While
the market for coffee is dominated by Green Mountain Coffee
Roasters Inc.(NASDAQ:GMCR), The
coffee market in Europe is mainly lead by Nestle SA (PINK:NSRGY), through the
Nespresso Capsules. The market scene for China, however, is looking very
lucrative, and coffee companies are considering sending out branches to the
country, to reap in the benefit of the growing consumer culture in the country.
Following recent results at one of the locations in China, Nestle is hopeful of
the fact that demand for coffee will soon start growing, and as such, the
company has been bracing itself to spread out in the country. The scene is
looking lucrative for the sales of portioned coffee of good quality.
There
have been demands for more Nespresso machines, and the celebration of the year
of the Dragon, being held in Hong Kong which has been ornamented by the luxury
brand, Shanghai Tang, is also significant in this context. Starbucks is also
planning on introducing the Verismo single-serve to China by 2013. This
announcement by the coffee-chain was made during April, this year.
With
the wealth of the people on the rise, comes a certain taste for all things
expensive and exotic, and that is exactly what is happening in China. Despite
lesser number of per capita consumption of coffee as compared to many other
countries, there is a demand for luxury items such as coffee, even though the
demand is latent. Especially in the bigger cities such as Shanghai, the demand
is palpable. Other brands such as Mondelez International are also looking to
set up their business in China.
The
opportunity for companies has been illustrated with the help of statistics by
various analysts. Euromonitor International is a research institute
which pointed out that Coffee Pod sales have gone up over the last year, and
that standard ground coffee is also showing levels of growth in terms of sales.
The field is ripe for companies, and this might be the perfect time for them to
sow in their coffee products and machines in the country. With the growth of
the Chinese middle-class, China will also see a growth in the availability of
coffee. Nespresso’s expansion plans have not been revealed as of yet.
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