Thailand targets China’s expanding instant and ready-to-drink coffee market

China’s instant coffee market expands

Thailand is encouraging beverage producers to pursue opportunities in China as demand for convenient and higher-value coffee products rises. Bangkok Biz News reported that Thailand’s Department of International Trade Promotion, or DITP, identified premium instant coffee, ready-to-drink beverages, health-oriented coffee and distinctive flavors as promising categories for Thai exporters.

According to a survey by Thailand’s overseas trade office in Xiamen, the value of China’s instant coffee industry increased from 22.1 billion yuan in 2020 to 86.5 billion yuan in 2025. It is projected to reach 159 billion yuan by 2030. China is also accelerating domestic production, particularly by upgrading coffee from Yunnan province, as it seeks to reduce dependence on imported raw materials.

Urban professionals drive consumption

Convenience, easy preparation and shorter preparation times are supporting consumption among urban customers. Office employees account for 51.3% of the main consumer group, with demand particularly strong among people aged 23–35. First-tier cities—Beijing, Shanghai, Guangzhou and Shenzhen—represent 31.6% of consumption. Chengdu, Hangzhou, Chongqing and Tianjin, described as cities with economic potential close to the first tier, account for another 25.7%.

The figures show that demand remains concentrated in China’s more affluent urban markets. Distribution already spans major e-commerce platforms such as Taobao, Tmall and JD.com; convenience chains including 7-Eleven and FamilyMart; supermarkets such as Walmart and Carrefour; and livestreaming platforms Douyin and Kuaishou. These channels allow overseas suppliers to test products and reach consumers without relying solely on conventional retail networks.

Thai exports rise from a low base

China’s coffee imports from Thailand rose from $18,574 in 2020 to $234,873 in 2025, according to figures cited by DITP. That represents growth of 1,164.5% over five years, although the absolute trade value remains limited compared with the size of China’s market. The gap highlights both the potential for expansion and Thailand’s currently small position among suppliers.

DITP said Thai companies could differentiate their products through premium positioning, ready-to-drink formats, health attributes and ingredients associated with Thailand. Suggested combinations include coffee drinks made with durian or coconut. Fruit purée and frozen fruit pulp could also provide a higher-value outlet for secondary-grade fruit that might otherwise earn lower returns.

Exporters face domestic competition

China’s growing use of locally produced coffee means Thai suppliers will compete not only with international brands such as Nescafé, Maxwell House, G7 and UCC, but also with domestic names including HOGOOD and Nanguo and newer premium brands. Product adaptation, pricing and digital distribution will therefore be central to gaining market share.

DITP also pointed exporters to the Xiamen International Coffee Industry Expo 2026, scheduled for November 20–22, 2026, at the Xiamen International Conference & Exhibition Center in Fujian. The exhibition is expected to cover coffee beans, ingredients, instant coffee, brewing equipment, packaging, brand design and related services, giving suppliers access to participants across the coffee supply chain.