the same period. at this stage, the number of household kitchen and sanitary appliances in China is low, and 75% of the current kitchen and sanitary appliances are new demand. the replacement demand only accounts for about 25%. Therefore, the western-style household appliances represented by coffee bean roaster are expected to have great potential for growth in the future.

China's coffee machine sales market is more concentrated, mainly concentrated in the Yangtze River Delta, Beijing and Tianjin, Shenzhen radiation in Hong Kong, followed by Wuhan, Dalian, Qingdao and other port cities. And the current popularity of domestic coffee is not high, compared with Japan's average of three cups of coffee a day, China's urban population is only three cups a year. However, China has a huge population base, and with the continuous rise of coffee culture in China, as well as the accelerated pace of life and changes in eating habits, the potential of the coffee machine market will be gradually released.

Source: Shangpu Viewpoint

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