Coffee Consumption Habits in China
Traditionally, tea has been the national beverage in China. This doesn’t look like it’s going to change soon. Chinese consumers love their tea. Despite coffee elbowing its way through the market in recent years, coffee shops still find themselves selling blends of coffee and tea.
The most common coffee product in China today is instant coffee. It is easy to make and readily available in shops around the corner in every neighborhood at low prices. Despite this, a different coffee product has emerged and experienced fast growth; coffee capsules.
To satisfy the ever-growing demand, coffee companies in China have had to expand their product portfolios. Coffee capsules provide an excellent way for them to attract new customers. Coffee capsules offer the efficiency of instant coffee with higher quality coffee.
China’s Coffee Drinking Habits
Large Western coffee companies started opening coffee shops in China in the 80s and 90s. People born during this period grew up in an economy where coffee shops existed everywhere in the country.
This experience coincided with many young people born during the same period traveling abroad (to Western countries) for college education. Western countries like America and Britain have a high coffee consumption rate (over 250 cups per person per year).
Coming back home, they brought the Western culture of drinking coffee. Over time, coffee drinking became a status symbol. It became cool, and its popularity continues to soar.
The Adoption of Single-Serve Coffee Capsules
Coffee capsules weren’t always popular in China. Coffee drinking earned a reputation for being a highly social activity. Most people preferred drinking coffee at coffee shops or other outdoor venues where they could interact with others.
This changed when the COVID-19 pandemic emerged and forced everyone to stay indoors. Going out to coffee shops to hang out with friends and meet new people was no longer an option. But still, the Chinese people wanted to drink coffee.
To quench their thirst for coffee, people turned to homemade solutions, and what did they find? Coffee capsules. Single-serve coffee capsules provide a way of making a high-quality cup of coffee fast and easy. What’s more, they exist in different forms and flavors.
The demand for coffee capsules and other capsule fillings surged during the COVID pandemic. People were exploring new ways of enjoying coffee and wouldn’t stop at regular coffee. Businesses made other products available in capsules and pods too.
Capsule Filling Options
Coffee is one of many products that are packed in capsules and pods. Businesses have gotten creative and keep finding more ways to help their clientele consume their products. As with regular coffee, large organizations like Nestle dominate the capsule coffee market through their Nespresso brand.
Fewer capsule-filling options exist in China compared to advanced (coffee-wise) markets like Europe and North America. Most pods you are likely to come across are filled with tea. A few businesses are attempting to expand consumers’ options in pods and capsules, but there is still a long way to go.
Final Thoughts: Coffee consumption habits in China
The Chinese population is consuming more coffee than ever before. Investments from large organizations like Nestle and Starbucks are finally paying off. Drinking coffee has become a lifestyle. More people are buying into the craze. It is the perfect time for private label businesses to enter the industry.
The Asia-Pacific region is the fastest-growing market in capsule coffee consumption and is expected to become one of the largest in a decade. Big brands also dominate it at the moment.
In the face of significant economic development, more people have access to more disposable income and are willing to spend it on coffee equipment and coffee. We are also witnessing an upwards trend in the use of tea capsules in China for tea preparation at this time.
