Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Keep up with the growing momentum
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- Figure 1: Best- and worst-case value sales forecast of coffee, China, 2011-21
- Instant coffee dominates the retail market but is shrinking
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- Figure 2: Coffee retail value market share, by segmentation, China, 2011-16
- Companies and brands
- Concentrated market dominated by few players
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- Figure 3: Leading companies in China non-liquid coffee market, by value, 2014 and 2015
- Winning the capsule coffee category
- More RTD coffee targets young consumers
- The new instant: drip-bag coffee
- The consumer
- Instant coffee enjoys the highest consumption, followed by RTD coffee
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- Figure 4: Coffee consumption frequency, by types of coffee, June 2016
- More using as an energy boost
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- Figure 5: Coffee drinking occasion, June 2016
- Online channel is crucial for instant coffee and coffee beans
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- Figure 6: Purchase channel of coffee, by types, June 2016
- Most prefer sweetened coffee to black
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- Figure 7: Consumers’ preference between black coffee and sweetened coffee, June 2016
- A regular drink for the older while an indulgence for the younger
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- Figure 8: Consumers’ attitudes towards coffee, June 2016
- Smell is the key
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- Figure 9: The ideal coffee attributes for Chinese consumers, June 2016
- High interest in artisan coffee and coffee with additional health benefits
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- Figure 10: Consumers’ interest in different coffee innovations, nutrition-related, June 2016
- Mintropolitans are sophisticated coffee drinkers
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- Figure 11: Consumers’ coffee consumption behaviour, by consumer classification, June 2016
- What we think
Issues and Insights
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- Opportunities for the rising domestic manufacturers
- The facts
- The implications
- Engage the young consumers
- The facts
- The implications
- The capsule coffee market in China
- The facts
- The implications
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- Figure 12: Example of capsule coffee with cream and sugar ingredients, US, 2016
The Market – What You Need to Know
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- Keep up with the growing momentum
- Instant coffee dominates the retail market but is shrinking
- Competition from on-trade channel coffeehouses
Market Size and Forecast
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- Keep up with the growing momentum
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- Figure 13: Retail market value of China’s coffee market, 2011-16
- Figure 14: Best- and worst-case value sales forecast of coffee, China, 2011-21
- Consumption per capita growing faster than other major markets
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- Figure 15: Non-liquid coffee retail market volume & volume consumption per capita, China, Japan, US and UK, 2011-16
Market Segmentation
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- Instant coffee dominates the retail market but is shrinking
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- Figure 16: Coffee retail value market share, by segmentation, China, 2011-16
- Instant coffee: Specialty is more popular than plain
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- Figure 17: Instant coffee retail value market share, by sub-category, China, 2011-16
- Rise of RTD coffee
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- Figure 18: RTD coffee launched between 2014 and June 2016, by region
- Fresh coffee grows through premiumisation
Market Drivers and Barriers
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- Coffee becoming a routine
- Rely on coffee for the busier lifestyle
- RTD coffee premiumisation
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- Figure 19: Percentage of newly launched RTD coffee product with ‘premium’ claim, China, 2014-16
- Competition from on-trade channel coffeehouses
Companies and Brands – What You Need to Know
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- Concentrated market dominated by few players
- RTD coffee targets young consumers
- The new instant: Drip-bag coffee
- ‘Cold-brewed’ moving from on-trade to off-trade
Market Share
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- Concentrated market dominated by few players
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- Figure 20: Company share of non-liquid coffee market in China, 2014 and 2015
- Nestlé also leads the RTD coffee market
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- Figure 21: Company share of RTD coffee market in china, 2015
Competitive Strategies
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- Winning the capsule coffee category
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- Figure 22: Percentage of capsule or pod type of coffee launched, Global, 2014-16
- RTD coffee targets young consumers
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- Figure 23: RTD coffee products targeting young consumers, China, 2015-16
- International players collaborate with local players
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- Figure 24: The sino-foreign-collaborated RTD coffee products, China, 2015-16
- Nestlé increases local coffee bean source from Yunnan
Who’s Innovating?
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- The new instant: Drip-bag coffee
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- Figure 25: Top 10 claims on the newly launched coffee products, China, 2014-16
- Figure 26: Percentage of drip coffee among the total newly launched non-liquid coffee, China, 2014-16
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- Figure 27: Product example of drip coffee in China, 2015-16
- Products premiumisation
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- Figure 28: Example of premium coffee product, US, 2016
- Category blurring with coconut water
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- Figure 29: Example of coconut water coffee, US, 2014-16
- Foaming coffee
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- Figure 30: Product example of foaming coffee, Japan and China, 2016
- ‘Cold-brewed’ moving from on-trade to off-trade
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- Figure 31: Percentage of cold-brewed coffee in the RTD coffee category, Global, 2014-16
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- Figure 32: Example products of cold-brewed coffee, US and Indonesia, 2016.
The Consumer – What You Need to Know
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- Boosting energy is the main purpose
- Most prefer sweetened coffee to black
- A regular drink for the older while an indulgence for the younger
- Smell is the key
Frequency of Drinking Different Types of Coffee
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- Instant coffee enjoys the highest consumption, followed by RTD coffee
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- Figure 33: Coffee consumption frequency, by types of coffee, June 2016
- Self-made coffee is still not the mainstream
Drinking Occasions
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- More using as an energy boost
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- Figure 34: Coffee drinking occasion, by function, June 2016
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- Figure 35: Example of coffee products with energy-boosting claim, US and China, 2015-16
- More drink at work or study places
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- Figure 36: Coffee drinking occasion, by location, June 2016
- Coffee is not a breakfast drink in China
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- Figure 37: Coffee drinking occasion, by time of the day, June 2016
- Figure 38: Example of coffee products featuring the breakfast occasion, Japan and US, 2015-16
Purchase Channels
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- Online channel becomes increasingly important for instant coffee
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- Figure 39: Purchase channel of instant coffee, June 2016
- Coffee beans are primarily bought from imported food stores and online
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- Figure 40: Purchase channel of coffee beans, June 2016
- RTD coffee as a result of impulse purchase
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- Figure 41: Purchase channel of RTD coffee, June 2016
Consumption Behaviour
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- Most prefer sweetened coffee to black
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- Figure 42: Consumers’ preference between black coffee and sweetened coffee, June 2016
- Domestic coffee has room to improve
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- Figure 43: Consumers’ attitudes towards coffee beans, June 2016
- Figure 44: Consumers’ attitudes towards international and domestic brands, June 2016
- A regular drink for the older while an indulgence for the younger
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- Figure 45: Consumers’ attitudes towards coffee, June 2016
- Most are familiar with the different coffee types
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- Figure 46: Consumers’ attitudes towards different types of coffee, June 2016
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- Figure 47: Examples of coffee products with the flavour description chart, China, 2015-16
Ideal Coffee Attributes
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- Smell is the key
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- Figure 48: The ideal coffee attributes for Chinese consumers, June 2016
- Nearly half consumers want some dairy notes in their coffee
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- Figure 49: The ideal coffee attributes for Chinese consumers, by age, June 2016
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- Figure 50: Example of RTD coffee featuring creamy and sweet taste, 2016
- Older consumers and high earners care about the brand
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- Figure 51: Consumers who consider an ideal cup of coffee should come from a well-known brand, by age and household income, June 2016
Interested Innovations
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- Consumers want nutrients beyond caffeine
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- Figure 52: Example of coffee product with additional health benefits, US, Thailand and Spain, 2016
- Figure 53: Consumers’ interest in different coffee innovations, nutrition-related, June 2016
- Tapping into the artisan coffee
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- Figure 54: Consumers’ interest in different coffee innovations, product-related, June 2016
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- Figure 55: Example of dessert-inspired fresh coffee, US, 2015-16
- Figure 56: Product example of RTD coffee containing PPD, Spain, US and Japan, 2016
- Fair trade coffee sees opportunity from the top of the pyramid
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- Figure 57: Consumers’ interest in different coffee innovation, ethic-related, June 2016
- Figure 58: Percentage of newly launched coffee products with the ‘fair trade’ claim, global, 2014-16
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- Figure 59: Product example of fair trade coffee, US and Canada, 2016
- Want resealable package but not willing to pay more
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- Figure 60: Consumers’ interest in different coffee innovation, package-related, June 2016
Meet the Mintropolitans
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- Sophisticated coffee drinkers
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- Figure 61: Percentage of consumers who drink the following types of coffee at least once a week, by consumer classification, June 2016
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- Figure 62: Consumers’ coffee consumption behaviour, by consumer classification, June 2016
- High interest in artisan coffee
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- Figure 63: Consumers who are interested in and willing to pay more for the following coffee innovations, by consumer classification, June 2016.
Appendix – Market Size and Forecast
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- Figure 64: Value sales of China’s coffee retail market, 2011-21
- Figure 65: Volume sales of China’s non-liquid coffee retail market, 2011-21
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Appendix – Market Segmentation
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- Figure 66: Value sales of China’s coffee retail market, by segment, 2011-21
- Figure 67: Best- and worst-case retail value sales forecast of RTD coffee in China, 2011-21
- Figure 68: Best- and worst-case retail value sales forecast of fresh coffee in China, 2011-21
- Figure 69: Best- and worst-case retail value sales forecast of instant coffee in China, 2011-21
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- Figure 70: Volume sales of China’s coffee retail market, by segment, 2011-21
- Figure 71: Best- and worst-case retail volume sales forecast of fresh coffee in China, 2011-21
- Figure 72: Best- and worst-case retail volume sales forecast of instant coffee in China, 2011-21
- Figure 73: Best- and worst-case retail volume sales forecast of RTD coffee in China, 2011-21
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Appendix – Methodology, Definition, and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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