The Development Of Coffee In China

Aug 30, 2023

Coffee is a beverage made from roasted and ground coffee beans. As one of the three major beverages in the world, it is the main beverage popular in the world along with cocoa and tea. Coffee is made by coffee beans with various cooking appliances, and coffee beans refer to the nuts in the coffee tree fruit, which are roasted in a proper way. A cup of standard coffee should not be bitter. A qualified barista will rigorously perform every step of the coffee making, and the coffee presented to the customer will show various degrees of sweetness, acidity, and mellowness. Therefore, in order to present the most perfect effect, coffee will be accompanied by a lot of exquisite coffee cups such as hydro flask coffee mug, the office mug, camping mugs, etc.

 

 

Coffee Grown in Yunnan

Since coffee was introduced and grown in Wenchang, Hainan, China in 1898, coffee has entered a period of rapid development after more than 100 years. At the end of March 2014, in Yunnan Province, where coffee planting area and production account for more than 99% of China, coffee harvesting is nearing completion. Affected by the international market, after more than two years of "price winter", the purchase price of coffee beans soared in 2014, from 13 yuan per kilogram to 25 yuan.

 

Although the price surge has stimulated market confidence, in the 2013-2014 season, China's coffee production fell from 80,000 tons in the previous season to less than 60,000 tons. In the absence of large coffee brands and local brands, the pressure to cut production has made China's coffee industry more and more eager to "break through" from the origin of raw materials.

 

More than 99% of the output is China's largest coffee producing area.

According to coffee industry insiders, the price trend of Yunnan coffee in the past 20 years shows that there is almost a price cycle every 10 years. In 2010, the price of Yunnan coffee reached 41 yuan per kilogram, a record high. From 2012 to early 2014, affected by the decline in international coffee futures prices, the price was once as low as about 13 yuan per kilogram, and the coffee planting industry entered the "price winter" for two consecutive years.

 

At the end of January 2014, with the recovery of international coffee futures prices, Yunnan coffee prices also rose rapidly. "In the past February, international coffee prices created the largest monthly increase in 20 years, from 114 cents per pound on January 28 to 180 cents per pound on February 28."

 

9-3-glass thermos

 

Reasons for the Rapid Increase

There are probably three reasons for the rapid increase in coffee prices: one is the drought in Brazil, the world’s largest coffee producer, since the end of 2013, which is expected to affect coffee production; the other is that some coffee producing countries in Central and South America are affected by coffee rust, and coffee production is expected to decrease; thirdly, coffee futures have been in a long-term downturn. Coffee futures speculators intend to increase coffee prices and activate the coffee futures market.

 

Since 2014, Nestlé, Starbucks, etc., have increased their efforts to open up raw material producing areas in Yunnan. Yunnan small grain coffee has also been sold to more than 20 countries and regions including Europe, the United States, Japan, and South Korea. However, the coffee industry in Yunnan is generally in its infancy, and the industry "breakthrough" is not optimistic.

 

At present, China's coffee deep processing industry lacks large-scale integrated enterprises, and local coffee brands are even rarer, with a small domestic and foreign market share and market evaluation.

 

 

Coffee Choices of the Public

According to an online survey, 47% of netizens like to drink instant coffee, while 72% value coffee taste most. The habit of drinking coffee by Chinese people probably started after the 1990s, and now many urbanites have become dependent on coffee. Besides, the scale of coffee cup industry is gradually expanding. A large number of cups are available, such as stainless-steel mug, stoneware mugs, Starbucks state mugs, plastic tea cups and so on.

 

 

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