Introduction:As the pandemic reshapes consumer habits in China, the domestic coffee market is undergoing profound transformation. From the expansion of chain brands to the rise of independent cafes, from instant consumption to specialty coffee, local coffee bean processing techniques have also steadily matured. This article delves into China’s coffee consumption trends, origin advancements, and market dynamics, while drawing comparisons with Taiwan’s experience to help you grasp the most noteworthy local specialty beans and current market movements.
In post-pandemic China, drinking coffee is no longer exclusive to urban white-collar workers but is gradually permeating all age groups and life scenarios. From offices to homes, from instant to pour over, the nation’s demand for coffee is undergoing a critical shift from “quantity” to “quality.” This wave of change is not only reshaping the cafe landscape but also creating opportunities for locally grown beans to shine.
In first-tier eastern cities such as Shanghai, Beijing, and Shenzhen, holding a coffee cup while moving between office buildings and street-corner cafes has become a daily routine for many young professionals. With economic development and an accelerating pace of life, the coffee-consuming demographic has rapidly expanded — including both international chains that emphasize efficiency and consistency, and independent cafes that attract loyal customers with unique flavors and ambiance.
According to data from Euromonitor International, in 2016, China’s per capita annual coffee consumption was just 3 cups, a stark contrast to South Korea’s 377 cups, the US’s 363 cups, and the UK’s 250 cups — highlighting a significant gap. Yet this also signals vast growth potential in the future market. As the middle class continues to expand, it is projected that by 2022, China’s middle-class population will reach between 450 million and 600 million, bringing a new wave of consumption dividends to the coffee market.
Starbucks entered the Chinese market nearly two decades ago and remains bullish on its growth prospects. Starbucks CEO Kevin Johnson told Reuters that the rapid rise of the middle class will continue to drive coffee demand, with a goal to expand its number of stores in China from the current 2,800 to 10,000 within the next two decades — nearly matching its scale in the United States. Meanwhile, Dunkin’, which once faced challenges in China, plans to open 1,400 stores across the country in the next 20 years, reflecting long-term confidence among international brands in the Chinese market.
At the same time, the influence of independent cafes is gradually rising. Euromonitor analyst Yu Limin observed that many small and independent brands have emerged like mushrooms after rain, with registration numbers surging. These independent cafes often provide beverage experiences that chains cannot replicate, through distinctive flavors, pour over techniques, and innovative bean blends. For instance, Max, the owner of a Beijing cafe, crafted a layered specialty coffee featuring notes of blue citrus liqueur, peach, mango, and rose, successfully cultivating a loyal customer base. Despite relocating twice due to space constraints, the cafe still enjoys a stable clientele.
When discussing coffee quality, the progress of China’s domestic coffee beans cannot be overlooked. China produces approximately 138,000 metric tons of coffee beans annually, with output nearing the combined total of well-known producing regions such as Kenya and El Salvador. In the past, coffee beans from Yunnan were mostly used for instant coffee production, with generally mediocre flavor profiles. However, in recent years, thanks to improved farming techniques and international processing experiments, the quality of Yunnan coffee beans has seen remarkable breakthroughs.
Samuel Gurel, CEO of Torch Coffee Roasters, has long been focused on the Yunnan producing region. His team collaborated with the non-profit Coffee Quality Institute to conduct 40 different coffee processing experiments on a donated plot of land in Yunnan. The results revealed that coffee beans at different altitudes are suited to different processing methods: low-altitude areas are ideal for natural processing, mid-altitude for honey processing, and high-altitude regions perform best with washed processing. Through targeted processing, the team successfully elevated the cupping scores of some beans from 80 to 86 — a score rarely seen in Asian producing regions, accompanied by intense fruity aromas that broke past stereotypes about Asian bean flavors.
China’s coffee development journey shares many similarities with Taiwan’s. Both were initially influenced by Japanese and American coffee cultures — from corporate-scale planting during the Japanese colonial period, to the popularization of instant coffee during the American aid era, to the prevalence of Japanese-style slow roasting and siphon brewing. Starting in the 1990s, small-scale roasteries and home roasting machines gradually gained traction. After Starbucks entered Taiwan in 1998, it further boosted the popularity of specialty coffee. Today, Taiwan boasts a high density and diverse range of cafes, offering everything from light to dark roasts, and from pour over to espresso, providing consumers with abundant choices, while the quality of local beans continues to improve steadily.
Looking ahead, China’s coffee market will continue to evolve. In January 2024, China will host its first coffee forum in Pu’er, Yunnan, expected to gather around 300 industry professionals to discuss market trends, extraction techniques, and quality management. Whether it’s the scale expansion of chain brands or the localization path of specialty coffee, the future landscape of Chinese coffee promises to be more diverse and exciting.
For specialty coffee enthusiasts, finding a locally grown bean with clear flavor profiles and great value is no longer a challenge. Whether you prefer bright citrus notes or enjoy the sweet complexity of fermentation, there are now more opportunities to experience the charm of China’s domestic specialty coffee through consistent roasting and reasonable pricing.
The above content is compiled by CoffeeHunters, a coffee news website.
