China will continue to offer potential for high growth to coffee beverage players, experts said. For, new consumers are being continually attracted to support the ready-to-drink or RTD coffee and coffee pod machines, they said. Hope Lee, senior analyst of Euromonitor International, said increasingly, coffee beverage players are looking beyond younger consumers and white-collar workers in big cities to expand the market. Some people in second-tier cities have already picked up the habit of drinking coffee…Full Article: May 2016

Key Points

  • From 2014 to 2015, Nestlé’s (Switzerland) share of China’s RTD coffee market grew from from 56.4% to 58.1%, while Suntory Holdings’ (Japan) share declined from 14.2% to 12.6% and Uni-President Enterprises’ (Taiwan) share decreased from 6% to 5.2%. Latte was the most popular within China’s RTD coffee market.
  • In 2015, China’s coffee pod market was dominated by Nestlé (Nespresso and Dolce Gusto brands), while Lavazza pods had a much smaller share.
  • You Ji Jia (Shanghai) Food Trading is a leading coffee distributor in China whose product line includes specialty coffee mixes such as instant cappuccino and café latte.

ChinaAg Comments

  • According to the Mintel (market research firm), by 2019, China’s coffee market with reach approximately US$14.16 billion.
  • In March 2015, Tingyi signed an agreement with Starbucks to produce and distribute the Seattle-based company’s RTD products in mainland China.
  • In 2014, Nestle had a ~55% share of China’s ready-to-drink (RTD) market. The next largest suppliers were Suntory Holdings Ltd with ~14%, Uni-President Enterprises Corp with ~6%, and Starbucks (ranked 7th overall) with just a 1% RTD market share. Both Uni-President China Holdings and Want Want China Holdings both reported declining profits in 2014.

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