Introduction to the Development Prospect of Coffee Industry in China-Analysis of Coffee Industry

In April, Yunnan Coffee Industry Association formed a coffee drought research group to investigate the situation of coffee disaster. According to the on-the-spot investigation, as of late April, due to the serious water shortage, nearly 240000 mu of the existing coffee planting area of 400000 mu in Yunnan was affected, and the harvest was as high as 60, 000 mu. The drought has the greatest impact on coffee seedlings planted within three years, with the mortality rate of newly planted coffee seedlings as high as 40% in 2009. In recent years, China's coffee consumption has maintained an annual growth rate of more than 30%, while the world coffee consumption growth rate is only 6%. Yunnan's 12th five-year Plan proposes to increase the planting area of coffee to 1 million mu, put into production area of 800000 mu, and produce more than 100000 tons. China will become a strong competitor for coffee exporters in the world. At present, the annual output of coffee in the world is about 7 million tons, while the output of coffee beans in China is only about 40, 000 tons. Only in terms of production, the number of small beans in Yunnan can not influence the price change of coffee beans in the international market. Moreover, most of China's domestic coffee consumption depends on imports, which account for 90% of the entire coffee consumption market. Before 2003, the ready-to-drink coffee beverage market in mainland China was in the stage of enlightenment. In 1998, the sales volume of ready-to-drink coffee in the mainland was only 15000 tons, which is equivalent to that of the Taiwan market. This figure is almost zero for a market with a population of more than a billion. However, in recent years, with the increasing diversification of China's beverage market and the endless emergence of subdivided categories, the growth rate of ready-to-drink coffee beverage market is obvious. Especially in 2003, the launch of ready-to-drink coffee "Yaha" opened the gap of ready-to-drink coffee in China with its good taste and low price, together with a large number of media advertisements. Between 2003 and 2008, China's ready-to-drink coffee market experienced a period of rapid growth, during which the overall sales of ready-to-drink coffee market reached a compound growth rate of 15%. In the next few years, the prospect of ready-to-drink coffee drinks in China will remain promising. Coffee as an imported product, for the Chinese people, after all, people who drink every day are still in a minority; for the vast majority of consumers, it is not a necessity of life. The emerging consumer class (such as young white-collar workers, students) have a great interest in coffee, but they belong to the group of consumers who are more unstable, which means they will not constitute lasting spending power. The stable consumers of coffee are mainly middle-aged male intellectuals, but they have higher brand loyalty and less chance to choose new brands. In fact, for most domestic consumers, the drinking of coffee is not as a drink, but a symbol of taste to a greater extent. Therefore, aiming at the consumers of the domestic coffee market, we should patiently educate and spread the coffee culture and publicize the history and culture of coffee in order to expand the domestic market. On the basis of a large number of thorough market research, this research and consultation report is mainly based on a large amount of information published and provided by the National Bureau of Statistics, the State General Administration of Customs, the State Ministry of Commerce, the National Business Information Center, the China Beverage Industry Association, the China Economic Prosperity Monitoring Center, domestic and foreign related journals and magazines, as well as coffee research units, combined with the company's field investigation of coffee-related enterprises. This paper makes an in-depth study on the current situation and prospect of China's coffee industry, market competition pattern and situation, profit level and enterprise development, investment strategy and risk early warning, development trend and planning suggestions, etc. and focus on the prospects and risks of the coffee industry. The report reveals the potential demand and opportunities in the coffee market, and provides accurate market intelligence information and scientific decision-making basis for strategic investors to choose appropriate investment timing and company leadership to make strategic planning. at the same time, it also has great reference value for the bank credit department.