Summary of Challenges and Opportunities in China’s Coffee Market

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Challenges and Opportunities in China’s Coffee Market summary
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Traditionally, China is a nation of tea drinkers, but the Chinese are beginning to grow fond of coffee. Western brands such as Nestlé, Maxwell, Starbucks, Costa and McDonald’s and KFC are dominating the market. (Korean brands such as Caffé Bene, Maan Coffee and Zoo Coffee have come and gone.) Domestic brands are only beginning to stake their claims in the much-hyped new retail segment. In an op-ed piece published on Huxiu.com, venture capital firm Cyanhill Capital jots out the current landscape of China’s coffee market. Though the tips are worth considering, more in-depth analysis would make the piece more compelling. Nonetheless, getAbstract recommends reading this article with your next coffee.

In this summary, you will learn

  • Why a typical coffee shop can’t survive in China despite coffee’s blossoming popularity, and
  • How to start and sustain a retail coffee business in China.
 

About the Author

Cyanhill Capital is a venture capital investment firm focused on consumer upgrades, technology, media, telecom and entertainment. 

 

Summary

Coffee is the world’s second-most traded commodity but isn’t widespread in China. That might soon change. According to the International Coffee Organization, China’s annual coffee consumption is growing at a rate of 15%, compared with a 2% world average. As world brands like Starbucks penetrate deeper into Chinese consumer culture, this growth could reach 30% in China’s bigger metropolises.