150% Growth in Coffee Consumption in China Over the Past Decade

 

The annual report released by the United States Department of Agriculture on global coffee markets revealed a significant increase in coffee consumption in China, which grew by 150% over the past decade. Consumption is expected to reach 6.3 million bags (weighing 60 kilograms each) in the 2024/2025 season.

The report noted that domestic coffee production in China is estimated at only 1.9 million bags during the same season, making the country heavily reliant on imports to meet the growing demand. High-quality green coffee now accounts for more than 60% of total imports.

This shift reflects a major change in consumption patterns among young professionals in major cities such as Beijing, Shanghai, Guangzhou, and Shenzhen. Additionally, markets have expanded into smaller cities like Chengdu, Hangzhou, Suzhou, and Chongqing, supported by local companies offering online shopping and delivery services.

Globally, the report projected that production will rise to 174.9 million bags in the 2024/2025 season, an increase of 6.9 million bags compared to the previous season, driven by production recovery in Vietnam and Indonesia. Global consumption is expected to reach 168.1 million bags, with the highest growth rates recorded in the European Union, the United States, and China.

Regarding coffee-producing countries, the report highlighted that Brazil remains the largest producer and exporter of coffee, with an expected production of 66.4 million bags, followed by Vietnam at 30.1 million bags as it recovers from drought impacts over the past two seasons.

Despite the growth in production, the report pointed to a decline in global coffee stocks by 1.5 million bags, reducing total stocks to 20.9 million bags, reflecting continued strong demand.

China stands out as an example of integrating coffee into a new consumption culture in a country historically associated with tea as the primary beverage. Coffee is cultivated in China, primarily the Arabica variety, in Yunnan Province at altitudes ranging between 1,000 and 2,000 meters above sea level, with growing interest in planting varieties like Bourbon and Typica to enhance the quality of local production.

China’s coffee imports have risen significantly over the past decade, reaching 5.5 million bags in the current season, with expectations of an increase to 5.6 million bags in the 2024/2025 season. This growth is largely driven by the rise in green coffee imports, which surged from 900,000 bags in the 2014/2015 season to a projected 3.6 million bags. While Vietnam and Indonesia were initially the main suppliers, Brazil and Colombia have since taken the lead.

Although demand for instant coffee has remained relatively stable at around 1.8 million bags, overall consumption is expected to continue its upward trajectory, solidifying China’s position as a key driver of global coffee demand.

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