The Kopi Luwak counterattack became the highlight of the coffee market ushered in the perfect counterattack after the trauma of the new rival.

With the third coffee culture wave sweeping the world, the number of coffee chains in China's cities is exploding. Among them, the most expensive coffee in the world at present-cat excrement coffee, is gradually entering the Chinese market. It is understood that since the first cat feces coffee chain store in 2011, cat feces coffee has spread all over more than 30 cities in China, with a total of more than 110 stores. Some experts said that with the continuous expansion of cat feces coffee, China's coffee market will usher in this new enemy.

South China market growth rate as high as 30%

In the past five years, China's coffee industry has ushered in a new growth boom. According to relevant data, coffee consumption averaged 30,000 to 40,000 tons per year before 2010 and 75,000 tons from 2010 to 2014, with an annual market growth rate of 20% to 25%.

Experts estimate that 2015 has ushered in a new growth node for the coffee industry, with consumption reaching 120,000 tons and retail sales exceeding 50 billion yuan. Among them, South China market as an economically developed region, the market growth rate is as high as 30%.

When it comes to the growth rate of the coffee industry, coffee consumption is growing fastest in cafes. According to research firm Mintel, the number of cafes in China has doubled in the past five years, jumping from more than 15,000 to more than 30,000, with one in five urban consumers reporting having visited a cafe at least five times in the past year. According to China Coffee Market Analysis (2012 Analysis), the coffee market in China is expected to grow at an annual rate of 10% to 15% in the future, far higher than the global average growth rate of 2%. It is estimated that by 2020, China's coffee market capacity will reach 120 billion yuan to 150 billion yuan, compared with 70 billion yuan at present; 85% of coffee consumption comes from instant coffee.

Cat shit coffee completed construction of mainland factory

Zhu Danpeng, a researcher at the China Food Business Research Institute, believes that China now consumes only 4 cups of coffee per person per year on average, while Beijing, Shanghai and Guangzhou consume only about 20 cups per person per year. In countries such as Japan and the UK, the average person drinks one cup of coffee a day. With the increase of China's overall consumer population and the improvement of consumption level, China's coffee industry is expected to usher in faster growth in the next 10 years.

For all coffee giants, the Chinese market represents a gold mine to be exploited. "Coffee is still a new face in China and has yet to develop." Wang Jingying, president of Starbucks Greater China, said the Chinese market has grown to become the second largest market after the United States. Starbucks also revealed that Starbucks entered China in 1999 and has opened more than 1900 stores in 99 cities in China with 30000 Starbucks partners.

The so-called good tree to enjoy the cool, as Starbucks 'latecomers, Costa and Pacific Coffee have a strong background. It is understood that Pacific Coffee was acquired by China Resources Enterprise for US $326 million in 2010, and Hualian is also behind Costa. For this, they easily have the market resource advantage envied by Starbucks and other brands.

China's coffee market war is hot, not only Starbucks, Costa, Pacific coffee in the rapid expansion, such as cat feces coffee such rising stars, but also in the pace of the Chinese market. It is understood that since the first cat feces coffee shop in 2011, cat feces coffee chain stores have spread over more than 30 cities in China, with a total of more than 110 stores. In 2015, we improved all management systems, completed the construction of coffee roasting factories in mainland China, realized localized production of raw materials, further opened up franchise areas, improved the construction of logistics system and training system, and entered the stage of rapid development of the brand.

Cat poop coffee positioned in the middle and high-end market

In addition, in order to meet more consumer demand and brand promotion, cat feces coffee not only has pure high-end cat feces coffee, but also has low-end coffee with sales price of about 20~30 yuan, and even instant coffee products. The ratio of high-end products to low-end products is 3:7.

At present, coffee shops in China are uneven and polymorphic. Under this background, Zhu Danpeng believes that Starbucks, Pacific and other coffee chain brands have developed smoothly as a whole, and cat feces coffee is a new force, which is a natural thing. He analyzed: "Cat poop coffee is positioned at the middle and high end of the market, better done in detail, and its consumer population is also 'ashes' and consumers with high requirements for coffee." At present, China has formed a dual consumption structure, and it is expected that the sales development and store expansion of cat feces coffee in 2016 should be relatively stable.

Finally, Zhu Danpeng also pointed out that cat excrement coffee in recent years, no doubt to other brands in the industry formed a certain impact, but to the whole industry pattern to bring disruptive impact will take time.

Author: Liu Fang

Source: Information Times (Guangzhou)