The whole industry chain of Yunnan coffee has achieved an output value of about 31.7 billion yuan

Jingdong recently released the "Yunnan Coffee Consumption Trend Insight White Paper" shows that with the popularity of coffee consumption, China has become the world's eighth largest coffee consumption market, "Yunnan coffee" has gradually become synonymous with good quality coffee, and the Yunnan coffee industry is rising
.
As the most suitable area for growing coffee in China, Yunnan has more than 130 years of coffee cultivation history and has formed a complete industrial chain, accounting for more than
98% of the country's planting area, output and output value.
In 2021, under the condition of reduced planting area and output, the output value of the whole coffee industry chain in Yunnan reached 31.
672 billion yuan, a year-on-year increase of 1.
72%, a record high
.

Domestic coffee consumption is growing at an alarming rate

Mr.
Zhao, who works in Kunming, has noticed that in the past year or two, there have been more and more small coffee shops in the surrounding area
.
The Nanxiangzi Bookstore, which he frequents, is located near the intersection of Huapu Road and Baima Temple Road, and is a bookstore
that mainly deals in coffee.

Wang Jingbo, the person in charge of the bookstore, said that since the opening of the store in 2017, although the road has been built in front of the door, the overall customer source is stable, in addition to in-store consumption, many customers choose to buy hanging earbags to take home or take back to the office to drink, taking into account both quality and convenience
.
Next door to the bookstore, a store called "Nantai Academy" has just opened, and it also uses coffee as its main drink
.

"This neighborhood is not a traditional place to relax, like the small garden where I live, there were only two coffee shops around in 2017, and now there are conservative estimates that there are more than
10.
" As Wang Jingbo said, this phenomenon can be seen everywhere around Cuihu Lake and in the city center: in a small shop of more than ten or dozens of square meters, there will always be customers sitting in front of the door, sitting or chatting, and taking a sip of coffee
from time to time.

"The domestic coffee consumption market has become an outlet
for industrial development.
" The "2021 Yunnan Coffee Industry Development Report" compiled by the Yunnan Coffee Industry Expert Group pointed out that in recent years, with the growth of residents' income, domestic coffee consumption is growing at an alarming rate of 15% per year, and in 2021, the consumption scale of China's coffee market reached 381.
7 billion yuan, becoming the world's eighth largest consumer market
after the European Union, the United States, Brazil, Japan, the Philippines, Canada and Indonesia.

Yunnan coffee is moving towards high quality and competitive prices

While the consumer market is growing rapidly, the "presence" of Yunnan coffee is also getting stronger
and stronger.

According to data from JD.
com, since 2020, JD.
com Yunnan coffee sales growth rate is higher than the overall market, compared with other coffee, Yunnan coffee has more growth potential
.
On this platform, from 2020 to 2022, the sales volume of Yunnan coffee platform increased by 6 times, and the number of users increased by 5 times
.

Ms.
Zhang, who likes coffee, always likes to go to Starbucks to order a cup of hand-brewed food when she sends her children to interest classes on weekends, and will specially ask the clerk to ask for sun-dried beans
from Yunnan.
"The taste of Yunnan beans is not worse than imported beans, you can know by looking at the price, the medium cup costs 44 yuan, which is higher than the price of some imported beans
.
" This is how she says about Starbucks' Yunnan coffee beans
.

When the first Starbucks opened in Kunming in 2011, it was crowded on a day when it was fashionable to go to Starbucks for a cup of coffee
.
Today, Starbucks has opened nearly 50 stores in Kunming, and has launched a total of 10 premium Yunnan coffee in the Chinese market, which is very popular
with consumers.

"International brands like Nestlé and Starbucks have a lot of market experience, and if adding Chinese elements was a very good emotional marketing in the past, now using Yunnan beans is adding points to the brand itself
.
" According to Hu Lu, vice president of the Yunnan Coffee Industry Association, these international brands used to announce the use of Yunnan beans to easily narrow the distance between brands and Chinese consumers, and now using Yunnan beans as one of the main beans of hand brewing is a deep recognition
of the quality of Yunnan coffee.

Hu Lu said that in previous years, limited by the simple planting and management concept and crude processing and grading methods, Yunnan coffee beans were mostly exported at low prices, processed by foreign coffee companies, and then sold back to China
at a high price.
In recent years, from coffee farmers to operators, they have recognized the importance of quality, so everyone is in line with international standards in terms of variety optimization, planting management, picking and grading, and back-end processing, and the quality of Yunnan coffee has gradually been recognized
by all parties.

"In 2021, the average purchase price of Yunnan coffee beans was higher than the New York futures price, which is the first time in the history of the
Yunnan coffee industry.
It can be said that 2021 is the first year
for Yunnan coffee to get rid of the control of futures prices and move towards high quality and competitive prices.
Hu Lu analyzed, since 2021, due to the worldwide production cut, the futures price has risen, coupled with the epidemic factors affecting coffee import and export; At the same time, Yunnan specialty coffee has increased significantly, the domestic coffee market demand is strong, in the case of blocked imports, buyers in cities such as Beijing, Shanghai, Guangzhou and Shenzhen have come to Yunnan to purchase high-quality coffee, which also leads to the average price of Yunnan coffee is much higher than the New York futures price
.

Specialty coffee is recognized by the market

Also in 2021, Yunnan coffee beans ushered in the golden period of hand washing: Starbucks, Nestle, KFC, Luckin, Seesaw, Mstand launched a variety of Yunnan coffee bean products in this year, whether it is an international giant or a local coffee new force, Yunnan coffee beans have almost become its necessary products
.

In Baoshan, specialty coffee beans grown by Pan Qizuo have become Starbucks' Coffee Beans
of Choice for the fourth consecutive year.
"Three generations of our family grow coffee, and grandpa grows coffee collectively; At that time, my parents could exchange 1 kg of coffee for 3 kg of rice, which was more cost-effective, so they followed suit; For me, because I was influenced by my family since I was a child, I chose to grow coffee
when I liked coffee.
Pan Qizuo said
.

However, Pan Qizuo chose a different path from his grandparents, he began to target the specialty coffee route in 2013, and now he has grown more than 1,000 acres of coffee beans, of which more than 200 acres have been put into production, and the coffee beans produced range from
100 yuan to 1,000 yuan per kilogram.
He said that in recent years, domestic coffee consumption has increased significantly, and eighty percent of the coffee beans grown are sold to first- and second-tier cities such as Beijing and Shanghai, and the remaining 20% are bought by local merchants in Kunming and Baoshan, and the supply exceeds demand
every year.

Kunming's local coffee brand "Siye Ka" also focuses on Yunnan specialty coffee, saying that "only use Yunnan beans, drink floral and fruity aromas.
.
.
Let China drink Yunnan, let the world drink good Chinese coffee"
.
In November and December, the brand went out of Yunnan and opened two stores in Guiyang, successfully realizing the local coffee brand "out of Yunnan into Qian"
.

"Specialty caffeine is recognized by consumers for its uniqueness, and it is precisely because of these attributes that specialty coffee has its additional value in the market, is not bound by New York futures prices, and has a good bargaining space and consumer market
.
" Huang Jiaxiong, chief coffee expert of the Institute of Heat and Economics of the Yunnan Academy of Agricultural Sciences, believes that after several years of exploration and practice, specialty coffee has become an important measure
for the transformation and upgrading of Yunnan's coffee industry and the improvement of quality and efficiency.

Build a globally important specialty coffee producing area

In Huang Jiaxiong's view, although specialty coffee is the direction of industrial development, Yunnan coffee still faces prominent problems
such as low product quality rate, insufficient product deep processing, and lagging industrial brand construction.
"At present, the global coffee boutique rate is about 10%, while the Yunnan coffee boutique rate is less than 8%
.
" Huang Jiaxiong said that the price of specialty coffee beans is generally more than twice that of ordinary commercial beans, and is not affected by international futures prices, but because more than 95% of Yunnan area is planted with "Katim", and the output rate of "Kartim" series of specialty coffee is low, so in addition to planting and processing according to specialty coffee standards to improve the quality rate, the coffee industry in Yunnan also needs to optimize the structure of coffee varieties to achieve high-quality and upgrading
.

In August this year, the Department of Agriculture and Rural Affairs of Yunnan Province, the Provincial Department of Finance and the Provincial Department of Industry and Information Technology jointly issued Several Policies and Measures to Promote the Improvement of Coffee Boutique Rate and Deep Processing Rate, clearly stating that by 2024, the province's coffee bean quality rate will reach 30%, and the coffee deep processing rate will reach 80%, and strive to build a globally important specialty coffee production area
.
The document also puts forward specific goals and compensation measures
from six aspects, including the development of intensive processing, building the Yunka brand, and building a boutique estate.

"Our industry used to call it 'coffee 6', and unlike in the past, most of the policies and measures in coffee came from the agricultural authorities, but now it is a joint document issued by multiple departments, and the primary, secondary and tertiary industries have more specific goals and incentive measures, which will inject more confidence
into the entire coffee industry.
" Li Gongqin, secretary general of the Yunnan Coffee Industry Association, said that coffee people around the world can understand New York coffee futures, as one of the world's top ten specialty coffee producing areas, Yunnan coffee is to try to get rid of the impact of New York coffee futures prices, which is a correct path
.

"To create your own brand, you must go out of Yunnan and move towards the huge domestic consumer market, not just export or raw material supply, that is not the strength of Yunnan coffee, then the high added value will always be given to others
.
" Talking about the future, Li Gongqin said that there are more and more coffee drinking scenes, coffee has gradually changed from a fashion drink to a mass drink, but the domestic coffee market is still in the cultivation period and high-speed growth stage, whether it is instant coffee or specialty coffee, practitioners do not have to worry about the future market prospects, but quality and standards are crucial
.

In Hu Lu's view, Yunnan coffee from flowering, hanging fruit to harvest is only a matter of time, "10 years ago to describe how good the prospects of the coffee industry may be many people will question, but now the spring of the coffee industry is really coming, in the next 5 to 10 years, the coffee track will become more and more prosperous, Yunnan coffee industry will be more vigorous
.
" ”

(Source: Kundian Economy)

China Food News(Version 07, December 19, 2022)

(Responsible editor: Luo Chen)