Reason to Expand G7 Into China.

Topics: Tea, Coffee, Caffeine Pages: 4 (539 words) Published: May 14, 2013
Reason to expand G7 into China.

1. Overview about coffee demand in China:
Without the doubt, Tea is Chinese traditional drink. Tea-drinking in China began almost 5,000 years ago when, according to legend, some tea leaves fell into a pot of water the emperor Shen Nong (Thần Nông) was boiling. Steaming cups of jasmine, green or oolong tea have been the accompaniment to countless meals, conversations and business deals. In comparison to tea, coffee – eastern drink - has much shorter history in the biggest population country like China. Surprisingly, coffee gets more and more interest from Chinese young generation. Young generations who like to follow eastern style and exchange students who learned abroad and came back to their hometown for working are 2 main factors pushing the consumption of coffee. Then, coffee soon has been embraced by Chinese consumers as it offers another choice, another option beside their traditional tea. Instant coffee, canned coffee are seemed to be faster and convenient while tea or filtered coffee take a long time to taste it. As a result, coffee market began booming. Coffee demand in China may keep expanding by 20 percent a year. Coffee consumption in China is currently growing at a rate of 30% annually. In contrast, coffee consumption worldwide is growing at an annual rate of only 2%. Beside, potential coffee drinkers in China will probably keep expanding as many as 200 -300 million people. In the future China has the potential to become a major coffee-consuming country as the number of middle-class consumers rises regularly. Although Chinese government is paying more attention to domestic production of coffee and encourage foreign investment to grow coffee in Yunnan province (the largest coffee producer of China), the annually production output is just around 45,000 tonnes of coffee beans, leaving nearly half of demand fulfilled by imported coffee. 2. Overview of global coffee market

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