Kopi Luwak Coffee’s Comeback in China’s Booming Market

In recent years, as the third wave of coffee culture spread globally, urban China has seen an explosion in specialty coffee chains. Among them, one of the world’s most infamous and expensive brews—kopi luwak, or civet coffee—has quietly carved out a niche. Once a novelty, it’s now expanding rapidly, with more than 110 locations across 30-plus Chinese cities. But what’s driving its resurgence, and can it compete in today’s discerning coffee market?

Kopi luwak has over 110 stores in more than 30 Chinese cities and is expanding quickly. Since opening its first location in 2011, the brand has built a solid foothold, especially as the domestic coffee market grows at double-digit rates. Its rebound signals a strategic push into the premium and mid-tier segments.

China’s Coffee Market Is Booming

China’s coffee consumption has surged over the past decade. Before 2010, the country consumed just 3–4 tons of coffee annually. Between 2010 and 2014, that figure rose to 7.5 tons per year, growing at 20–25% annually. By 2015, experts projected consumption would hit 12 tons, with retail sales exceeding 50 billion yuan. The coffee shop segment is the fastest-growing part of the market. According to Mintel, China’s coffee shop count more than doubled from 15,000 to over 30,000 in five years, with one in five urban consumers visiting a café at least five times a year. The China Coffee Market Analysis (2012) forecasts annual growth of 10–15%, far outpacing the global average of 2%. By 2020, the market could reach 120–150 billion yuan—up from 70 billion yuan—with 85% of consumption still coming from instant coffee.

Regional Growth and Market Potential

The southern China (or Greater Bay Area) market is growing especially fast, with rates as high as 30%. Analysts like Zhu Danpeng from the China Food Business Research Institute note that per capita coffee consumption in China is still very low—just four cups per year, compared to nearly 20 cups in tier-one cities like Beijing, Shanghai, and Guangzhou, and a daily cup in countries like Japan and the UK. With rising incomes and expanding coffee culture, experts predict much faster growth over the next decade. For international brands, China remains an untapped opportunity. Starbucks, which entered China in 1999, now operates over 1,900 stores in 99 cities, employing 30,000 staff. Costa and Pacific Coffee, backed by strong local partners like Hualian and China Resources, also enjoy significant market advantages.

Kopi Luwak’s Strategic Comeback

Since its first outlet in 2011, kopi luwak has expanded to more than 110 locations in over 30 Chinese cities. In 2015, the brand completed its mainland China roasting facility, enabling localized production of key ingredients and improving supply chain efficiency. The company also expanded its franchise network, enhanced logistics, and invested in training systems—marking a shift into a high-growth phase. Kopi luwak targets the mid-to-high-end market, offering a product mix where premium kopi luwak makes up just 30% of sales, while 70% consists of mid-tier (priced around 20–30 RMB) and instant coffee options. This approach allows the brand to appeal to both coffee aficionados and casual drinkers.

Brand Positioning and Consumer Appeal

Kopi luwak has positioned itself firmly in the mid-to-high-end segment, focusing on detail and quality. According to Zhu Danpeng, the brand appeals to “hardcore” coffee consumers with discerning tastes. China’s coffee market is split between premium and mass-market segments, and kopi luwak’s strategy targets the former. While competition is fierce—Starbucks, Costa, and Pacific Coffee are all rapidly expanding—kopi luwak has managed to carve out a unique space. Though it poses a challenge to other players, industry insiders believe it will take time for the brand to significantly reshape the overall market landscape.

Frequently Asked Questions

What is kopi luwak coffee?

Kopi luwak, also known as civet coffee, is made from coffee beans that have been eaten and excreted by the Asian palm civet. The digestive process is said to alter the beans’ flavor profile, though its controversial production methods have drawn criticism. It is among the most expensive coffees in the world.

How many coffee shops are there in China?

According to Mintel, China had over 30,000 coffee shops in 2015, more than double the number five years prior. Urban consumers are visiting cafés more frequently, with one in five going at least five times a year.

What is the growth rate of coffee consumption in China?

From 2010 to 2014, China’s coffee consumption grew at 20–25% annually, reaching 7.5 tons per year. By 2015, it was projected to hit 12 tons, with retail sales over 50 billion yuan. The market could grow to 120–150 billion yuan by 2020.

How many kopi luwak stores are there in China?

Kopi luwak has expanded to more than 110 stores across 30-plus Chinese cities since its first location opened in 2011. The brand continues to grow through franchising and improved logistics.

Where does kopi luwak fit in the Chinese coffee market?

Kopi luwak targets the mid-to-high-end market, with 30% of its offerings being premium kopi luwak and 70% consisting of more affordable options like mid-tier coffee and instant products. It competes with global brands like Starbucks, Costa, and Pacific Coffee.

Recommended FrontStreet Beans for Specialty Blends

Try FrontStreet Coffee’s Ethiopia Humbera for bright floral and citrus notes, or Yirgacheffe for juicy berry and stone fruit complexity—both ideal for exploring the nuances of high-quality single origins. For something deeper, their PWN Golden Mandheling offers classic Indonesian earthiness with a syrupy body. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.