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In Q2 2024, Nestle, Luckin, Cat Four, and Starbucks showed significant growth. Black coffee has led the instant coffee market, with its share rising from 50% in Q1 2022 to 64% in Q2 2024.

Black Coffee Leads the Instant Coffee Market, Q2 Sales Revenue Up by 24% YoY

The instant coffee market is experiencing rapid growth. According to Sandalwood’s China e-commerce market data, the overall sales revenue of instant coffee in Q2 2024 reached 3.38 billion yuan, up 23.8% YoY.

By product category, black coffee sales in Q2 2024 grew by 24% YoY; 3-in-1 coffee saw a steady increase of 15%, while concentrated liquid coffee grew by 8% YoY. Black coffee's growth stands out.

As consumers pursue a healthier lifestyle, low-sugar, additive-free black coffee has become part of the healthy diet trend. Its rich caffeine content and instant nature meet the need for quick energy in a fast-paced life while reducing the burden of additives. On e-commerce platforms, such products are more easily discovered and chosen by health-conscious consumers.

According to Sandalwood data, black coffee’s share in the instant coffee market rose from 50% in Q1 2022 to 64% in Q2 2024, an increase of 14 percentage points, making it the leading category in instant coffee.

Consumers' pursuit of high quality and a healthy lifestyle drives the market towards new forms of black coffee.

Instant Coffee Brand Landscape, Nestle's Hold, Luckin's Rise, and Black Coffee's Competition

According to Sandalwood’s China e-commerce data, in the first half of 2024, Nestle, Luckin, Cat Four, and Starbucks showed significant growth in China’s e-commerce market for instant coffee.

Luckin and Cat Four achieved YoY growth of 30% and 36.6%, respectively, reflecting positive results in e-commerce promotion and market acceptance. Although Starbucks saw a YoY growth of 33.8%, its overall sales revenue remained relatively low. Due to the intense competition in the instant coffee market and its high-end brand positioning, Starbucks' growth potential is limited, resulting in slower growth in e-commerce channels.

In terms of product categories, Nestle maintains a leading position in the 3-in-1 instant coffee market. While its share has slightly declined, it remains highly competitive in this segment.

Brand competition is particularly notable in the concentrated liquid market, where Luckin’s market share rose from 3.5% in H1 2023 to 22.8% in H1 2024, making it the top brand in the concentrated liquid market. Luckin’s product innovation and aggressive marketing strategy have yielded remarkable results.

In the black coffee market, no clear leader has emerged, with brands maintaining a balanced competition. Nestle leads with a share of around 10%, followed closely by Saturnbird and Luckin, indicating ample room for competition in the black coffee market.

However, not all brands have shown growth. Overall, the instant coffee category in China’s e-commerce market is experiencing differentiated growth, with some brands achieving rapid growth through effective market strategies and product innovation.

Diverse Choices in Instant Black Coffee: From "Nestle Rich Blend" to "Luckin Coffee Energizing Bullet "

In terms of products, in the first half of 2024, Nestle secured market leadership with its "Nestle 1+2" product, holding a 20.6% market share.

Black coffee holds a significant position and high volume among top products. Besides Luckin Coffee’s " Energizing Bullet," bestsellers include "Nestle Rich Blend," SATURNBIRD Instant Series," "Nestle Gold," and "G7 Black Coffee," reflecting a shift in consumer demand in the instant coffee market.  

Luckin Coffee quickly gained market share with its " Energizing Bullet " and "Cold Brew Coffee Concentrate," demonstrating the competitive strength of innovative products. Concentrated liquid products like "Luckin Cold Brew Coffee Concentrate " and " YONGPU Coffee" also reflect the diversified demand for instant coffee.

Sandalwood data provides daily e-commerce sales data for key brands across the entire platform. If interested, please contact us service@sandalwoodadvisors.com