Insert Cover Image using Slide Master View                               Do not distortCoffee Market in ChinaFebruary 2012
Executive Summary               Coffee is one of the fastest growing segments of the beverage sector in China projected t...
•Market Overview  • Global  • China•Supply Chain•Exports and Imports•Drivers & Challenges•Trends•Mergers & Acquisitions•Co...
Global coffee production with a greater emphasis on  ‘Arabica’ variety is expected to witness a steep rise Global Coffee M...
Despite a relatively low share of coffee sales Chinese coffee  market is expected to witness a robust growth Domestic Coff...
Chinese coffee market accounted for a trade surplus of over  USD  y mn in 20‐‐ Coffee Market – Exports under HS Codes     ...
In volume terms, 20‐‐ witnessed a trade surplus of mere x  tons in China coffee market Coffee Market – Exports under HS Co...
Drivers & Challenges – Summary  Drivers                                                         Challenges  Rising Populat...
Rising population and rapid urbanization to act as the major  growth driver for the coffee market in China Rising Populati...
Rising disposable income leading to greater spending  increase demand from branded retail outlets Rise in Disposable Incom...
Rapidly changing lifestyle is a major contributor to the  growth of coffee market in China Changing Lifestyles            ...
Low level of per capita consumption provides a huge  opportunity for growth to the coffee market in China Low Per Capita C...
Favorable demographics in China to lead to the growth of  the coffee market Young Population Drive Coffee Demand          ...
High cost of labour is one of the major challenges faced by  the coffee market in China Rising Labour Costs               ...
Trends – Summary                           Retail Chain Expansion                                    Key                  ...
High end retail chain expansion has emerged as a major  trend in the coffee market in China Retail Chain Expansion • Findi...
Coffee market in China is witnessing a rapid rise in demand  for instant coffee Rising Demand of Instant Coffee • Finding ...
Major Public Companies ‐ Summary   Net Profit 45,000                  Size of the Bubble represents Market  40,000        ...
Domestic Company – Company 1 Company Information                                                            Locations – Ch...
Domestic Company – Company 1 Financial Snapshot                                                                   Key Rati...
Domestic Company – Company 1 Key Business Segments                                                         Key Geographic ...
Growing popularity of instant coffee and rapid expansion of retail outlets will lead to robust growth of coffee market    ...
Thank you for the attentionThe Coffee Market – China report is a part of Netscribes’ Food and Beverage Industry Series. Fo...
Upcoming SlideShare
Loading in...5

Market Research Report : Coffee Market in China 2012


Published on

For the complete report, get in touch with us at :

The Chinese coffee market is poised to witness phenomenal growth owing to rapid retail coffee chain expansion and growing popularity of instant coffee.

The report begins with the global coffee market overview comprising the global market size and projected growth in production till 2012. Global coffee production volume followed by key regional segments and variety of coffee forms a part of the global coffee market scenario section. The domestic coffee market overview provides projected growth of coffee production in China till 2020. Domestic market overview also includes the split share of the hot drinks market in China covering tea, coffee and others. Major coffee producing hubs in China are also highlighted in this section. Furthermore, the report delves into the coffee supply chain beginning from production of coffee to retail sales.

Export-imports chapter lays down the trade figures of coffee under specific HS codes for the period between 2006 and 2010. It provides export-import figures both in terms of volume and value with a country-wise split.

Key drivers of the industry explain the factors influencing the growth of coffee market in China. Some of the drivers include growth in population and urbanization, rising disposable income, changing lifestyle, young population driving the coffee demand and low per capita consumption. Coffee industry also faces some challenges that impede its development and growth prospects in China. Some of the major challenges identified includes rising labour costs, taxes and duties and health hazards.

Emerging trends that are of marked importance to the coffee market in China are also described including factors such as coffee retail chain expansion, rising demand for instant coffee and investment plans. The report also covers key mergers and acquisition deals information that have taken place in the Chinese coffee market during 2009-11.

The competition section outlays the competitive landscape of the coffee market in China briefing some of the key facts and figures about the domestic and foreign players operating in the market. The section provides a three dimensional analysis of key players’ incomes, profits and market capitalization. The report also features brief profiles of major domestic and foreign players in the market and a snapshot of their corporation, financial performance, business highlights and their product portfolio, providing an insight into the existing competitive scenario.

Some of the key industry relevant statistics covered in the report includes global coffee market size, global coffee production volumes, domestic market size, domestic coffee production figures, export-import figures, rise in total population and urbanization rate, coffee consumer base, per capita urban disposable income, per capita coffee consumption and share of young population.

Key takeaway section summarizes the entire m

Published in: Business, Technology
  • Be the first to comment

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Market Research Report : Coffee Market in China 2012

  1. 1. Insert Cover Image using Slide Master View Do not distortCoffee Market in ChinaFebruary 2012
  2. 2. Executive Summary  Coffee is one of the fastest growing segments of the beverage sector in China projected to  grow with a CAGR of x% to y tons by 20‐‐ from z tons in 20‐‐ Market  Low coffee consumption at only 5 cups per capita per year provides robust growth  opportunity for coffee in China Drivers: Challenges:  Rising Population and Urbanization   Rising Labour Costs  Rising Disposable Income  High Taxes and Duties Drivers &   Changing Lifestyles  Health HazardsChallenges  Young Population Drive Coffee Demand  Low Per Capita Consumption  Retail Chain Expansion Trends  Rising Demand of Instant Coffee  Investment Plans Major PlayersCompetition Company 1 Company 2 Company 3 Company 4 Company 5 Company 6 COFFEE MARKET IN CHINA 2012.PPT 2
  3. 3. •Market Overview • Global • China•Supply Chain•Exports and Imports•Drivers & Challenges•Trends•Mergers & Acquisitions•Competition•Key Takeaway COFFEE MARKET IN CHINA 2012.PPT 3
  4. 4. Global coffee production with a greater emphasis on  ‘Arabica’ variety is expected to witness a steep rise Global Coffee Market ‐ Overview Growth in Coffee Production • Global coffee production is expected to increase to x  mn bags X% mn (y kg) bags by 20‐‐ 150 x2 x4 x1 x3 • South America accounted for z mn bags of the global  100 coffee production in 20‐‐ • Global coffee production is dominated by the Arabica  50 variety of coffee 0 • Arabica coffee accounted for x% of the coffee produced  20‐‐ 20‐‐ 20‐‐ 20‐‐e in 20‐‐ Production by Variety Regional Production (20‐‐) A B mn bags mn bags 60 z4 100 x1 x3 80 x2 x4 z2 40 60 y1 y2 y3 y4 40 20 z3 z1 20 0 0 A B C D 20‐‐ 20‐‐ 20‐‐ 20‐‐Source: COFFEE MARKET IN CHINA 2012.PPT 4
  5. 5. Despite a relatively low share of coffee sales Chinese coffee  market is expected to witness a robust growth Domestic Coffee Market ‐ Overview Coffee Market Growth ‐ Production • Coffee market in China is expected to grow from x  ‘000 tons thousand tons in 20‐‐ to y thousand tons by 20‐‐ x2 Coffee demand in China is increasing at a rate of z% to y%  300 Z% per year compared to a a world average of mere x% 200 • X Province is the major coffee growing region in  China producing only Y variety of coffee 100 X accounts for y% of the coffee bean production in China x1 _ Z Province is the major producer of X coffee with an annual  0 production of y tons 20‐‐ 20‐‐e Coffee Production Hubs in China Hot Drinks Market Share (20‐‐) x1 x3 A B C x2 X ZSource: COFFEE MARKET IN CHINA 2012.PPT 5
  6. 6. Chinese coffee market accounted for a trade surplus of over  USD  y mn in 20‐‐ Coffee Market – Exports under HS Codes USD mn Countrywise Segmentation 150 Y% Z% Country 1 x8 Country 2 Country 1 is the largest  x4 Country 3 100 x4 importer of coffee  x3 x5 x6 x7 Country 4 accounting for x% of x2 x4 x1 x1 Country 5 China’s coffee exports 50 x3 Country 6 Country 7 0 x2 Country 8 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ Coffee Market – Imports under HS Codes Countrywise Segmentation USD mn Y% Z% Country 1 80 y5 Country 2 y3 y8 Country 1 is the largest  Country 3 exporter of coffee to  60 y4 y6 y2 Country 4 China accounting for x%  y1 y5 y7 40 y4 y1 Country 5 of China’s coffee  Country 6 imports 20 y3 Country 7 0 y2 Country 8 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐Source: COFFEE MARKET IN CHINA 2012.PPT 6
  7. 7. In volume terms, 20‐‐ witnessed a trade surplus of mere x  tons in China coffee market Coffee Market – Exports under HS Codes Countrywise Segmentation ‘000 tons 40 Y% Coffee export volumes   x4 x5 x6 remained almost stagnant  30 Country 1 x3 x5 during 20‐‐ ‐20‐‐, however  x1 x2 x4 Country 2 20 registered a growth of x%  x3 x1 Country 3 value wise, indicating price  10 Country 4 increase Country 5 0 x2 Country 6 2006 2007 2008 2009 2010 Coffee Market – Imports under HS Codes Countrywise Segmentation ‘000 tons Y% Z% 40 y5 y5 y6 Country 1 Coffee import volumes   30 y3 y4 Country 2 rose by x% between 20‐‐ y2 y3 y4 y2 y1 Country 3 and 2010 attributing to a  20 Country 4 rise in demand 10 Country 5 0 y1 Country 6 2006 2007 2008 2009 2010Source: Note: COFFEE MARKET IN CHINA 2012.PPT 7
  8. 8. Drivers & Challenges – Summary Drivers Challenges Rising Population and Urbanization  Rising Labour Costs Rising Disposable Income Taxes and Duties Changing Lifestyles Health Hazards Young Population Drive Coffee  Demand Low Per Capita Consumption COFFEE MARKET IN CHINA 2012.PPT 8
  9. 9. Rising population and rapid urbanization to act as the major  growth driver for the coffee market in China Rising Population and Urbanization  Impact • Finding 1 • Finding 2 • Finding 3 • Finding 4 Rise in Population Increase in urbanization  leads to growth of the  mn Z% coffee market   1,500 z1 z2 z3 z4 1,000 x1 x2 x3 x4 A B 500 y1 y2 y3 y4 0 20‐‐ 20‐‐ 20‐‐e 20‐‐eSource: COFFEE MARKET IN CHINA 2012.PPT 9
  10. 10. Rising disposable income leading to greater spending  increase demand from branded retail outlets Rise in Disposable Income Impact •Finding 1 •Finding 2 •Finding 3 •Finding 4 Urban Disposable Income Urban Consumer Spending USD bn USD bn x3 20,000 5,000 y3 Z% 15,000 4,000 Z% x2 3,000 10,000 y2 2,000 5,000 x1 1,000 y1 0 0 20‐‐ 20‐‐e 20‐‐e 20‐‐ 20‐‐e 20‐‐eSource: COFFEE MARKET IN CHINA 2012.PPT 10
  11. 11. Rapidly changing lifestyle is a major contributor to the  growth of coffee market in China Changing Lifestyles Impact • Finding 1 • Finding 2 • Finding 3 • Finding 4 Share of Spending % A B 100% 80% x1 x2 60% 40% y1 20% y2 0% 20‐‐ 20‐‐eSource: COFFEE MARKET IN CHINA 2012.PPT 11
  12. 12. Low level of per capita consumption provides a huge  opportunity for growth to the coffee market in China Low Per Capita Consumption Impact • Finding 1 • Finding 2 • Finding 3 Per Capita Coffee Consumption China’s per capita coffee  consumption is the lowest  offering substantial  No. of  Cups opportunity for growth x1 1,500 x2 x3 x4 x5 1,000 x6 x7 x8 500 x9 x10 x11 x12 0 Finland Sweden Netherlands Norway Denmark Austria France Germany USA Japan Korea ChinaSource: Coffee Consumption = Per capita per year COFFEE MARKET IN CHINA 2012.PPT 12
  13. 13. Favorable demographics in China to lead to the growth of  the coffee market Young Population Drive Coffee Demand Impact • Finding 1 • Finding 2 • Finding 3 Demography ‐ Age Split (20‐‐) Major Attractions of Coffee Outlets A B C x1 A B C Young   population is  x3 the primary  target of the  Major Purposes Served x2 coffee retail  99% outlets in  China X YSource: International Coffee Organisation COFFEE MARKET IN CHINA 2012.PPT 13
  14. 14. High cost of labour is one of the major challenges faced by  the coffee market in China Rising Labour Costs Impact • Finding 1 • Finding 2 • Finding 3 Labour Costs – Emerging Asia 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 USD Country 1 x1 Country 2 x2 Country 3 x3 Xxx Country 4 x4 Country 5 x5 Country 6 x6 Country 7 x7 Country 8 x8 Country 9 x9Source: Note: :Per capita Average Annual Salary has been considered  COFFEE MARKET IN CHINA 2012.PPT 14
  15. 15. Trends – Summary  Retail Chain Expansion Key  Trends Rising Demand for Investment Plans  Instant Coffee COFFEE MARKET IN CHINA 2012.PPT 15
  16. 16. High end retail chain expansion has emerged as a major  trend in the coffee market in China Retail Chain Expansion • Finding 1 • Finding 2 Major Coffee  outlets to expand  • Finding 3 their operations in  • Finding 4 the China market Starbucks Expansion Plan Growth of Retail Segments (20‐‐) Outlets % Retail food sales is one of  x2 the highest growing  1,500 40 x2 segment Z% 30 x3 x4 1,000 x1 x5 20 x6 x1 500 10 x7 0 0 20‐‐ 20‐‐e Total  Jewelry Clothes Food Electronics BuildingFurniture RetailSource: Note: COFFEE MARKET IN CHINA 2012.PPT 16
  17. 17. Coffee market in China is witnessing a rapid rise in demand  for instant coffee Rising Demand of Instant Coffee • Finding 1 • Finding 2 Rising Popularity of   • Finding 3 Instant Coffee • Finding 4 Product Innovation Instant Coffee Market (20‐‐) x2 Company A Brand X Company B Brand Y A x1 BSource: COFFEE MARKET IN CHINA 2012.PPT 17
  18. 18. Major Public Companies ‐ Summary Net Profit 45,000 Size of the Bubble represents Market  40,000 Capitalization in USD bn 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 x1 x2 ‐5,000‐10,000 Total Income 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 18,000 Company 1 Company 2Source: Note: COFFEE MARKET IN CHINA 2012.PPT 18
  19. 19. Domestic Company – Company 1 Company Information Locations – China Address Line Corporate Address Tel No. ‐‐‐‐ Fax No. ‐‐‐‐ Website ‐‐‐‐ Year of Incorporation 19‐‐ Ticker Symbol Xxx Stock Exchange Yyy Products and Services Category Products/Services Headquarters Beverages Product 1, Product 2, Product 3   Key People Instant Noodles Product 1, Product 2, Product 3 Name Designation Services Service 1, Service 2, Service 3 Person 1 Designation 1 Person 2 Designation 2 Person 3 Designation 3 Person 4 Designation 4Source: COFFEE MARKET IN CHINA 2012.PPT 19
  20. 20. Domestic Company – Company 1 Financial Snapshot Key Ratios y‐o‐y Total Income Profit Particulars  change  20‐‐ 20‐‐ 20‐‐ 20‐‐ A Y (20‐‐ ‐‐‐) USD mn USD mn  Profitability Ratios 3,000 150 Operating Margin ‐‐ ‐ ‐ ‐ ‐ x4 Net Margin ‐ ‐ ‐ ‐ ‐ 2,000 x1 x2 x3 100 Profit Before Tax Margin ‐ ‐ ‐ ‐ ‐ 1,000 50 Return on Equity ‐ ‐ ‐ ‐ ‐ Return on Capital Employed ‐ ‐ ‐ ‐ ‐ 0 0 Return on Working Capital ‐ ‐ ‐ ‐ ‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ Return on Assets ‐ ‐ ‐ ‐ ‐ Return on Fixed Assets ‐ ‐ ‐ ‐ ‐ Financial Summary  Cost Ratios • The company incurred a net profit of USD  x  mn in FY 20‐‐, as  Operating costs (% of Sales) ‐ ‐ ‐ ‐ ‐ compared to net profit of USD y mn in FY 20‐‐ Administration costs (% of Sales) ‐ ‐ ‐ ‐ ‐ • The company reported total Income of  USD  y  mn in FY 20‐‐,  Interest costs (% of Sales) ‐ ‐ ‐ ‐ ‐ registering an increase of x % per cent over FY 20‐‐ Liquidity Ratios • The company earned an operating margin of y per cent in FY 20‐‐ a  Current Ratio ‐ ‐ ‐ ‐ ‐ decrease of x percentage points over FY 20‐‐ Cash Ratio ‐ ‐ ‐ ‐ ‐ • The company reported debt to equity ratio of x in FY 20‐‐ an  Leverage Ratios increase of y  per cent over FY 20‐‐ Debt to Equity Ratio ‐ ‐ ‐ ‐ ‐ Financial Summary  Debt to Capital Ratio Interest Coverage Ratio ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Indicators Value (dd/mm/yy) Efficiency Ratios Market Capitalization (USD) Fixed Asset Turnover ‐ ‐ ‐ ‐ ‐ x1  Asset Turnover ‐ ‐ ‐ ‐ ‐ Total Enterprise Value (USD) x2 Current Asset Turnover ‐ ‐ ‐ ‐ ‐ EPS (USD) x3 Working Capital Turnover ‐ ‐ ‐ ‐ ‐ PE Ratio (Absolute) x4 Capital Employed Turnover ‐ ‐ ‐ ‐ ‐Source: Improved Decline COFFEE MARKET IN CHINA 2012.PPT 20
  21. 21. Domestic Company – Company 1 Key Business Segments Key Geographic Segments A B C X% 100% 100% The company’s geographic   80% 50% reportable segment is ‘A’ 60% x1 y1 z1 n1 40% 0% 20% x2 n2 y2 z2 20‐‐ 0% x3 y3 z3 n3 20‐‐ 20‐‐ 20‐‐ 20‐‐ A Key Recent Developments Description  News • Company is primarily a manufacturer of beverage and instant food products. It operates  Overview in x provinces of China through different channels of sales and distribution points. • Company plans to raise its distribution channels in China from x1 to x2 New business • Due to increased production capacity and distribution channels capital spending of the  company is estimated to be around USD z mn Share Holding pattern • Company 1 operates as a subsidiary of the YSource: COFFEE MARKET IN CHINA 2012.PPT 21
  22. 22. Growing popularity of instant coffee and rapid expansion of retail outlets will lead to robust growth of coffee market Coffee production is expected to grow with a CAGR of Z% from X tons in 20‐‐ to Y tons in 20‐‐ Opportunities in the  Competitive  Market Size Market Landscape ‘000 tons Rising population and  x2 urbanization coupled  300 Coffee market in  Z% with a rise in disposable  China is dominated  income are major growth  200 by foreign retail  drivers for the coffee  coffee players  100 market in China x1 0 With retail coffee  Changing lifestyle and  20‐‐ 20‐‐e chains gaining rapid  rising demand among  popularity, retail  young population are  players dominate a  major contributors to the  greater share of the  growth of the coffee  coffee market in  market in China Challenges China Low per capita coffee  consumption provides a  • Rising Labour Costs Players are  scope for growth thus  diversifying into  • High Taxes instant coffee with a  acting as a major growth  driver for the coffee  • Health Hazards view to capture  market in China greater market share COFFEE MARKET IN CHINA 2012.PPT 22
  23. 23. Thank you for the attentionThe Coffee Market – China report is a part of Netscribes’ Food and Beverage Industry Series. For more detailed information or customized research requirements please contact: Jitendra Punjabi Phone: +91 33 4064 6215 E‐Mail: jitendra.punjabi@netscribes.comAbout NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. COFFEE MARKET IN CHINA 2012.PPT 23
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.