The current status of the coffee machine market

1.China's coffee machine market is in a phase of rapid growth with low market penetration.

At present, China's coffee machine market is in a phase of rapid growth, mainly due to the continuous penetration of coffee consumption culture in the country, with consumers gradually shifting their coffee consumption habits towards essential goods. Under such circumstances, the demand for freshly ground coffee has also experienced development. Generally speaking, the service life of a coffee machine is usually 3-5 years. The number of coffee machines in China is less than 0.03 units per household, far lower than Japan's 0.14 units per household and the United States' 0.96 units per household, with low penetration and huge development potential.

2.National coffee consumption habits are gradually developing, particularly in first- and second-tier cities.

Coffee consumption habits in China have been established for quite some time, with quite a number of people gradually liking and even becoming dependent on coffee, particularly in first- and second-tier cities. According to surveys, the average number of cups of coffee consumed per person in mainland China is 9 cups, with significant differences between cities. The coffee penetration rate of consumers in first- and second-tier cities has reached 67%, with consumers who have already developed the habit of drinking coffee consuming over 250 cups per year, equivalent to the mature coffee markets of Japan and the United States.

3.The proportion of freshly ground coffee is increasing, and the demand for coffee machines is expected to rise.

Currently, coffee is generally divided into instant coffee, freshly ground coffee, and ready-to-drink coffee. Freshly ground coffee, with its rich taste and outstanding quality, is increasingly recognized by consumers and has become the mainstream option in mature coffee markets. With the increase of the proportion of freshly ground coffee, it is also expected to stimulate the rising demand for coffee machines. From a global perspective, China is actually the largest coffee machine manufacturing and exporting country, with outstanding performance in the manufacturing process of coffee machines.

4.The industry market scale will steadily grow, and domestication rate will improve.

With the gradual increase in domestic demand for coffee machines, it is highly likely that these foundries will establish their own brands for operation. It is expected that by 2025, the domestic coffee machine market will reach a scale of about 4 billion yuan.