Coffee Market Scenario

Coffee steams in China

- The Straits Times - Piece of news on the increase of coffee diffusion in China during the last decade. Consumption is growing at an astonishing rate of 1


- The Straits Times -

Piece of news on the increase of coffee diffusion in China during the last decade. Consumption is growing at an astonishing rate of 15 per cent every year, compared with the global average of 2 per cent, according to the London-based International Coffee Organisation.

The bitter brew is gaining popularity in land of tea drinkers.

Beijing - There's more brewing in the Chinese pot these days than tea leaves. A decade after Starbucks entered China, a coffee culture is emerging in the land of tea drinkers as the country grows more affluent.

Consumption is growing at an astonishing rate of 15 per cent every year, compared with the global average of 2 per cent, according to the London-based International Coffee Organisation.

This is partly due to the fact that China is starting from a lower base. On average, each Chinese drinks just three cups a year, compared with the 500 to 700 cups an American drinks.

But still, as is often the case, analysts see enormous potential because of the size of the Chinese market.

'If each Chinese drinks just half a cup a day, we will control the entire global market,' Mr Qian Jiaying, assistant secretary of the trade grouping China Coffee Association Beijing, told The Sunday Times.

Credited with the rise of coffee in China - more than 100 years after the bitter brew was first brought to Chinese port cities - is the spread of the Western cafe culture. From a single outlet in 1999, Starbucks now has 390 stores on the mainland, while Britain-based Costa Coffee, which started serving Chinese customers in 2006, has opened 33 stores, and is planning to hit 300 by 2011.

Young, white-collar Chinese enjoy a quiet place to read and hang out with friends, while executives see its surroundings as ideal for talking business.

'It's a nice place to sit down and chat. It's also more convenient than a restaurant, where you have to wait to be served,' said Mr Du Yuan, 25, who works for a consultancy in Beijing. He visits cafes two to three times a month.

Local entrepreneurs are entering the fray too. Mr Qi Ming, 31, was a lecturer at the Beijing Foreign Studies University, but he decided to set up a cafe, Blend Coffee, in downtown Beijing two years ago.

He has also published a book on coffee and started a school that has trained more than 300 students on the finer points of coffee tasting.

Chinese coffee drinkers have different tastes compared with those in the West. Said Mr Qi: 'Many Westerners like to drink pure, black coffee. But coffee lovers here aren't used to the bitter taste, so they are more likely to pick cappuccino or latte.'

Palates vary in different parts of China too. Northerners appreciate a stronger brew, whereas southerners favour theirs lighter, sometimes with a sour tinge, said China Coffee Association Beijing's Mr Qian.

And while many in the West like a morning jolt, most Chinese prefer their shot of caffeine in the afternoon, or even at night. Said Mr Qian: 'They don't have the time to visit cafes in the morning, and very few Chinese families own coffee makers.'

But at 20 to 30 yuan (S$4 to S$6) a cup, coffee is still pricier than what most Chinese can afford on a regular basis. Said Mr Du: 'The prices will probably have to come down a little before coffee drinking can become more widespread in China.'

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