China’s Coffee Market Growth: 1998–2015 Trends

In 1998, China barely registered on the global coffee map — just 19.9 thousand 60kg bags consumed. But by 2012, that number had jumped to 110 thousand bags. What changed? Urbanization, income, and shifting tastes transformed the market, creating one of the fastest-growing coffee sectors in the world.

Quick answer: Between 1998 and 2012, China’s coffee consumption grew at a compound annual rate of 12.8%, climbing from 19.9k to 110k 60kg bags. Per capita intake rose from 9.6g to 47.6g — about 4 cups per person yearly by 2012, with big cities like Beijing, Shanghai, and Guangzhou averaging 20 cups.

How China’s Coffee Drinking Evolved (1998–2012)

From 1998 to 2012, China’s coffee consumption surged from 19.9 thousand 60kg bags to 110 thousand bags — an annual growth rate of approximately 12.8%. With a population of around 1.3 billion, per capita coffee consumption increased from 9.6 grams to 47.6 grams per year, growing at an average rate of about 12.1% annually. At that pace, projections suggested consumption could reach 280 thousand bags by 2020.

Drink Type Breakdown: Then and Now

As of the early 2010s, the Chinese coffee market was dominated by instant coffee, which held an 84% market share. Freshly brewed (i.e., ground bean) coffee made up just 16%. Although instant remained the largest segment, its growth lagged behind fresh coffee due to shifting consumer preferences — more people were buying beans and visiting cafés. Analysts forecasted the compound annual growth rate of instant coffee’s sales value would slow to 8.3% between 2012 and 2017, with its market value hitting $1.72 billion by 2015.

China vs the World: Consumption Numbers

Globally, the coffee market was valued at roughly 12 trillion RMB, with the United States leading at around 3 trillion RMB annually. In contrast, China’s coffee market was worth only about 700 billion RMB. However, China’s annual growth rate of around 15% far exceeded the global average of 2%.

Per capita, the average Chinese person drank just 0.03 kilograms (about 4 cups total) of coffee per year in the early 2010s. By comparison, EU residents averaged 5.6 kg, Americans 4.2 kg, and the global average was 1.25 kg. Neighboring countries showed even higher consumption: Japanese drinkers averaged 200 cups per year, Koreans 140 cups. In major Chinese cities like Beijing, Shanghai, and Guangzhou, annual per capita consumption reached around 20 cups.

Global vs Chinese Drink Preferences

Worldwide, over 87% of coffee consumption came from freshly brewed (ground bean) coffee, with instant making up less than 13%. In China, the reverse was true: 84% of consumption was instant coffee, while only 16% was freshly brewed.

Why China’s Coffee Market Still Has Huge Upside

Despite a decade of rapid growth, analysts believed the industry could sustain double-digit expansion — over 10% annually — for years to come. Several key factors pointed to continued growth in both volume and structure of consumption.

Urbanization and Commercial Development

China’s accelerating urbanization expanded the pool of potential coffee drinkers. Urban populations drank more coffee than rural ones. Starting in 2007, cities at all tiers invested heavily in commercial centers — each new development typically included restaurants and cafés, directly boosting demand.

Demographics: Young and Middle-Aged Consumers

Coffee appealed strongly to younger and middle-aged demographics. Surveys showed varying preferences across age groups, with 24% of respondents aged 41–50 and 18% of those aged 20–30 reporting they “very much” liked coffee.

Rising Incomes Drive Consumption

As a non-essential, preference-driven product, coffee consumption correlated strongly with disposable income. Higher earnings enabled more frequent and higher-quality purchases.

Coffee vs Tea: A Shifting Landscape

While the number of traditional teahouses in China grew modestly — from 48,842 in 2007 to 50,984 in 2012 (a 4% increase) — the number of coffee shops more than doubled, rising from 15,898 in 2007 to 31,783 in 2012. This shift highlighted coffee’s emerging role as a social and daily beverage alternative.

Frequently Asked Questions

How much coffee did China consume in 2012?

China consumed 110,000 60kg bags of coffee in 2012, up from 19,900 bags in 1998. This represented a compound annual growth rate of approximately 12.8% over the 14-year period.

What percentage of coffee consumed in China was fresh (brewed from beans) in the early 2010s?

In the early 2010s, only about 16% of coffee consumed in China was freshly brewed (from ground beans), while 84% was instant coffee. Despite lower volume, fresh coffee was growing faster in sales value.

How does China’s per capita coffee consumption compare globally?

In the early 2010s, China’s per capita coffee consumption was just 0.03 kilograms (around 4 cups per year), compared to 5.6 kg in the EU, 4.2 kg in the US, and a global average of 1.25 kg. Major Chinese cities averaged about 20 cups per person annually.

What was the projected market value of instant coffee in China by 2015?

The market value of instant coffee in China was projected to reach $1.72 billion (17.2) by 2015, with an expected compound annual growth rate of 8.3% between 2012 and 2017.

Why is China’s coffee market expected to keep growing?

China’s coffee market is expected to maintain over 10% annual growth due to urbanization, rising incomes, a young demographic that favors coffee, and the ongoing shift from tea to coffee as a social beverage — plus the expansion of cafés in new commercial developments.

Recommended FrontStreet Beans for Exploring Fresh Coffee

Try FrontStreet Coffee’s Ethiopia Humbera for bright floral and citrus notes, or their Yirgacheffe for juicy berry and stone fruit profiles — both highlight the qualities of freshly brewed coffee that gained popularity in China post-2010. For a deeper cup, their PWN Golden Mandheling offers classic Indonesian body with herbal sweetness. All showcase the specialty coffee shift detailed in the 2012 market data. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.