Coffee Around the World: Why China Loves Instant, America Loves Brewed, and Japan Loves Bottled
Dec 15, 2016
Coffee may be a global drink, but how people actually consume it varies wildly depending on where you are. Data show that China, the U.S., Japan, and the U.K. each have their own “coffee personality.”
Originally published by Qdaily in Chinese
By Lianchao LAN
Coffee may be a global drink, but how people actually consume it varies wildly depending on where you are. Data show that China, the U.S., Japan, and the U.K. each have their own “coffee personality.”
In China, instant coffee is still king, holding about 70% of the market. But growth has slowed—so much so that Nestlé destroyed 400 tons of unsold instant coffee last year. The real action is happening elsewhere: bottled ready-to-drink (RTD) coffee is exploding, growing 21% in 2016 alone and expected to hit $850 million by 2020. Meanwhile, freshly brewed coffee—though tiny at just 2% of the market—is expanding at lightning speed, over 20% growth per year. No wonder Starbucks and Costa are racing to open more stores.
The United States couldn’t be more different. Here, brewed coffee dominates with a whopping 91% share. Americans consume nearly a third of the world’s coffee supply, making them the planet’s most devoted coffee drinkers. Still, RTD coffee is gaining ground too, with Starbucks’ bottled Frappuccino and cold brew leading a $480 million market that’s up nearly 10% since 2015.
In Japan, convenience is everything. With more than 19,000 7-Eleven stores across the country, bottled RTD coffee has become a staple of daily life. Big brands like Suntory line the shelves, and RTD coffee has led the market for years. If you want to understand Japan’s coffee culture, you don’t need to look at fancy cafés—you just need to step into a convenience store.
The United Kingdom is another story. Rooted in tea culture, the British have developed a taste for instant coffee, which makes up 67.3% of the market. Brewing coffee at home isn’t second nature, and many people end up spending around £15,600 over a lifetime in cafés instead. That’s been great news for Costa, the homegrown chain with more than 2,000 outlets and six straight years as Britain’s favorite brand. Bottled RTD coffee, however, barely registers with consumers.
The big picture? Coffee culture isn’t just about flavor—it’s about history, convenience, and habits. Americans sip their brewed coffee as a daily ritual, Japanese commuters grab a bottle on the go, Brits stir instant at home, and Chinese drinkers are caught between the old world of instant and the new world of RTD and café culture.