What does the editor market coffee data reveal in China?

China's coffee shop total passed 100,000 for the first time in 2016, yet the same year brought visible negative growth and a fresh round of consolidation. The consumer market grows about 16 percent a year, well above the global average, with younger customers driving demand, but owners report that opening a shop is easy and turning a profit is hard.

The findings come from the first big data report on the beverage industry, released jointly by the Meituan Dianping Research Institute and Kamen. It examines store counts, city distribution, shifting consumer groups, and product, environment, and service factors. As editor market coffee coverage, it suggests the second half of 2016 began reshaping weaker operators.

The coffee consumer market is expanding at an annual rate of 16%, far exceeding the global average, and young customers are becoming the core driving force of this industry. In 2016, the total number of coffee shops nationwide crossed the threshold of 100,000 for the first time, but in the same year there was also obvious negative growth, and a new round of reshuffling quietly unfolded in the second half. The threshold for opening a shop is not high, but profitability is becoming increasingly difficult, which has become the common experience of many cafe owners. Based on the first big data report on the beverage industry jointly released by the Meituan Dianping Research Institute and Kamen, this article sorts out the real survival status of coffee shops in China from dimensions such as changes in store numbers, urban distribution patterns, shifts in consumer groups, and product, environment, and service. At the same time, combined with the practical observations of brands such as Front Street Coffee, it provides practitioners with reference for judgment.

In an era where experiential consumption prevails, and in the process of an ever-younger consumer group, few new categories can win young people's favor like coffee. It is not only a symbol, but also represents a culture, and is moreover a vibrant emerging field. Its consumer market has reached an annual growth rate of 16%, far exceeding the global average.

All changes came too quickly.

Today, Kamen and the Meituan Dianping Research Institute jointly released the first beverage industry data report. The data in the report show that in 2016, the total number of coffee shops in China had already exceeded 100,000.

For coffee, this is both the worst of times and the best of times.

In an era where experiential consumption prevails, and in the process of an ever-younger consumer group, few new categories can win young people's favor like coffee. It is not only a symbol, but also represents a culture, and is moreover a vibrant emerging field. Its consumer market has reached an annual growth rate of 16%, far exceeding the global average.

However, at the same time, the development of the coffee market shows periodic inversion, the profile of new customer groups has its particularities, and added to this is the impact brought by the continuous iteration of new technologies... On this vast land with complex and intertwined consumption habits, coffee, as an imported product, has never faced such an unbalanced, changeable, and rapidly updating market environment.

Intensified competition, an accelerating pace of reshuffling, and a low threshold for opening a shop but difficulty in making a profit have become the general feeling among cafe operators.

At a time when the industry is changing rapidly and trends are hard to predict, we hope to provide practitioners with some trustworthy reference tools.

Kamen is a vertical self-media platform deeply engaged in the beverage fields such as coffee and tea drinks, continuously carrying out content integration and industry exploration in this segmented track; Meituan Dianping is the largest internet platform for the service industry in China, with 180 million monthly active users on mobile devices, and catering is its most core business segment.

Starting today, Kamen and the Meituan Dianping Research Institute will jointly initiate and establish a beverage big data center, and will regularly release industry data reports.

The first industry big data report focuses on the survival status of coffee shops in China. From it you will see:

@On the industry track, how many peers are actually competing? Which track are you on?

@What changes is the landscape of the coffee industry undergoing?

@What shifts have occurred among consumer groups in the new era? Do they match the customer group you are targeting?

@Under the coverage of industry giants, what breakthrough opportunities remain in product, environment, and service?

Data sampling note: the data were extracted from three time points recorded by Meituan Dianping: January 15, 2016, June 15, 2016, and December 15, 2016; covering coffee data from the four first-tier cities of Beijing, Shanghai, Guangzhou, and Shenzhen, as well as twelve key cities: Tianjin, Chongqing, Shenyang, Nanjing, Wuhan, Chengdu, Xi'an, Hangzhou, Qingdao, Zhengzhou, Xiamen, and Dalian.

Some macro data cite publicly released data from the International Coffee Organization, the National Bureau of Statistics, and others.

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The great explosion of coffee shops:

The number exceeded 100,000, and industry reshuffling intensified

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The great explosion of coffee shops

The number of coffee shops nationwide exceeded 100,000, but 2016 as a whole showed negative growth, and a new round of industry reshuffling appeared in the second half of the year.

▲A slight increase in the middle of the year, with industry reshuffling appearing in the second half

Conclusion

The number of coffee shops rose slightly in the middle of 2016, but the net closure rate for the whole year was relatively high, reaching 13.5%.

Changes in the number of coffee shops presented a parabolic shape, with growth in the middle of the year, and the industry entering a new round of reshuffling in the second half.

Cause analysis

1) The foundation of the coffee market is weak

2) Non-commercially driven individual entrepreneurs ignore basic business fundamentals

3) Supply and demand in segmented markets do not match

The above content is compiled by CoffeeHunters, a coffee news website.