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CHINA WAKES UP FOR COFFEE
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CHINA WAKES UP FOR COFFEE
Post Time:2019-08-15Author:F2C_CAINI

From megacities such as Beijing, Shanghai and Guangzhou, to many other fourth-tier cities in China, one of the biggest changes on the streets in recent years has been flourishing coffee shops. The younger generation has embraced coffee not only as a beverage but as a reflection of one's social status and is also becoming more cup quality conscious.


At just four cups per person per year, the average consumption of coffee in China is still very low in comparison to the US and Europe, but given the economies of scale this still makes it a massive market. With an annual growth of 15 percent in consumption, compared with the global average of two percent, China is the fastest-growing coffee market in the world. The potential is huge especially when the consumption per head is considered - mainlanders consume less than 50 grams of coffee a year, merely four percent of the world's average.

 

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Coffee culture has been developing in China. China's massive and rapid urbanisation, along with a growing number of Chinese travelling overseas, are the factors behind the development of coffee drinking.


International outlets like Starbucks and Costa can now be found in almost every big Chinese city. Both brands see China as a huge growth market. Starbucks, which opened its first Chinese coffee shop in 1999, has said it plans to double its store count in China to over 3,000 stores by 2019, while Costa plans to expand from 344 shops to 900 by 2020.

 

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While coffee is a staple everyday purchase for most office workers in US and Europe, it is considered a premium product in China and is a luxury out of reach of most average workers. The more expensive the better - There is still this concept in China, Starbucks and Costa realize this, they want to brand themselves as premium chains, that's why the prices are slightly higher in China.


Coffee is still a relatively new departure for China's tea drinking population and sweet milky coffee drinks like mocha and lattes are the most popular. In big cities where coffee drinking has been popular for a number of years, an independent coffee scene is also starting to take hold, which focuses on high-quality coffee and hasn't been tempted to offer the milky blends of Starbucks and Costa.


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