The Chinese have a growing demand for coffee

The Chinese have a growing demand for coffee

China has a tradition of drinking tea, but coffee consumption is growing rapidly in the country. This is a great opportunity for Vietnamese coffee.

According to Ms. Nguyen Thi Thu Thuy, Deputy Director of the Export Support Center (Department of Trade Promotion, Ministry of Industry and Trade), currently, tea is still a traditional drink of China, but the demand for coffee consumption China’s coffee tends to continue to increase, especially in developed urban areas.

In the Chinese market, instant coffee is taking a large share thanks to its convenience in use. Besides, China’s social development, changing lifestyle and acceptance of new cultural trends by Chinese consumers also contribute to increasing demand for instant coffee in the country.

According to market research firm Mordor Intelligence, the Chinese coffee market is forecasted to grow at an average of 10.42% per year between 2022 and 2027.

Meanwhile, according to the China Coffee Association (CCAB), coffee consumption in the country is growing at an average annual rate of 15%. Although China is a country that has suffered significant consequences from the Covid-19 pandemic, this has not reduced consumer demand for coffee.

Duong Ji Dong, Chairman of the Culinary Association of Chongqing City (China), said that the Covid-19 epidemic situation in 2021 has negatively affected the economy, but the beverage market in Chongqing Khanh is still developing stably. In particular, plant-based beverages grow very strongly because of their rich, delicious taste, ensure health, and are suitable for many consumption environments, from travel to family use. , office, office, conference, party…

Because the instant coffee market in China is developing very strongly, many experts believe that Vietnam should promote instant coffee exports to this market.

According to Mr. Ly Thanh Hai, China Market Business Development Manager of Trung Nguyen Legend Group, Trung Nguyen coffee has entered the Chinese market for more than 10 years, mainly instant coffee.

Thanks to building a distribution system in China including 15 importers, 300 distributors, 30,000 offline selling points and thousands of online stores, Trung Nguyen Legend instant coffee has an important position in the market. this school.

Specifically, each year about 800 million cups of G7 coffee are sold in China. For every 18 cups of coffee of any brand sold in the Chinese market, there will be 1 cup from Trung Nguyen Legend’s brands. With 15 million regular users, G7 instant coffee is the largest instant coffee brand in China.

However, in order to conquer the Chinese market, Vietnamese coffee enterprises need to study the market well and have an appropriate approach strategy.

Mr. Ly Thanh Hai said that the first and most important thing for foreign businesses when planning to enter the Chinese market is to prepare psychologically. Because despite being a market with great purchasing power, China is no longer an easy market. Even Chinese consumers are quite demanding in terms of experiencing new products. Therefore, without regular product improvement, it will be difficult for businesses to conquer consumers and develop long-term in this market.

Besides, enterprises need to clearly define that participating in the Chinese market is a long-term journey and investment, so they must prepare a business plan and sufficient resources for a minimum period of 3-5 years.

Equipping knowledge about the local market is also essential. This can be done through the use of local staff. For example, Trung Nguyen Legend’s Shanghai office currently has more than 100 employees, 95% of which are Chinese. The local staff will help businesses save a lot of time for project implementation, quickly grasp the market, avoid legal mistakes, connect many partners and especially enjoy many preferential policies of local.

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