The Development History of Coffee in China
2025-06-04

Since its introduction to Maihao Town in Wenchang, Hainan, China in 1898, coffee has entered a period of rapid development after more than a hundred years.
In late March 2014, coffee harvesting was nearing its end in Yunnan Province, which accounted for over 99% of China's coffee planting area and production. Affected by the international market, after more than two years of "price winter", the purchase price of coffee beans soared from 13 yuan per kilogram to 25 yuan in 2014.
Despite the surge in prices boosting market confidence, China's coffee production decreased from 80000 tons in the previous season to less than 60000 tons in the 2013-2014 season. In the absence of large coffee brands and local brands, the pressure to reduce production has made it increasingly urgent for the Chinese coffee industry to break through from its raw material production areas.
According to a survey conducted at 03:34, the coffee planting area in Yunnan has grown from over 300000 mu in 2008 to over 1.4 million mu in 2014, and the output has increased from around 30000 tons to over 80000 tons in 2013, accounting for more than 99% of China's coffee planting area and output, making it the largest coffee producing area in China.
According to insiders in the coffee industry, looking at the price trend of Yunnan coffee in the past 20 years, there is almost a price cycle every 10 years. In 2010, the price of coffee in Yunnan reached a record high of 41 yuan per kilogram. From 2012 to early 2014, affected by the decline in international coffee futures prices, prices dropped to around 13 yuan per kilogram, and the coffee planting industry entered a "price winter" for two consecutive years.
At the end of January 2014, with the recovery of international coffee futures prices, Yunnan coffee prices also rapidly increased. In February, international coffee prices experienced the largest monthly increase in 20 years, rising from 114 cents per pound on January 28th to 180 cents per pound on February 28th
There are probably three reasons for the rapid rise in coffee prices: firstly, Brazil, the world's largest coffee producing country, has been experiencing a climate drought since the end of 2013, which is expected to affect coffee production; Secondly, some coffee producing countries in Central and South America are affected by coffee rust, and coffee production is expected to decrease; Thirdly, coffee futures have been sluggish for a long time, and coffee futures speculators intend to raise coffee prices and activate the coffee futures market.
The coffee harvest in 2014 is nearing its end, but the province's coffee production is still less than 60000 tons. Pu erh coffee production has also decreased by at least 30% compared to 2013. Despite the soaring purchase price, the significant decline in coffee production has cast a shadow over China's coffee planting industry.
Since 2014, Nestle, Starbucks, and Camille have increased their efforts to open up raw material production areas in Yunnan, and Yunnan small grain coffee has also been sold to Europe, the United States, and Japan
South Korea and more than 20 other countries and regions, but overall, Yunnan's coffee industry is still in its infancy, and the industry's "breakthrough" is not optimistic.
Currently, there is a lack of large-scale comprehensive enterprises in China's coffee deep processing industry, and there are even fewer local coffee brands. They have a small market share and low market evaluation both domestically and internationally.
According to an online survey, 47% of netizens prefer instant coffee, while 72% value coffee taste the most. The habit of Chinese people drinking coffee has probably begun since the 1990s, and now many urban people have become dependent on coffee. Although the annual consumption of coffee is only 200000 tons, the per capita consumption is increasing at a rate of 30%, and it is expected to become the world's most promising coffee consuming country.
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