Coffee cultivation and trade in China
China is a relatively young country in terms of coffee cultivation. In the 19th century, French missionaries introduced coffee to Yunnan province (south China), and it became the country's largest coffee-growing region, accounting for 98 percent of the nation's coffee production. China produces a far smaller volume of coffee than its neighbor Vietnam, which was the second-largest coffee producer worldwide in 2020. In comparison, China contributed only about one percent of global coffee production that year.Therefore, the growing coffee demand in the country is heavily dependent on imports. In 2020, Malaysia was China’s largest coffee import partner in terms of import value, supplying more than 50 million U.S. dollars worth of coffee to China, followed by Vietnam, Italy, and Colombia. However, when it comes to volume, Vietnam exported the largest quantity of coffee to China that year. During the crop year ending in September 2020, China imported approximately 1.68 million bags of green coffee beans and at least 1.8 million bags of soluble coffee, showing robust growth compared to the previous year.
China’s coffee consumption
Due to its low price and convenience, instant coffee has dominated the Chinese coffee market for decades. However, China’s freshly ground coffee market has witnessed strong growth as more and more consumers expand their knowledge, taste, and appreciation of a superior quality product. The number of cafes in China has been increasing at a blistering pace, with more than 80 percent of them operating independently. There has been an increase in the number of coffee chains entering China in the past few years, which are expected to expand in market share. By far, Starbucks is the largest fresh-ground coffee seller in China, with more than 5,000 stores across China.The boom of new coffee shops and the popularity of coffee delivery apps make coffee not only extremely accessible in urban China but also fashionable, especially among young professionals. Traditionally a tea-drinking society, Chinese people are opening up to international influences, foreign brands, and new experiences, transforming the coffee market into a highly promising opportunity.
