China's coffee map is quietly transforming. Without limiting within Starbucks and Luckin, a growing number of coffee lovers are finding their soul habitat in local cafes.
A large batch of local coffees are on the rise as capital puts its attention on them. Public data shows that this year, obscure local coffee brands such as WAI X COFFEE from Ningbo, Coco.Juliet from Shaoxing, DOC and RUU from Changsha, FELICITY ORIGIN from Dongguan and BESTAR COFFEE from Suzhou, have completed financing in succession.
WAI X COFFEE
It seems that the local coffee market has been "activated" overnight. These coffee brands with distinct local characteristics have become a new force in the coffee market, influencing people's coffee consumption habits and reshaping the landscape.
The local market for coffee is showing robust growth momentum. But what are the drivers for the rapid expansion of local coffee market?
1. Local coffee is riding on the wave of opportunities.
China's coffee market is transforming from blind imitation to independent growth. Once-Luckin tried to build itself "Chinese Starbucks". At present, China's coffee has managed to explore its own growth path. Apart from comfortable consumption experience, Chinese consumers think highly of the convenient and fast mode of payment; and most Chinese consumers prefer latte to pure American style. The localisation of Chinese coffee means that it has found a growth driver fitting Chinese realities.
The bright prospect and the promotion of the supply chain are the two key factors valued by capital. SkyEye, a business information inquiry platform, shows that from January to August 2022, a total of a total of 14 financing events was completed in the coffee field, with overall amount up to 1.235 billion yuan.
2. Local coffee fits the "niche" gene of coffee.
It is reckoned by many Chinese that coffee has a "niche" trait in its nature. Even though instant coffee and takeaway coffee have become popular nowadays, coffee still represents a relatively niche and quality life in the minds of the Chinese people.
There is a coffee brand called LIT ESPRESSO in Nantong. It adds the suffix "NTC", the abbreviation of Nantong City, to the shop’s name, so the full name of the shop is "LIT ESPRESSO_NTC". At the same time, it also introduces its tagline of "Understand a city by understanding a cup of coffee".
3. The market explodes, increasing the confidence of local brands to go out.
According to iiMedia Research, China's coffee market size is approximately 381.7 billion yuan in 2021, expected to rise at a growth rate of 27.2%, much higher than the global average growth rate of 2%. The high growth in the size of the coffee industry has stimulated a rapid increase in the entire coffee industry chain.
"This year, we will first fully tap into Ningbo’s market, and then we will operate our business in Zhejiang Province", the CEO of WAI X COFFEE said.
The explosion of the whole coffee market boosts the confidence of local brands to go out from city; and the capital influx redoubles the prosperity in coffee market.
Our Response
Against this background, BODUO International makes its fast and targeted response to the arrival of “local coffee trend” through promoting innovation and increasing the input of material resources. Over the past few years, BODUO International has kept rolling out different flavors of coffee, for example Sea Salt＆Grapefruit Ice Coffee, Jasmine Latte, Lychee Ice Americano, Creamy Rose Latte, Creamy Blue Velvet Latte, Cold Brew Orange Coffee, Cold Brew Grape Coffee and so on.
Even all of them are a member in coffee family, they are different in many aspects. Creamy Rose Latte are made of fresh milk, red rose syrup and well-selected liquid coffee concentrate with cheese foam on the top. While Lychee Ice Americano is refreshing fruit coffee and there is no milk in it.
Future
Moving forward, BODUO International will persistently bring our clients more quality, less expensive products. It is rooted in our minds to put food safety in the first place. And we welcome all of people interested at milk tea stores to contact us and are very grateful for everyone who has supported us.
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