Recently, Luckin COFFEE founder Lu Zhengyao and former Luckin Coffee CEO Qian Zhiya announced the opening of COTTI COFFEE in Fuzhou. At this time, the competition in Chinese coffee market has begun to become cutthroat and stiff. The year of 2021 has saw the emergence of two major characteristics of coffee market—fast expanding and vast of money flowing into. According to iiMedia Research, in 2021, there were 25 investment and financing cases involving coffee industry, with a total amount of about 6.79 billion yuan, while in 2020, there were 16 investment and financing cases, with a total amount of about 740 million yuan. In 2021, compared with the previous years, the single as well the total financing amount have increased significantly, and in 2022, this trend is still going strong.
According to the "Big Data Monitoring Report on the Development and Consumption Demand of China's Coffee Industry 2022-2023" released by iiMedia Consulting, the size of China's coffee market will reach 485.6 billion yuan in 2022. With the rapid rise of new brands and the continuous expand of the market, the market size is expected to reach 1 trillion yuan in 2025.
In the face of an increasingly intense competition environment, it remains to be seen whether COTTI COFFEE could replicate Luckin's success and once again break into the top of the market. As for the influx of capital, what are the changes in the current situation, future and consumer behavior of China's coffee market? Where are the opportunities to make money in the market?
I. Report introduction
In recent years, Chinese coffee culture prevails over the market, and coffee has become a fashion, which is highly chased after by consumers. Data shows that the market size of China's coffee industry reached about 381.7 billion yuan in 2021 and is expected to reach 485.6 billion yuan in 2022. With the change of the people's diet concept, China's coffee market is entering rapid-growth path, and the rise of new brands is faster. It is expected that the coffee industry will maintain a growth rate of 27.2%, and the scale of the Chinese market will reach 1 trillion yuan in 2025.
2. The core point
Market size: China's coffee industry is expected to reach 1 trillion yuan in 2025.
Data shows that the market size of China's coffee industry will reach 381.7 billion yuan in 2021 and is expected to reach 485.6 billion yuan in 2022.
User survey: 60% of Chinese consumers drink coffee every week, and nearly 20% drink coffee every day.
iiMedia Research 2022 research data shows 21.5% of the customers drink coffee every day, and nearly 60% of the surveyed people buy coffee every week. 39.3% of the surveyed consumers spend 50-100 yuan a month on average, an increase of 8.8% over last year. More than 70 percent of consumers surveyed prefer to buy coffee from a coffee shop.
Trend analysis: As the emergence of affordable coffee, smaller cities’ market has become a new battlefield for coffee enterprises.
At present, the competition in the coffee market in first-tier and second-tier cities is fierce. Famous brands such as Luckin Coffee and Starbucks have begun to break into third-tier and fourth-tier cities and launched affordable coffee to attract potential consumers. In order to increase market share, coffee enterprises should innovate new products for customers and establish deep and sound links with new users.
