MILAN – According to Coffee in China report from Euromonitor, Nestlé continued to hold the leading position in the China coffee market, in terms of off-trade value sales with 72% share.
The company’s success can be attributed to its long-term research and development as well as frequent marketing activities and wide distribution coverage. The company also benefited from high levels of brand reputation in China. Nestlé also witnessed the largest increase in value sales in 2012.
In 2012, the total volume growth of coffee was 10%, which was slightly slower than that in the previous year.
Although China witnessed economic decline in the review period, the boom in the coffee culture in many cities helped to spur consumer interest in coffee and stimulated consumption growth.
The development of coffee shops, including chained and independent cafés, spread the coffee culture, which is a very popular lifestyle in urban areas.
Total volume sales of coffee are expected to increase by a CAGR of 9% over the forecast period.
The per capita coffee consumption is expected to continue increasing with growing urbanisation as well as busier lifestyles, which will continue to promote the rise of the coffee culture in China.
In addition, manufacturers are expected to introduce more new product to stimulate the market. The growing coffee culture in the country through the opening of cafés will continue to encourage sales of coffee in on-trade channels as well as off-trade channels.
In addition, rising income and consumer sophistication over the forecast period are likely to result in the growing acceptance of premium coffee, which will boost value growth of coffee sales.
