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MILAN – China now consumes more coffee than Italy, the home of espresso and one of the world’s largest coffee-consuming countries. According to a recent USDA report, Chinese consumption reached 6 million bags in 2024, compared to around 5.5 million in Italy. Of course, we are talking about aggregate data, which in China’s case, is spread over a population of over 1.4 billion, compared to just under 59 million in Italy.
Nevertheless, the data is still impressive, especially considering that consumption has increased approximately threefold in volume in the space of fifteen years, from around 2 million bags in 2010.
Even the per capita figure, although still very low, has grown considerably, from 3-4 cups per year in the early 2000s to 22 cups in 2024.
The fact that the average Chinese person drinks less than two cups of coffee per month indicates that there is still enormous room for growth in consumption
This is particularly evident when these figures are compared with those recorded in more mature Asian markets, including South Korea (405 cups) and Japan (207 cups). Going forward, continued urbanization and the growing influence of Generation Z consumers is expected to further support China’s transition into one of the world’s major coffee-consuming markets, says the report. Considering the above data, we could say this is already the case.
Consumption growth is expected to remain strong at approximately 15% annually, positioning China among the fastest-growing coffee markets globally
But beyond the numbers, it is equally important to highlight the growth of a unique consumer culture, which has drawn and continues to draw on Western models, but which has also been able to evolve, especially in recent years, towards distinctive patterns and models.
This is true both in terms of market structure and consumption habits. All this has been supported by an increasingly organised and high-quality roasting industry and it has been driven by Guochao (national trend), the new nationalism-driven consumption trend, favoring homegrown labels.
Local media use the number of coffee stores to define the maturity of coffee culture amongst different cities in China, says the report.
“A high number of coffee shops in a Chinese city indicates urbanization, rising disposable incomes, evolving consumer trends, and strong economic vitality driven by a young, cosmopolitan population.”
The importance of technology
The report highlights that e-commerce is an essential starting point for building brand awareness in China, particularly among young people. Emerging brands often use online channels to enhance brand recognition and then gradually penetrate offline markets, achieving a seamless integration of online and offline sales.
With China’s well developed online retail platforms such as Taobao or Tmall, JD.com, Douyin, as well as retail stores’ online apps, consumers enjoy easy shopping experiences and can easily compare prices.
Online shopping is mostly used by younger consumers, comparing multiple prices points across the platforms. Still, consumers often utilize both online and traditional brick-and-mortar retail outlets, depending on their needs.
The role of vending
As with other major Asian markets, ready-to-drink (RTD) beverages are a key driver of consumption in China. The RTD coffee beverage market in China is estimated to be worth around $4 billion. By 2024, China accounted for 14.2% of the global RTD coffee market.
Analysts project growth at a CAGR of 6.3% between 2025 and 2030, which would bring the segment’s value to over $6 billion by the end of the decade.
Chinese consumers have particular tastes
Chinese consumers, especially the younger generation, view coffee as a versatile and fashionable drink that can be reinvented in unique and personalised ways. This leaves room for the strangest and most bizarre combinations, some of which would leave Western consumers perplexed, to say the least.
Here are some examples
Fruit and floral-infused coffees: Drinks incorporate fruits such as osmanthus, lychee, orange and other flavorful fruits o Tea-infused coffee: Coffee blend with traditional Chinese teas, such as oolong.
Spiced coffee: Cinnamon, star anise, fennel seeds, and ginger.
Traditional Chinese wellness ingredients: Chinese wolfberry (goji berries), Chinese red dates, Longan, birds’ nest, or collagen.
Chinese liquor – flavored: Luckin Coffee’s famous PR collaboration with liquor brand Kweichow Moutai created a viral Chinese baijiu-infused latte, which sold millions of cups. Other brands, such as Manner Coffee and Peet’s Coffee, have launched their own coffee cocktails with whisky and other liquors.
Chewy additions: Similar to bubble tea, some coffee put in innovative ingredients such as peach gum and taro paste to provide a chewy texture.
“At the same time, for non-specialty coffee, intensifying price competition has become a defining feature of the market. Previously dominant international brands now face mounting competitive pressure as local players expand rapidly. These pricing dynamics, combined with rapid product innovation, have made China’s coffee market one of the most competitive and distinctive globally,” concludes the report.
