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Rising Domestic Demand Shifts China’s Coffee Market, Boosting Imports and Local Prices

According to a report by China Daily on February 26

China’s booming domestic coffee consumption is reshaping the country’s coffee market, curbing exports while driving a sharp increase in imports, according to traders and analysts.

In Southwest China’s Yunnan province—the nation’s primary coffee-growing region—peak harvest season from December to February has brought an unusual pricing dynamic. Domestic procurement prices now exceed export prices, prompting local producers and traders to redirect more of their supply to the domestic market.

Ma Mingyi, president of Xichen Coffee (Pu’er) Co, said domestic buyers are willing to pay 55–60 yuan ($8–$8.70) per kilogram for commercial-grade beans, compared with roughly 50 yuan per kilogram for export contracts. “This difference amounts to several thousand yuan per metric ton, giving domestic clients a strong advantage,” Ma noted.

Similarly, Gao Jie, general manager of Baoshan Gaolaozhuang Agricultural and Sideline Products Development Co, highlighted that over 70 percent of her company’s high-quality output is now being sold domestically. Specialty roasted coffee and organic beans have seen marked year-on-year growth across both online and physical retail channels.

Liang Jianyu, a coffee trader based in Guangdong province, said recognition of Yunnan coffee has steadily increased throughout the supply chain—from producers to café operators—fueling higher procurement volumes. “We purchase more than a ton of beans from Yunnan each year, with annual growth of 200–300 kilograms,” Liang said.

China’s coffee consumption is evolving beyond flavor, encompassing lifestyle, creativity, and cultural experiences. The “coffee-plus” model—incorporating fruit, pets, and elements of intangible cultural heritage—is increasingly popular, attracting new entrants to the sector. In Foshan’s Shunde district alone, the number of registered coffee shops has grown from 1,300 two years ago to over 1,800 by January 2026.

The surge in domestic demand also benefits global coffee-producing regions. China’s coffee imports reached over 12 billion yuan ($1.74 billion) in 2025, a 73 percent increase year-on-year, according to the General Administration of Customs. The country continues to diversify its import sources, now allowing green beans from 44 countries and regions, including Honduras, Papua New Guinea, and Burundi, alongside traditional suppliers such as Brazil, Colombia, Ethiopia, Kenya, and Uganda.

Li Yuliang, president of Foshan Nanming Lihuo Food Co, expects demand across Chinese provinces to rise further this year. The company’s coffee roasting plant output surged 50 percent last year, increasing demand for imported green beans.

Analysts say China’s rapidly expanding consumer market is not only creating opportunities for Yunnan coffee but also reshaping global coffee trade flows. The shift underscores the growing importance of domestic demand in one of the world’s largest emerging consumer markets.

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