China’s Coffee Consumption to Soar to 6.3M Bags This Year

China’s Coffee Consumption to Soar to 6.3M Bags This Year

According to the latest bi-annual report on coffee markets and trade published by the US Department of Agriculture (USDA) and endorsed by the World Agricultural Outlook Board, China’s coffee consumption is experiencing unprecedented growth. The country’s consumption is expected to reach 6.3 million bags in 2024, making China the world’s sixth-largest coffee consumer. Over the last decade, coffee consumption in China has risen by nearly 150%, growing from just over 2 million bags in the early 2010s to more than 6 million bags today.

Despite tea remaining the dominant beverage in China, coffee is steadily gaining popularity, especially among younger urban professionals who increasingly prefer to buy coffee outside their homes. Major cities such as Beijing, Shanghai, Guangzhou, and Shenzhen continue to lead the market, but smaller cities like Chengdu, Hangzhou, Suzhou, and Chongqing are emerging as growing hubs for coffee retailers.

Initially dominated by international coffee chains after trade liberalization in the early 2000s, China’s coffee retail landscape has recently seen significant growth from domestic chains. This expansion has been facilitated by online purchasing options, including in-store pickup and delivery services, which have helped reduce costs and increase accessibility, further stimulating consumption. Consumers are also transitioning from imported soluble coffee to locally roasted coffee identified by its domestic or imported origin.

Coffee Production in China

China ranks as the world’s 13th largest coffee producer, with an estimated harvest of 1.8 million bags in the 2024/25 season, expected to rise to 1.9 million bags the following year. Coffee production in China is concentrated in Yunnan Province, particularly in the prefectures of Baoshan, Dehong, Pu’er, and Lincang. These regions, situated at altitudes of 1,000 to 2,000 meters above sea level, grow predominantly Arabica coffee.

Catimor remains the most commonly cultivated variety due to its resilience against diseases like leaf rust, although it is sometimes criticized for its inferior flavor. To meet rising demand for premium coffee, Chinese growers are increasingly planting other Arabica varieties such as Bourbon and Typica, which offer superior taste profiles and better compete with imports.

Coffee Imports and Trade Trends

China’s coffee imports have nearly tripled in the past decade, growing from 900,000 bags in 2014/15 to a forecasted 5.6 million bags in 2024/25. This surge has been primarily driven by green coffee imports, which have increased to an estimated 3.6 million bags. Brazil and Colombia have emerged as leading suppliers, overtaking Vietnam and Indonesia. Meanwhile, imports of soluble coffee have remained stable at approximately 1.8 million bags, with Vietnam and Malaysia being the primary sources. The country also imports less than 400,000 bags of roasted coffee, mainly from the European Union and the United States.

Changing Consumer Preferences

The shift in consumer behavior towards coffee in China can be attributed to changing lifestyles, especially among younger generations. The trend is further supported by innovations in retail, including digital platforms for online orders, which have made coffee more affordable and accessible. As the coffee market in China continues to expand, the country’s role in the global coffee industry is poised to become increasingly significant.

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