The Chinese coffee market is currently entering a period of rapid developments. According to a prospectus from Luckin Coffee, the average Chinese consumerconsumed a total of 6.2 cups of coffee. This figure represented a mere 1.6% of the US average and 2.5% of the Hong Kong average. The Chinese coffee market recorded a size of CNY 56.9 billion in 2018, and as the population’s awarenessof coffee and living standards continue to improve, the demand for coffee is expected to increase exponentially. The Chinese coffee market is expected to surpassthe CNY 70 billion milestone by the end of 2019 while average cups of coffee consumed per consumer is expected to grow to a total of 7.2 cups. The averagecups of coffee consumed per consumer is expected to grow to a total of 10.8cups by 2023 while market size is expected to grow to a total of CNY 180.6billion.

Accordingto the International Coffee Organization in London, Chinese consumption of coffeeis growing at an astonishing 15% per annum. China is expected to become a majorconsumer of coffee by 2025, with market size expected to reach a total of CNY1000 billion. Chinese consumers’growing fondness of coffee along with increasedperception of coffee as a fashionable beverage points to the enormous potentialthe Chinese coffee market holds.