The search of Chinese consumers for coffees with more refined flavors and the increase in online sales, due to Covid-19, may generate opportunities for Brazil to expand soluble coffee exports to China and expand the participation of Brazilian agribusiness in the Asian market, both in physical and e-commerce.
This is shown by a study on the Chinese coffee market, prepared by the international office of the Confederation of Agriculture and Livestock of Brazil (CNA) in Shanghai, in partnership with InvestSP. According to the document, the entry of soluble coffee in physical and online distribution channels may be a good initiative for Chinese consumers to get to know the Brazilian product gradually.
Soluble coffee is the main type of product consumed by the Asian, but the study points out that there is room for other types. "It is estimated that roasted and ground coffee may become an incremental market for soluble when the perception of coffee in China undergoes a transition from" luxury product "to drink of daily habit", says the study.
Although the Asian country is one of the largest coffee traders, consumers and producers in the world, the Shanghai office document shows that per capita consumption is still very low and has enormous potential for growth. The average Chinese drinks 4 to 5 cups a year, while Japanese and North Americans consume 360 and 400 cups annually, respectively.
According to the study, the average annual growth rate of coffee consumption in China is positive and in the past five years, it has been between 7% and 17%, a level higher than the global 2%. In addition, the country is diversifying the origins of the coffee acquired in recent years. The proportion of beans imported from other Asian countries has declined, while demand for African and Latin American coffee has grown in recent years.
Latin America's share of Asian country imports rose from 15% in 2017 to 24% last year. The African share increased from 5% to 10% in the same period, while other Asian countries that sell coffee to China had their marketing share reduced from 58% 3 years ago to 40% in 2019.
Currently, coffee from Brazil is qualified and released for export to China in the form of easy access. Data from the General Administration of Customs of China (GACC) reveal that, in 2019, the value of Brazilian coffee imports by the Asian country totaled more than USD 24 million, an increase of 12% compared to 2018.
The CNA's Shanghai office also conducted field research at points of sale such as supermarkets and wholesalers in the city. The survey pointed to the widespread popularity of instant and instant coffee powder among consumers, as it offers greater convenience in preparation. In this product category, coffee with milk has a strong presence in physical and online sales channels.