According to the Import and Export Bureau, tea is still China’s traditional drink, but China’s demand for coffee continues to grow, especially among urban areas and young people. The instant coffee segment holds a significant share of the market thanks to its ease of use.
Rising household spending, changing lifestyles and acceptance of Western cultural trends by middle-class consumers have all contributed to an increase in demand for instant coffee across the country.
According to the China Coffee Association (CCAB), the country’s coffee consumption is growing at an annual rate of 15%. According to Mordor Intelligence, the Chinese coffee market is forecasted to achieve an average growth rate of 10.15% in the period 2021-2026.
Pandemic COVID-19 does not reduce the demand for coffee, because people switch to consuming more at home. In the first 6 months of the crop year 2020-2021 (From October 2020 to April 2021, China’s coffee consumption reached about 3.7 million bags of 60 kg coffee.
Meanwhile, China’s coffee production is about 1.8 million bags. As a result, China is heavily dependent on imports.
According to statistics from China’s Customs Administration, the country’s coffee import turnover (HS 0901) in September 2021 reached 54 million USD, up 62.4% compared to September 2020.
Generally, in the first nine months of 2021, China’s coffee import turnover reached US$387.76 million, up 75.3% over the same period in 2020.
The supply of coffee to China is diverse, with about 80 supplying markets. In which, the main coffee supplying markets for China include: Guatemala, Ethiopia, Vietnam, Malaysia, Brazil…
According to statistics from the China Customs Administration, the country’s coffee imports from Guatemala and Ethiopia in the first 9 months of 2021 reached 49.8 million USD, up 170.3% and 203.6 % respectively over the same period in 2020.
Coffee market share of Guatemala and Ethiopia of China’s total imports increased from 8.33% and 7.09% in the first nine months of 2020 to 12.84% and 12.28%, respectively, in the first nine months of 2021.
In the first 9 months of 2021, China’s coffee import turnover from Vietnam reached 46.28 million USD, up 69.5% over the same period in 2020.
Vietnam’s coffee market share in total imports from China decreased from 12.34% in the first 9 months of 2020 to 12% in the first 9 months of 2021.
The Chinese coffee market is highly competitive. Therefore, the Import-Export Department believes that in order to increase market share in China, Vietnam’s coffee industry needs to actively innovate designs, product packaging and improve quality to meet the increasing demands of consumers. consumption.
Besides, businesses can focus on social media platforms and online distribution channels for online promotion and product branding.