China may have tea-drinking roots, yet coffee consumption is on the rise in what is, by purchasing-power-parity, the world’s largest economy.

And while the Chinese coffee industry might be young, it would be a mistake to think that it is behind Western and Australasian markets. From record-breaking auction prices to consumer-facing apps, China is transforming the idea of café culture.

Why is the Chinese Coffee Market Growing So Fast?

Coffee has long been valued in China as a status symbol. During the 1980s, it functioned as a rare, imported, and highly prized gift.

It was in the late ‘90s, when the first Chinese Starbucks store opened in Beijing, that coffee consumption slowly started to become mainstream. Coffee imports began to increase, with whole bean and ground coffee imports growing faster than soluble. Chinese consumers were looking for a way to create the café experience, rather than just a caffeine buzz.

Consumption is still relatively low compared to the US and Europe: in urban areas, consumers drink five cups of coffee per capita on average. However, this rate is increasing annually by 30%.

Second-wave chains have a strong presence. In 2019, there were 3,300 Starbucks stores across the country, with plans to double this amount over the next five years. The Chinese-owned Luckin Coffee competes heavily with Starbucks, opening 525 outlets throughout China in the first nine months after its launch. And KFC, which is China’s largest restaurant chain, serves up 100% Arabica coffee.

Third wave coffee also has a small but passionate following, while Chinese coffee farmers in Yunnan are increasingly targeting the specialty market.

The student demographic is at the forefront of the coffee-drinking movement. Consumption rates have increased faster in larger cities, such as Shanghai and Guangzhou, as young professionals return from Western universities with a new café-visiting habit.

Today, 75% of Chinese coffee consumers are the younger middle class. They are typically affluent, career-driven millennials with higher disposable incomes to spend on premium products such as coffee.

How the Chinese Coffee Industry Influences Prices

Coffee may have become more commonplace in China compared to in the ‘80s, yet its association with high value remains.

In green coffee auctions, Chinese roasters are consistently willing to pay more per pound for exceptional lots. In the 2017 Best of Panama and Cup of Excellence auctions, 37 of the 51 lots up for sale were purchased by East Asian roasters.

And at the 2018 Best of Panama show, a Geisha from Elida Estate went for $803, which was a record-breaking price at the time. Most of these beans were purchased by Chinese, Japanese and Taiwanese roasters.

Yet Klatch Coffee in the US also got 10lbs of the coffee, which they then sold at $75 a cup – something that likely could never have happened without the East Asia-led drive for exceptional, status-symbol coffees bought at record-breaking prices.

Coffee Apps and the Changing Consumer Experience

The world has turned away from cash payments during the COVID-19 pandemic, yet app-based transactions have been the norm in China for years.

70% of Starbucks customers in China order via their app, whilst Luckin Coffee only allows consumers to order and pay through WeChat, China’s biggest social networking application, or Luckin’s own ‘coffee wallet’ – no cash allowed.

Food and beverage delivery services are commonly used in China: in Beijing, around 1.8 million deliveries are ordered every day. Most transactions at Luckin Coffee are for pick-up and delivery, with the brand sending the customer a text once their coffee is ready.

We are only just beginning to see how COVID-19 will affect the coffee sector. Yet China is well-prepared for low-contact and efficient customer service, thanks to its early adoption of technology.

And while the Chinese specialty sector may only just be emerging, it is clear that it has immense potential to influence the international coffee industry.

Text author: Perfect Daily Grind Editorial Team
Sources:

• http://www.sprcoffee.com/Market.html Coffee Market in China: Trends & Consumer Strategies” pdf, page 6
• https://china.usc.edu/evolution-china%E2%80%99s-coffee-industry “Coffee Market in China: Trends & Consumer Strategies” pdf, page 46
• https://news.cgtn.com/news/2019-10-29/Coffee-getting-popular-in-tea-drinking-China-LbmEhxXzP2/index.html “Coffee Market in China: Trends & Consumer Strategies” pdf, page 12
• https://qz.com/1325403/luckin-coffee-startup-challenging-starbucks-in-china-worth-1-billion/
• https://www.youtube.com/watch?v=GWDxTUdxo9A around 1:18
• http://www.oceangroundscoffee.com/story-specialty-coffee-china/
• http://www.roastratings.com/roasters/fisher-coffee/
• https://www.dccchina.org/2019/09/coffee-market-china-is-growing-larger-coffee-consumption-imports-opportunities-in-china/
• https://www.npr.org/sections/goatsandsoda/2019/05/17/723193259/what-does-chinas-luckin-coffee-have-that-starbucks-doesnt?t=1578070849832
• https://dailycoffeenews.com/2017/07/26/record-coffee-earns-601-per-pound-at-best-of-panama-auction/
• https://www.bbc.com/worklife/article/20190619-why-this-coffee-costs-75
• http://www.squaremileblog.com/2018/10/31/our-first-chinese-coffee/
• https://www.coffeeinstitute.org/china-delivers-successful-1st-specialty-coffee-expo-forum/

Pictures: Designed by pressfoto / Freepik

Simonelli Group’s research provides suggestions to guarantee, to those who have an intolerance or are allergic to milk, a healthy way to sip a great cup of cappuccino in complete safety.

More and more coffee shops are offering a more extensive range of milk types and alternative drinks, (soy, almond, oat, etc.) for those cappuccino lovers that are allergic or have an intolerance, or even for those vegetarian and vegan cappuccino fans. But how to avoid contamination while using different types of milk in a coffee shop?

The International Hub for Coffee Research and Innovation – research hub born from the collaboration between Simonelli Group and the University of Camerino made a study project about the contamination that may occur during the utilization of different milk variants in the composition of a cappuccino.

Experimentation phase: the analysis of protein residue of cow milk in a cappuccino made with soymilk and frothed with the same steam wand.

The experiment used cow milk and a soy-based drink in the preparation of cappuccinos. The particularity of this analysis was to seek out the presence of protein residue of the cow milk inside the soy-based cappuccino, prepared with the same steam wand, and afterward analyzing also the cow milk cappuccinos.

Using an espresso coffee machine, the researchers made a series of tests attempting to replicate the most as possible, all the coffee shop’s customary conditions.

The procedure used is called Western Blot and is a biochemical method able to identify a protein in a determined specimen. In this procedure, the protein under analyzation is specifically the lactoglobulin, a whey milk protein only present in cow milk.

After various experiments using a clean cloth or paper towel and a separate pitcher, the observation was that the contamination originates with the way the steam wand is cleaned and purged by the barista.

The result of the research: an accurate cleaning procedure is the solution to avoid even the smallest contamination.

The study brought to light that contamination may very quickly occur. It is necessary to keep the machine accurately clean when preparing a cappuccino with another milk type. The approved sterilization method best at eliminating any contamination consists of cleansing the steam wand with boiling water and drying it every time with a clean paper towel. The use of different and dedicated pitchers is also a must to keep everything thoroughly uncontaminated.

To summarize the research, the simple wiping with a clean moist cloth on the steam wand doesn’t wholly avoid contamination. Still, it inevitably reduces the risk that a client with an intolerance gets unwell. Differently with an allergic client, the suggestion is to dedicate specific steam wands for every type of milk used. Or, use separate pitchers for each milk type and deeply clean the wands each time they are used, with boiling water and wipe it clean with a new paper towel.

May 2020, London – Trendsetter and reference point in the specialty coffee biz, the city will be the new home of the UK Victoria Arduino branch office. Simonelli Group will have direct supervision through the acquisition of the historic partner VA Machinery, that in the past years, profoundly contributed to the growth of the brand and diffusion of the coffee machines.

With this new step, Victoria Arduino will be even closer to one of the most important markets of specialty coffee. It will be the brand reference point in all of England and a place ready to welcome new and upcoming trends. So, prepare yourselves to live and get inspired by Victoria Arduino in the versatile and advanced city of London.

The Victoria Arduino experience is at your disposal in all coffee shops where the machines sit and are ready to brew for you a perfect drink. Visit 36 Tanner St. Bermondsey, London SE1 3LD

Dario Ciarlantini and Andrea Cremone battled out their skills and creativity on the Victoria Arduino Instagram page. Who will be the next contenders?

Victoria Arduino launched an Insta-challenge with some influential personages of the coffee industry. With the world forced into quarantine because of the COVID-19 pandemic, Victoria Arduino proposed to some coffee specialists to battle out themselves in various difficulty levels. The challenges demonstrate that even in the safety of one’s home, everyone can prepare an excellent cup of coffee or milk-based drink while being active, resourceful, and unleash inner creativity.Here are the trials Victoria Arduino proposed:

• Challenge #1 LATTE ART: Prepare the best latte art possible
• Challenge #2 GRINDING AT HOME: extract a coffee starting with only the coffee beans, without using an electric nor manual grinder
• Challenge #3 HOMEMADE DESSERT: prepare a coffee-based dessert (tiramisu’, the typical coffee-based dessert, is not accepted in this challenge)
• Challenge #4: DRAW WITH COFFEE: the best drawing made with coffee beans or ground coffee under one condition, the coffee must be capable of being reused.

To follow the battle of the coffee masters, join us on the Victoria Arduino Instagram page and send us your comments and suggestions.