![An employee in traditional ethnic group dress presents KFC's Yunnan coffee bean products in Kunming, Yunnan province [China Daily]](https://i0.wp.com/usachinatrading.com/wp-content/uploads/2022/04/An-employee-in-traditional-ethnic-group-dress-presents-KFCs-Yunnan-coffee-bean-products-in-Kunming-Yunnan-province-China-Daily.jpg?resize=525%2C295&ssl=1)
In 1952, Yunnan started to plant coffee on a larger scale. Its increasing popularity in China has motivated more companies to upgrade processing technologies and product quality. In addition to introducing new technologies and varieties from abroad, China has also developed new bean varieties domestically.
Yunnan plans to continue importing raw coffee beans from Vietnam, Laos and Myanmar. It will process them in Yunnan before exporting the finished product. By doing so, a coffee trading market can be built online and offline in Yunnan for sales inside and outside of China, according to the province’s coffee association. Before the pandemic, Yunnan exported more than 60,000 metric tons of coffee beans annually to Europe, North America, the Middle East and Vietnam. Now, hindered by strict contagion prevention and control measures and slower logistics, export volume of beans from Yunnan to overseas markets has declined to less than 10,000 tons a year, according to the association. At the same time, high costs, scattered planting and a lack of renowned local brands remain challenges for the local coffee industry.
In Yunnan’s mountainous areas, agricultural equipment can’t be used for large-scale mechanized farming, so planting and picking relies on manual labor. Skilled coffee workers are in shorter supply because many young people are leaving for work in cities, which is becoming a factor that can affect product quality, industry experts said. With the nation continuing to experience higher demand for better products as income levels rise, China’s coffee consumption is expected to grow over the long term. Yet, compared with many developed countries, China’s consumption of coffee is still at a relatively low level.
By 2025, the nation’s retail coffee market is forecast to rack up 219 billion yuan in sales, with a compound annual growth rate exceeding 20 percent, according to Analysys, a domestic data analysis service provider.
“There are nearly 10 million people working in the coffee industry in China, and the number of coffee consumers is growing rapidly,” Li said. “Yet, there is a lack of systematic training in coffee planting and preparation at schools and institutions in China. More training programs should be launched to foster professionals.”