Inside Asia Pacifics’s Evolving Coffee Consumption Landscape

Coffee consumption across the Asia-Pacific (APAC) region is evolving at unprecedented speed, driven by shifting lifestyles, premiumization, and the rise of both convenience-driven and specialty‑focused segments. This piece is an update to our video series on Asia Pacific coffee trends. In this article, we cover the changing demand of Taiwan, Korea, Australia and New Zealand, China and Japan (see below).  

This article at a glance:  

• APAC coffee markets are evolving rapidly, driven by premiumization and a split between convenience and specialty, especially in Taiwan and Korea. 
• In Australia and New Zealand, cost pressures are shifting demand toward home brewing and retail channels. 
• China’s market continues to expand quickly, fueled by low prices and highly efficient, delivery-led coffee chains. 
• Japan remains stable, with a growing focus on high-end coffees and curated experiences.  

Taiwan, a Market with Two Faces – Wen-Chun Hsu (Linda) reports 

Coffee culture in Taiwan is mainly driven by young urban consumers, who are familiar with a fast-paced lifestyle. This has contributed to the dominance of convenience-store chains such as 7-ELEVEN (with two primary brands, CITY CAFÉ and CITY PRIMA) and FamilyMart (owner of Let’s Café). These major chains drive daily consumption through diverse menus, consistent quality and accessible pricing. 

Specialty cafés are also expanding rapidly, driven by strong consumer interest in origin, processing methods and brewing techniques. Taiwan-grown specialty coffee is emerging, particularly from Alishan, a mountainous region traditionally known for tea that is now producing high-quality coffee. However, limited volumes and high prices pose major challenges for this locally grown coffee.  

These dynamics have created a dual consumption model. “On one hand, convenience-store chains are driven by consistency and low price. On the other, specialty cafés offer quality, experience and lifestyle identity. The coexistence of these segments makes Taiwan uniquely dynamic,” Linda explains. 

Taiwan imported around 726,000 bags in 2025, up 12% from 2024. Growth is driven by premiumization as younger consumers trade up to higher-quality coffees, while the commercial segment sustains steady demand. At the same time, bubble tea brands are expanding into coffee and reinforcing demand for milk-based drinks. 

Korea’s Barbell Workout – Marc Kihyeon Bang reports 

South Korea maintains one of the highest per-capita coffee consumption rates in Asia, with individuals consuming an average of 400–420 cups annually. Similar to Taiwan, this high demand has shaped a market defined by two polarized segments. 

“The Korean market is evolving into a 'barbell' structure, where value-driven franchises and ultra-premium specialty cafés have effectively squeezed out the mid-tier,” explains Marc Kihyeon Bang, Senior Trader for the Korea market.  

According to Bang, intense competition has pushed even budget-oriented brands to uphold high product standards. “Many chains now refuse to accept commercial beans with an SCA score below 80,” Bang notes.  

This industry standard, characterized by three distinct coffee options (dark blend, medium blend, and decaf), has become firmly established over the past 2-3 years. To attract consumers already well-acquainted with high-quality specialty coffee, many cafés are now focusing on unique and distinctive varieties that can surprise even the most seasoned coffee drinkers. In response, local cafés are evolving to stay competitive by enhancing in-store experiences, diversifying menus and offering more regional specialties.  

Demand for African and Latin American specialty coffees continues to grow, supporting higher prices for premium offerings. At the same time, the market remains sensitive to USD/KRW exchange rate movements, while stricter food safety policies and ESG requirements are also shaping he market.  

The ready-to-drink (RTD) segment is seeing a steady 5.9% annual growth, primarily driven by high demand among white-collar workers and home-café culture. The decaf market has also expanded consistently for two decades, with imports rising by an average of 16% annually. 

Australia & New Zealand, Demand Holds, Habits Shift – Amanda Panicucci reports 

Rising living costs are reshaping coffee consumption in Australia and New Zealand, with more consumers shifting from cafés to home brewing and retail channels. 

“Demand hasn’t disappeared, but it is increasingly flowing through supermarkets, e-commerce, subscriptions, and RTD formats rather than independent cafés,” said Amanda Panicucci, Managing Director of Sucafina ANZ. 

The market is also becoming more polarized. Value-driven consumers are moving to private label, blends and familiar flavor profiles while the specialty segment continues to focus on traceability and sustainability-aligned options, particularly in New Zealand. Fresh coffee is now the fastest-growing supermarket segment, while instant and pods are plateauing.  

“We are seeing the emergence of new trends, including iced and infused coffee, alongside visible growth in premium decaf and matcha as well,” said Panicucci.  

Higher green prices, freight costs, and regulatory pressure are increasing supply chain costs, prompting more regional sourcing and a shift toward blends. Despite this, demand remains structurally strong, with around 70–75% of Australians and New Zealanders drinking coffee daily. The market remains highly competitive and saturated, with ongoing margin pressure and spending split between premium and value segments. 

China’s High Growth, Low Prices & Intense Competition - Harry Bindloss reports 

China is the fastest-growing coffee market globally with demand rising rapidly over the past five years. Once tea-dominated, coffee consumption is constantly expanding, supported by a large population and highly efficient supply chains.  

The market is driven by large-scale coffee chains operating thousands of outlets, optimized for quick pickup and cost efficiency. Low prices have become a defining characteristic of the China market, with cups averaging around 10–18 RMB (approximately 1.5–2.7 USD). Some brands can offer even lower prices due to strong logistics and subsidies. However, sustained low pricing presents risks.  

“Consumers have become accustomed to coffee priced at 1–2 USD per cup, which could challenge both premium and commercial segments,” Bindloss noted. “It becomes harder for specialty cafés to justify higher prices in a cost-driven environment.” 

In addition, consumers in China continue to favor mixed beverages with milk, juice, or other add-ins, driving frequent menu innovation.  

On the supply side, coffee production at Sucafina’s Yunnan wetmill remains stable, while demand for imported coffee is strong. In 2025, Ethiopia overtook Brazil as China’s largest import origin, though this position may shift as the market continues to evolve. 

Japan, From Vending Machines to Omakase – Felice Chay reports  

Unlike other APAC markets, Japan has a long history of coffee consumption. Demand has remained relatively stable in recent years, with only a slight decline due to an aging population. 

“Japan is a very mature market that developed a unique coffee-drinking culture many decades ago,” said Felice Chay, Managing Director of Sucafina Japan. “Consumption is quite stable even as the population ages.” 

Japan imports roughly 6 million bags of green beans and 1 million bags of soluble coffee annually to meet domestic demand. It also has a distinctive ready-to-drink culture, with canned coffee widely available, even in rural areas, supported by more than 2 million vending machines. Convenience stores (or “konbini”) are also becoming increasingly important as they expand and premiumize their offerings. 

The specialty segment remains small but continues to grow, with premium cafés attracting customers through new experiences. One example is the coffee omakase model. Omakase, or “chef’s choice,” traditionally refers to a dining format where customers trust the chef to select dishes based on the freshest ingredients. In coffee, it translates into a highly curated drinking experience, creating a strong sense of anticipation and exclusivity.  

“This model elevates specialty coffee through limited offerings such as in-house roasted microlots, carefully selected water sources, and a three-course service, sometimes paired with food or pastries,” Chay explains.  

The Bigger Trade Picture  

Demand across APAC remains structurally strong, with steady growth in both commercial and specialty segments. Additionally, more chains now offer specialty-quality coffee at commercial prices, pushing the specialty segment to differentiate.  

“Specialty cafés are now forced to diversify themselves through experimental processing and super top-quality lots,” says James Dargans, Head of APAC. “Innovation is a main driving force of APAC. This includes innovation in the product and innovation on the concept as well, such as tiny cafe footprints or highly exclusive experiences.”  

Rather than following global trends, APAC is actively reshaping the market with increasingly distinct local demand patterns. If you’re looking to stay ahead of shifting demand, Sucafina can help you keep a pulse on what’s shaping the market. We share insights into evolving trends and can connect you with relevant offers. Reach out to our traders to explore new origins or supply options.