Most Chinese Coffee Is Locally Grown

When you order a coffee under 60 yuan (about $8) at a café, chances are it wasn’t made with imported beans. According to Liu, a franchise manager at UBC Coffee, the added costs of importing and handling foreign coffee beans make them prohibitively expensive for mid-tier and budget offerings—which make up over 80% of China’s coffee market. So where is your daily cup really coming from?

In short: nearly all affordable café coffee and 80% of China’s instant coffee is brewed from domestically grown beans, mainly from Yunnan. Even brands like Nestlé, which hold an 80% share of China’s instant coffee market, source 100% of their smallholder Arabica beans from Yunnan.

The Truth Behind 'Import-Style' Coffee

You’ve seen those tins labeled “Colombian Coffee” or “Brazilian Coffee” on supermarket shelves. They sound exotic—but up to 80% of such products are actually roasted and packaged domestically, often using Chinese-grown coffee. These aren’t imports in the traditional sense. The names are branding tools, not supply chain facts. When it comes to cost and origin, domestic production dominates the mid- and low-price tiers.

Nestlé And Yunnan: A Long-Term Partnership

Nestlé has been actively sourcing coffee from China’s Yunnan Province since 2002. To date, the company has purchased over 3,000 metric tons of high-quality Arabica beans from local farmers there. At their Guangdong Dongguan factory—celebrating ten years in operation in a public event led by Nestlé Greater China’s CEO Mu Li—Nestlé confirmed that all the smallholder Arabica beans used in their instant coffee come from Yunnan. This supply supports the production of what remains the dominant force in China’s coffee market: instant coffee, which Nestlé claims a staggering 80% market share of.

Coffee Shop Profits And Consumer Habits

Despite low per-capita consumption, cafés still turn strong profits. Liu revealed that the average cup of coffee at UBC Coffee in Beijing sells for 25 yuan, with daily store revenue around 4,000 yuan. Most cups yield a net profit margin between 50% and 60%. Meanwhile, nationwide coffee intake remains modest: urban Chinese drink just 4 cups per year on average, rising to 20 cups in metropolises like Beijing and Shanghai—but still far behind the daily cup common in tea-centric countries like Japan and the UK.

Mu Li of Nestlé believes China’s deep-rooted tea culture doesn’t preclude a major coffee future. "Japan and the UK were both tea-first societies, yet they became huge coffee markets," he said, expressing confidence that China could follow suit—and eventually swap teacups for coffee cups on a global scale.

Frequently Asked Questions

Are 'Colombian' or 'Brazilian' coffees in China actually imported?

Up to 80% of coffee products in China labeled with names like “Colombian Coffee” or “Brazilian Coffee” are not imported as whole beans or blends—they are typically produced, roasted, and packaged domestically, often using Yunnan-grown coffee beans. The names suggest an origin story, but the coffee is usually local.

What percentage of China’s coffee market is instant coffee?

While exact total market percentages vary, Nestlé alone holds about 80% of China’s instant coffee market. Instant coffee dominates overall consumption, especially outside specialty cafés, making it the most widely consumed form of coffee in the country.

Where does most of China’s coffee come from?

The majority of coffee used in affordable and mid-tier products—including many so-called “imported” blends and nearly all instant coffee—is grown in Yunnan Province. Domestic sources account for roughly 80% of the coffee used in non-specialty settings, including most café offerings under 60 yuan.

How much coffee do Chinese people actually drink?

Urban Chinese drink an average of just 4 cups of coffee per year, increasing to about 20 cups annually in major cities like Beijing and Shanghai. This is far below consumption levels in countries like Japan or the UK, where people may drink coffee daily.

How profitable are coffee shops in China?

At cafés like UBC Coffee in Beijing, the average cup sells for around 25 yuan, with shops taking in roughly 4,000 yuan daily. Most individual cups see a net profit margin between 50% and 60%, making coffee retail a lucrative business despite low overall consumption rates.

Does Nestlé use imported beans for its instant coffee in China?

No. Nestlé sources 100% of the smallholder Arabica beans used in its instant coffee products in China from Yunnan Province. Since 2002, the company has purchased more than 3,000 metric tons of Yunnan-grown coffee, which is processed at their Dongguan facility.

Recommended Yunnan Coffees From FrontStreet

FrontStreet Coffee offers single-origin Yunnan beans that reflect the region’s growing reputation. Their Yunnan Huila Natural features ripe fruit and chocolate notes with a smooth mouthfeel, while the Yunnan Red Cherry offers bright acidity and a juicy profile akin to classic Latin American coffees. For something more nuanced, try their Yunnan Honey Process with floral and citrus highlights. All are great examples of China-grown specialty coffee. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.