China Coffee Market: Trends, Consumer Insights, and Growth Opportunities 2025

China’s coffee market is evolving rapidly, driven by shifts in coffee consumption, expansion of budget coffee shops, and growing influence of the middle class.

In 2025, market projected to exceed RMB 369.3 billion (≈ USD 51.8 billion), up from RMB 313.3 billion (≈ USD 43.9 billion) in 2024. Per-capita consumption: 22.24 cups annually, far below mature markets. Retail coffee prices: RMB 5–15 (USD 1-2)per cup. Winners rely on supply chain efficiency, digital engagement, and operational expertise.

Market Overview and Consumer Trends

Current coffee market:

• Affordable brands dominate: Luckin Coffee (26,000 stores) and Cotti Coffee (15,000 stores) lead the market, while smaller brands such as Xiaoka Coffee are growing rapidly, with growth rates exceeding 60%
• Premium brands contracting: Starbucks’ new store openings fell by 42%, and Costa Coffee closed 28 outlets.Moving from luxury indulgence to daily habit

Middle-class consumers: Key drivers of growth, integrating coffee into work, leisure, and social life

Health-conscious consumption:

• Zero-fat lattes
• Fruit-infused drinks
• Functional coffee beverages targeting younger, urban consumers

Digital and delivery:

• 100,000+ coffee stores on Taobao/Tmall (2024)
• 25.7% YoY growth in online coffee sales
• Social commerce and group-buy deals are crucial for sales

Competitive Landscape and Regional Expansion

Budget chains dominate: Low prices + franchise models + operational efficiency

Specialty coffee brands: Peet’s Coffee testing sub-brand Ora Coffee at RMB 9.9 (USD 1.5). Focus on quality, branding, and storytelling.

Supply chain strategy:

• Direct sourcing from Yunnan province and other coffee-growing regions
• Investments in the coffee cultivation industry to ensure quality and volume
• Advanced processing methods for consistent flavor

International entrants:

• ASEAN coffee (Malaysian durian, Vietnamese drip) entering Nanning, Hangzhou
• Increasing product diversity and competition

Coffee roasters: Domestic and international players focus on bean quality, roasting techniques, and flavor differentiation

Market Dynamics and Retail Trends

Rapid expansion: 63 new coffee shops per day, mostly budget chains

Price divergence: Coffee bean costs rising due to droughts and tariffs. Retail prices falling because milk is the main cost driver. Large chains leverage supply chain to maintain low prices.

New venues:

• Universities: 13.8% of Cotti stores, 8% of Luckin
• Airports, scenic spots, and hospital emergency departments

Digital & delivery:

• Food delivery essential for convenience
• Group-buy deals drive middle-class consumption

Consumer education:

• Awareness of brewing techniques, bean types, and roasting methods
• Benefits coffee roasters and specialty brands seeking differentiation

Outlook: Affordability, Supply Chain, and Coffee Culture

Era of affordability: Budget chains dominate; specialty coffee adjusts pricing.

Supply chain mastery: Key to survival. Sourcing from Yunnan province. Efficient logistics, inventory management, and cost control.

Entrepreneurial opportunities: Franchising with leading brands. Targeting niche channels (universities, hospitals).

Investor insights: Focus on coffee cultivation industry, processing methods, and emerging coffee roasters.

Consumer experience: High-quality, affordable coffee delivered conveniently. Reflects maturing coffee culture in China.

China’s coffee market in 2025 is defined by rapid growth, affordability, and evolving coffee culture through social media platforms like Xiaohongshu etc. Budget coffee shops dominate, expanding aggressively into urban centers, while specialty coffee adapts to changing consumer preferences. Chinese consumers, particularly the middle class, increasingly seek convenience, health-conscious options, and digital ordering via food delivery platforms. Success hinges on supply chain mastery, from sourcing in Yunnan province to roasting by skilled coffee roasters and implementing efficient processing methods.

For entrepreneurs and investors, understanding these dynamics is essential. Ultimately, value, accessibility, and operational efficiency will determine the winners in China’s booming coffee market. If you would like to know more, please feel free to contact us.