![]() Modern city life means that most young adults find themselves in need of caffeine first thing in the morning. Their target customers: loyal coffee lovers who are less price-sensitive and attach great importance to the quality of beans and coffee house vibes.Īnd then there is an altogether different group of consumers - those who simply cannot live without it. According to local media, on the day of the opening, people were spending as long as six hours queuing, while scalpers were reselling a $6.5 (42 RMB) iced latte at $15.7 (100 RMB).Īs a pioneer of “the third wave coffee” (which refers to a movement in marketing that emphasizes high quality), Blue Bottle Coffee will inevitably find itself facing competition with the artisanal brands that have been in the mainland for years, including % Arabica, Peet’s, and Starbucks. Last month, Blue Bottle Coffee, also known as “the Apple of coffee,” officially entered the Chinese arena. In 2025, the market value is expected to reach $157 billion (1,000 billion RMB). According to iiMedia Research, the industry was worth $60 billion (381.7 billion RMB) in 2021, with an estimated 27.2 percent yearly increase. With changes in the diet of Chinese consumers and the increasing popularity of the beverage, the local coffee business is now experiencing accelerated development. Coffee is no longer just trendy - it’s a part of the daily routine. More importantly, in the first- and second-tier cities, where the drink has become a habit for many, an average of 300 cups of coffee are consumed per year, which is as many as those in a more sophisticated coffee market. This number rose to 9 in 2021, as reported by Deloitte’s White Paper on China’s Fresh Coffee Industry. According to Euromonitor, in 2018, the average consumption per capita in the Chinese mainland was 4.7 cups. In this, Luckin has done an excellent job. Declaring its intention to “educate the market with 1 billion CNY” ($157 million), the retailer has successfully become the number one alternative to Starbucks. Since 2018, Luckin has focused on its store expansion and consumer subsidies. While the mainstream had remained untouched until Starbucks’ Beijing debut, the brand Luckin played a significant role in warming up the coffee sector and making the drink a habit around the country. COFFEE BREAK CHINESE PROFESSIONALAfter much time and effort, it has managed to establish a high-end and professional image in China, and retain its leading position in the country’s premium coffee trade. With the goal of building its brick-and-mortar outlets as “The Third Place”(Starbucks is a third place between home and the workplace where people can relax), the company ran at a heavy loss for nine years in China. In 1999, Starbucks opened its first Chinese store in Beijing. Given such developments, how did this vast market come into being? And how have luxury brands leveraged this opportunity? A few days later, Goubuli, a long-established food firm from Tianjin, formally established a company named Gao Leya Coffee Food (Tianjin) Co., Ltd.Īs the industry has become more competitive and sophisticated, leading high-end players are also diving in like Blue Bottle Coffee, which opened its first store in the mainland last month. Meanwhile, domestic chains such as Luckin, Seesaw, and Manner have seen rapid development and gained financial injections from investors.ĭue to the sector’s rapid expansion, everyone now wants a piece from the action - including “outsiders.” China Post opened its first coffee house named “Post Coffee” on Valentine’s Day. Whether it will retain the lead in the Chinese coffee shop market remains a heated discussion. Starbucks has been embroiled in controversies from inappropriate staff manners to price hikes. ![]()
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