Nestle wants to set up Coffee Center in China

China's coffee market has great room for development. In recent years, both the coffee consumer population and the consumer market in China have shown a trend of rapid growth, with its annual per capita consumption increasing at a rate of 30%, far exceeding the annual growth rate of world coffee consumption. It is estimated that by 2020, China will become a major coffee consumer in the world equivalent to Japan. Therefore, it is extremely important for the major coffee brands to enter the Chinese market.

NESN, the world's largest food company, said on Tuesday that it would invest at least Rmb100m in the Chinese market to set up a coffee center, seeking to increase coffee consumption in the Chinese market.

HeikoSchipper, Nestl é Greater China business director, said the coffee industry had a lot of room for growth in China's internal reading market because coffee consumption in the mainland was lower than in other parts of Greater China. "Coffee has huge growth potential because its per capita consumption is still very low," he said. Total consumption is also very low, with only four cups per person in mainland China, compared with 100 to 150 cups per person in Hong Kong and Taiwan. "

Nestl é, which sells products such as Nestle coffee and Meiji soy sauce in China, is working to expand its food and beverage business in China as rising personal incomes are driving consumption growth among Chinese consumers. Nestl é said the new coffee center in Yunnan province would train 5000 farmers, agronomists and coffee business experts each year, as well as a coffee testing laboratory and consumer education facilities.

China is now the company's second-largest market, with annual sales of about 6 billion Swiss francs (39 billion yuan), according to Nestl é's previous annual report. Since 2010, Nestl é has formed a bottled water joint venture in the Chinese market and acquired controlling stakes in companies such as Xu Fuji and Yinlu Food Group. Last year, Nestl é also bought Pfizer's baby nutrition business, a deal that will help the Swiss company increase its share of China's baby food market.