CHINA, the world’s number one in tea production is one of the top 20 global coffee producers today. Almost all (more than 90%) of China’s coffee is produced in Yunnan, where Arabica is the sole variety grown.
In 1999, little over a decade following the resurgence of the coffee production sector, the first Starbucks store in China opened in Beijing. Now there are almost 2,000 Starbucks locations nationwide, and the enterprise recently announced plans to open an additional 3,000 stores in China within the next few years.
While, worldwide, coffee consumption is growing at a rate of 2% every year, the International Coffee Organization registered the growth in China at 16%. This may also be thanks to a disposable income growth of 9.6% in the middle class, registered from 2018 to 2020 by a study. Today’s young adults see adopting Western culture, including imbibing coffee, as a sort of status symbol and a form of self-expression. Coffee consumption in China has skyrocketed in recent years, nearly tripling in a span of just four years. Growth of international chains like Starbucks and the UK’s Costa Coffee has likewise given rise to an explosion of local cafes dotting the streets. Shanghai alone is home to an estimated 6,500 coffee shops. The average cup of coffee costs 18-40 RMB (roughly 3-6 USD), which could purchase you a whole meal or a month’s internet. Growing competition between coffee shops and increasing local production may also result in lower prices in the years to come, making daily coffee more affordable.
With Alibaba’s food delivery platform partnership, Starbucks’ delivery service offers delivery in 17 cities in the country in 1,100 stores. After an order is made, it is put in packaging with a tamper-proof seal and spill-proof lid. At the same time, delivery containers keep products at their proper temperatures.
