FDBusiness.com

Tea Still Most Consumed Hot Drink in China But Coffee Making Inroads

 Breaking News
  • Nomad Foods to Acquire Goodfella’s Pizza UK-based Nomad Foods, Europe’s largest frozen food producer, has agreed to acquire the Goodfella’s Pizza business of Green Isle Foods from Boparan Holdings (incorporating 2 Sisters Food Group) for approximately €225 million on a debt free, cash free basis. Green Isle Foods is Ireland’s largest frozen food producer and is headquartered in Naas, County Kildare. The [...]...
  • CMA Accepts Refresco’s Remedy Proposal The UK Competition and Markets Authority (CMA) has in principle accepted the remedy proposed by Refresco regarding the acquisition of Cott’s bottling activities. Completion of the acquisition is now anticipated on 30 January 2018. On 3 January 2018, the CMA decided that the acquisition of Cott’s bottling activities by Refresco raises potential competition concerns in the [...]...
  • Dairy Crest Appoints Tom Atherton as Deputy Chief Executive Dairy Crest has appointed Tom Atherton as Deputy Chief Executive with immediate effect. He retains his responsibilities as Group Finance Director. Tom Atherton. Since his appointment to the Board in 2013, Tom Atherton has taken on additional responsibilities including the chairmanship of Frylight, the strategic leadership of Dairy Crest’s Butters, Spreads and Oils business, and more recently [...]...
  • European Strategy on Plastic Waste Adopted The first-ever Europe-wide strategy on plastics, has been adopted. It is a part of the transition towards a more circular economy. It is designed to protect the environment from plastic pollution whilst fostering growth and innovation, turning a challenge into a positive agenda for the Future of Europe. There is a strong business case for transforming the way [...]...
  • Nestlé to Sell US Confectionery Business to Ferrero Nestlé has agreed to sell its US confectionery business to Ferrero, the third-largest company in the global chocolate confectionery market, for SFr2.8 billion ($2.8 billion) in cash. Nestlé’s 2016 US confectionery sales reached about SFr900 million. The transaction is expected to close around the end of the first quarter of 2018 following the completion of [...]...

Tea Still Most Consumed Hot Drink in China But Coffee Making Inroads

Tea Still Most Consumed Hot Drink in China But Coffee Making Inroads
August 20
08:59 2015

Drinking tea has a long history in China and while the hot brew is still the most popular drink in the country, a new report from Canadean finds that coffee is expanding its market share rapidly. In 2014, the Chinese consumed 1.28 billion kilograms of hot drinks, with hot tea accounting for 82% of the total volume. While hot coffee holds a comparatively small share of the Chinese hot drinks market (5.7%), it will register the highest growth in volume terms between 2014 and 2019 with a CAGR of 15.4%. Hot tea, on the other hand, will only grow at a CAGR of 5.6% over the same period. Overall, hot coffee is forecast to gain market share in China, from 5.7% in 2014 to 8.4% in 2019, while the share of hot tea will decline.

According to Canadean, hot coffee is not only the fastest growing in volume, but also in value terms. The Chinese hot coffee market – worth US$2.1 billion in 2014 – is expected to reach US$4.5 billion by 2019. This means the value of the Chinese coffee market will increase at a CAGR of 16.5%. Tea is forecast to reach a market value of US$27.6 billion by 2019, up from US$16.5 billion in 2014, registering a CAGR of 10.8%. Kirsty Nolan, analyst at Canadean, says: “Although tea is the traditional drink of choice in China, Western coffee culture is taking hold. More Chinese consumers are socialising in sophisticated coffee shops and are trying out the varying tastes and premium nature of coffee.”

Instant coffee accounts for 84% of the coffee market in China, making it the coffee of choice for the average Chinese consumer. Roast and ground coffee together with coffee beans only come up to 16% of the market. Overall, the Chinese coffee market is highly consolidated, with the top two brands – Nescafe and Maxwell House – holding a market share of over 80%. KirstyNolan adds: “Despite consolidation in the Chinese coffee market, consumers are still looking for quality and variety. This means that in due course, the market will open up to smaller brands, offering consumers the quality and exclusivity they are seeking from coffee.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • January 17, 2018Anfas Food Product
  • January 19, 2018International Green Week
  • January 20, 2018Sigep Rimini
  • January 24, 2018International Bulk Wine and Spirits Show (IBWSS)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements