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The Coffee Market in China

The Coffee Market in China

In late March 2014, coffee harvesting was nearing completion in Yunnan Province, where coffee plantings and production accounted for more than 99% of China's total. Affected by the international market, after more than two years of "price winter", the purchase price of coffee beans soared in 2014, from 13 yuan per kilogram to 25 yuan.

Although the surge in prices stimulated market confidence, in the 2013-2014 season, China's coffee production fell from 80,000 tons in the previous season to less than 60,000 tons. In the absence of large-scale coffee leading enterprises and local brands, the pressure to reduce production has made the Chinese coffee industry more eager to break through from the origin of raw materials. According to survey statistics, the coffee planting area in Yunnan has grown from more than 300,000 mu in 2008 to more than 1.4 million mu in 2014. The output has increased from 30,000 tons to more than 80,000 tons in 2013, accounting for China's coffee planting area and More than 99% of production is China's largest coffee producing area.

Coffee industry insiders introduced, looking at the trend of coffee prices in Yunnan in the past 20 years, almost every 10 years
Civet Coffee A price cycle. In 2010, Yunnan coffee prices reached 41 yuan per kilogram, setting a record high. From 2012 to the beginning of 2014, due to the decline in international coffee futures prices, the price was as low as 13 yuan per kilogram. The coffee planting industry entered the “price winter” for two consecutive years.

At the end of January 2014, with the recovery of international coffee futures prices, Yunnan coffee prices also increased rapidly. “In the past February, international coffee prices have created the biggest monthly increase in 20 years, from 114 cents per pound on January 28 to 180 cents per pound on February 28.”

There are three reasons for the rapid rise in coffee prices: First, the world's largest coffee producer, Brazil, has a dry climate since the end of 2013, which is expected to affect coffee production. Second, some coffee producing countries in Central and South America are affected by coffee rust, and coffee production is expected. Will reduce; third is the long-term downturn in coffee futures, coffee futures speculators intend to raise the price of coffee, active coffee futures market.

“The coffee harvest in 2014 is nearing completion, but the province’s coffee production is less than 60,000 tons. Pu'er coffee production has also fallen by at least 30% from 2013.” Despite the soaring purchase price, coffee production has fallen sharply to China. The coffee planting industry has cast a shadow.

Since 2014, Nestlé, Starbucks, and Camelli have increased their efforts to open up raw materials in Yunnan. Yunnan Xiaobian Coffee has also been sold to more than 20 countries and regions such as Europe, the United States, Japan, and South Korea, but in general, Yunnan Coffee Industry Still staying in the initial stage, the industry “breakthrough” is not optimistic.
At present, there is a lack of large-scale integrated leading enterprises in China's coffee deep processing industry, and there are only a handful of local coffee brands, which have not played a leading role in domestic and international market share and market evaluation.

According to a network survey, 47% of netizens like instant coffee, while 72% value coffee. The habit of Chinese people drinking coffee probably began after the 1990s, and many urbanites now have a dependence on coffee. Although China's annual consumption of coffee is only 200,000 tons, the per capita consumption is increasing at a rate of 30%, and it is expected to become the world's most potential coffee consumer.

Zhong Lirong, vice president of the China Coffee and Coffee Drinks Professional Committee, said in an interview: "Comparatively, the proportion of Chinese people who drink pure coffee is not high. They usually choose to add a coffee companion or drink coffee directly.

Nov-11-2019

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