COFFEE MARKET IN CHINA

Although China is generally known as a tea-consuming country, both the production and consumption of coffee in China has seen double-digit growth in the last decade. This upward trend is projected to continue as long as investment is sustained and levels of disposable income continue to increase. In this rapidly expanding market, it is important for coffee producers and retailers in China to understand the preferences of emerging Chinese coffee consumers. Using survey data from Hubei and Zhejiang, China, we apply a Tobit regression model to analyze Chinese coffee consumers. Results show that the length of time consumers have been regularly drinking coffee, their self-assessed knowledge of coffee, and their taste preferences with regard to a variety of coffee products are all important factors in explaining Chinese coffee consumer trends. We suggest that coffee producers and retailers in China focus on improving the quality of their products to achieve long-term success.