Market Trends of Asia Pacific Coffee Industry
This section covers the major market trends shaping the APAC Coffee Market according to our research experts:
An increasing trend for organic certified coffee
Coffee consumers in the Asia Pacific region are increasingly looking for ethical products from a social and ecological point of view. The trend of organic certification in coffee is gaining popularity in consumer markets of the Asia Pacific region, especially in India and China. The common belief among consumers in the region about organically produced products reducing exposure to synthetic chemicals and pesticides is boosting the trend for organic certified coffee.
The organic trend is big in the coffee sector and it is gaining traction with more and more people becoming aware of the benefits of the organic, sustainable route. The trend is especially driven by young consumers who are eager to try out new aromas and are still concerned about the roots of where the product comes from. Thus, key players are engaged in the production of such products to meet consumer demand as well as increase their product portfolio. For instance, in 2019 Lavazza, the Italian coffee brand launched Tierra Bio-Organic, an organic ground coffee in India.
Throughout the Asia Pacific region, there has been significant growth in awareness regarding healthy foods, a significant change in meal patterns and existing eating habits, as well as a desire to taste new products that have been boosting the demand for specialty and organic coffee products, especially the coffee pods and capsules. For instance, in 2022 Blue tokai coffee roasters, an Indian coffee brand, launched biodegradable speciality coffee capsules.
China is the fastest growing country
There is a hike in the trend of drinking coffee among the urbanized and affluent population of various countries in the Asia Pacific region such as China, India, and Japan. According to the China Policy of 2021, almost two-thirds of China's population lives in urban areas, with much broader food and beverage options. According to the USDA (U.S Department of Agriculture), from 2018-19 to 2020-21, coffee consumption in China increased by 140%.
The boom in the Chinese economy gave rise to consumers with disposable income and eagerness to upgrade their lifestyles. In addition, the growing affinity for drinking coffee and the surge in eagerness to try new aromas have boosted the demand for coffee in the region. Also, until recently young Chinese consumers have turned their backs on western coffee and are preferring domestic coffee brands, boosting the domestic consumption of coffee.
Coffee manufacturers are opening new stores and expanding their geographical footprints in China to further expand their market share and boost the Chinese coffee market. For instance, in 2022 Vietnamese coffee chain Trung Nguyen begun the international expansion of its premium café brand Trung Nguyen Legend along with its instant coffee range by opening its first store in Shanghai. Additional stores in Beijing and Chongqing are expected to open in October 2022.
