While tea remains China’s primary beverage, coffee consumption is becoming more popular, especially with younger professionals in urban areas who increasingly purchase coffee away from home. Retailers are concentrated in Beijing, Shanghai, Guangzhou, and Shenzhen but have been on the rise in lesser populated cities such as Chengdu, Hangzhou, Suzhou, and Chongqing. These markets were initially dominated by international companies that arrived after trade liberalization in the early 2000s, but domestic retail chains have expanded in recent years. This trend has been facilitated by companies offering on-line purchase for either in-store pickup or delivery, which has raised volumes and lowered costs. This further stimulated consumption as coffee became more affordable. As the market grows, consumers are transitioning from imported soluble coffee to locally roasted coffee identified by origin (domestic or imported). 

China grows almost exclusively Arabica coffee in the prefectures of Baoshan, Dehong, Pu'er, and Lincang in the Yunnan Province where the altitude ranges between 1,000 and 2,000 meters above sea level. Output is forecast at 1.9 million bags in 2024/25. While Catimor is the most common variety grown due to its higher resistance to diseases such as leaf rust, it sometimes produces an inferior flavor. In response to demand for higher quality coffee, growers have begun planting other Arabica varieties such as Bourbon and Typica which offer better flavor and more favorably compete with imports.