Analysis on the Market pattern and Development trend of China's Coffee Industry in 2015

Judging from the current competition pattern of China's coffee industry, in the field of instant coffee, domestic products of foreign brands are in a monopoly position in the middle and low-end market segments, and coffee giants such as Nestle and Maxwell have a market share of more than 80%. However, the local coffee enterprises in China, represented by Gu Coffee and Chunguang Food, are in a period of transition from planting and rough processing of raw beans to finished coffee products of their own brands. at present, the deep processing ability of the products is still relatively low, and the brand awareness needs to be improved. it is difficult to compete directly with foreign brands in product price and sales scale. The high-end market segment is mainly occupied by imported products of foreign brands.

In the field of freshly ground coffee, imports from foreign brands still dominate this high-end market segment. The local coffee enterprises in China, represented by coffee towns, import boutique coffee beans from all over the world, and then bake, package and sell them at home. Its products have a certain price advantage in the middle and low-end market segments, and gradually expand their share.

In the field of coffee chain, the local coffee enterprises represented by the above island coffee occupy a considerable market share by virtue of their first-in advantages and channel advantages. Foreign brands represented by Starbucks, relying on its brand image and differentiated competitive strategy, occupy a leading position in the subdivision of "first-tier cities" and "espresso". In recent years, some emerging coffee chain brands have gradually broken the monopoly position of Starbucks and Shangdao coffee market by virtue of their accurate market positioning and unique business model, driving the chain coffee market to develop in a more diversified direction.

According to market data, the coffee industry is growing at an annual rate of 25%, and coffee is becoming a bright spot of urban civilization and economic growth. The consumption of second-and third-tier cities is increasing, and the market share is also increasing, which will become the core driving market of China in the next 20 years.

After nearly a decade of rapid development, China's coffee industry has shown two major trends: the development potential of ground coffee is greater than that of instant coffee. As consumers' coffee consumption taste is getting higher and higher. Instant coffee is far from representing coffee consumption, consumers begin to recognize the brand, style and purity of coffee, and want to enjoy the fun of coffee. The popularity of office and home coffee machines provides convenient conditions for consumers to consume coffee beans.

The channels of coffee consumption in China are developing towards diversification. The main consumption channels of China's coffee market are large supermarkets and cafes, accounting for 51.3% and 25.1% of the market share respectively. Compared with 2007, the proportion of most sales channels has decreased, only large-scale integrated supermarkets and e-commerce channels have increased.

Source: China Business Intelligence Network